2017 (8) TMI 190

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....d by the concurrent findings of the Commissioner of Income Tax (Appeals) ['CIT (A)'] as well as the ITAT deleting addition of Rs. 60 lakhs under Section 68 of the Income Tax Act, 1961 ('Act') and Rs. 60,000/- under Section 69C of the Act. 4. The assessee filed its return of income for AY 2005-2006 on 31st March, 2006 declaring a loss of Rs. 19,44,961/-. The case of the Revenue is that it received the information from the Directorate of Investigation that the Assessee had received accommodation entries of Rs. 60 lakhs from Cubic Commercial Resources Ltd. ('CCRL'), a paper company controlled by Mr. S. K. Gupta and others. 5. A search and seizure operation was carried out on the premises of Mr. S.K. Gupta and his associates. On the basis....

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....e above sum from CCRL pursuant to an agreement to sell. The CIT (A) noted that since the Assessee has produced the copy of agreement to sell, the onus has now shifted from the Assessee to the AO. However, the AO has made no attempt to disprove the agreement. The directors of CCRL were not summoned by the AO. No letter was issued to the said company or its principal officers. The AO did not ask the Assessee to produce them either. 8. The CIT (A) noted that the entire addition was based on the statement of Mr. S. K. Gupta. However, a copy of the sworn statement of Mr. S.K. Gupta was not given to the Assessee. The opportunity to cross-examine Mr S.K. Gupta, was also not provided. The CIT (A) also noted that according to the letter written o....