2021 (1) TMI 1061

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.... through RPAD on 13/10/2020 for today i.e. 04/11/2020. The notice has not been received back unserved nor acknowledgement of the service is received back. The assessee has not intimated fresh address for service of notice. It seems that assessee is not interested in pursuing its appeal. Under these circumstances the appeal is decided in the absence of the assessee after hearing ld. Departmental Representative and examining material available on record. 3. The brief facts of the case as emanating from records are: The assessee is engaged in the business of commission, forex broking , etc. During the period relevant to assessment year under appeal, the assessee had made donations to the tune of Rs. 7,50,000/- to Navjeevan Charitable Trust an....

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....ely prove that the donation was indeed in the nature of accommodation entry." 4. Ms Smita Verma, representing the Department vehemently defended the impguend order and prayed for dismissing the appeal of assessee. The ld. Departmental Representative submitted that a search action under section 132 of the Act was carried out at the premises of Navjeevan Charitable Trust. The statement of one of the trustees, Shri Subhash Rajaram Kadam was recorded on oath under section 131 of the Act on 10/11/2014. In his statement he confessed that the Trust is providing accommodation entries. He explained the modus operandi. Donations were received by the Trust through banking channels and cash was returned back to the donors after deducting commission o....

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....unity to cross-examine witness relied upon by the Assessing Officer is not extended to the assessee, the entire issue has to be adjudicated fresh by giving fair opportunity to both the sides. Similar view has been taken by Hon'ble Bombay High Court in the case of R.W. Promotions (P) Ltd. Vs. Asstt. CIT 376 ITR 342(Bom). 7. Nowhere it is emanating from perusal of assessment order that the statement recorded by the Department that was used to disallow assessee's claim was provided to the assessee or the opportunity to cross- examine the person whose statement was used against the assessee was afforded to the assessee. The Assessing Officer ought to have provided material used against the assessee apart from providing an opportunity to cross ....