2017 (11) TMI 1659

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....e assessment u/s 143(3) r.w.s 147 of the Income Tax Act/1961. 2. On the facts and circumstances of the Appellant's case and in law the Id. Commissioner of Income Tax (Appeals) erred in confirming the action of Id. AO for making an addition of Rs. 10,00,000/- on account of accommodation entry treating the same as unexplained cash credit in the hands of the assessee u/s 68/69A of the Income Tax Act/1961. 3. On the facts and circumstances of the Appellant's case and in law the Id. Commissioner of Income Tax (Appeals) erred in confirmingthe action of Id. AO for disallowing the interest paid amounting to Rs. 30,400/- on the alleged accommodation loan of Rs. 10,00,000/-, by treating the same as non business expenditure. 4. The Ap....

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....that the A.O. has purely relied upon the statement of Shri Praveen Kumar Jain and formed a belief that the assessee took accommodation entry. The A,O. failed to provide the copy of the said statement to the assessee during the course of assessment proceedings nor the opportunity of cross examining the said person. The satisfaction recorded by the A.O. while reopening the said assessment was without jurisdiction as it is not mentioned anywhere in the assessment order that Shri Praveen Kumar Jain has specifically stated that he has given accommodation entry to the assessee. The assessee's case has been reopened merely on the basis of the statement of a person without any clear reference of the assessee's name by the said person. The c....

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....coercion and force. Therefore, the reliance of the A.O. upon the statement of Pravin Kumar Jain is incorrect in light of his retraction affidavit. 4.5 Non appearance of the said party before the Ld. A.O. for verification could not lead to a conclusion that the said party was non-genuine. 4.6 Reliance is placed on the judgment of the jurisdictional Tribunal in the case of M/s. Shaf Broadcast Pvt. Ltd. vs. ACIT vide TTA No. 1819/Mum/2012, in the case of the Hon'ble Kolkata High Court in the case of Berger Paints India Ltd. v. Assistant Commissioner of Income-tax (266 ITR 462), The Hon'ble Amritsar Bench of ITAT in the case of Pyramid Software and Technologies vs. DCIT (105 ITD 305) and various other judgments. 9. However, CIT(....