2017 (1) TMI 1451

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.... entry operator? 2. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 28,00,000/- made by the AO as cash credits u/s. 68 of the Income Tax Act, 1961? 3. Whether on the facts and circumstances of the case and law, the ld. CIT(A) has erred in deleting the addition made by the AO on account of commission paid to entry operator, amounting to Rs. 45,000? 4. That the order of the Ld. CIT(A) is erroneous and is not tenable on facts and in law. 5. That the appellant craves leave to add, alter, amend or forego any ground(s) of the appeal raised above at the time of the hearing. 2. The facts in brief are that the return of income for the AY 2005- 06 was filed on 25.10.2005....

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....dismissed on this account. Further, Ld. Counsel of the assessee has relied upon the order of the Ld. CIT(A) on merit and stated that Ld. CIT(A) has passed a well reasoned order on merits also which needs to be upheld and accordingly, the appeal of the Revenue may be dismissed. 7. I have heard both the parties and perused the records, especially the impugned order passed by the Ld. CIT(A). I find that on legal issue i.e. quashing of assessment, the Ld. First Appellate Authority has observed that the information received from the Investigation Wing are scanty and inadequate to form a reasonable believe. Ld. CIT(A) has observed that at this stage and even during the assessment stage the AO failed to make any enquiry and establish the cash cre....

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....garding identity issue of the creditor. The statement of General Manager of Hindustan Times Group only indicates that there was transfer of ownership of M/s VPC Financial Services Pvt. Ltd. Thus, the identity of creditor is established. Moreover, these third party evidences are never confronted to the person confirming the transaction. The AO did not make any further enquiry to verify whether the payment made by the creditor through the banking channel is actually travelled from the coffers of the appellant. Regarding the second category of creditors, the AO did not even mention the source of information he received. No further enquiry was made about these creditors and addition has been made only the based on some assumptions. Certainly, a....