TaxTMI 
TaxTMI 
2025 (12) TMI 968
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....t has raised the following grounds of appeal: "1. Whether on facts and circumstances and in law, the Ld. CIT(A) has erred in deleting addition of Rs. 10,00,059/- u/s 69C of the I.T. Act, when the assessee could not substantiate with documentary evidences that the funds transferred to the Bank account of the entity was not for layering of funds in lieu of entries? 2. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in ignoring the fact that the assessee is a beneficiary of accommodation entries under the guise of bogus purchases from Shri Kirit D. Patel during the year under consideration? 3. The appellant craves leave to amend or alter any ground or add a new ground, w....
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....nd report, wherein the Assessing Officer stated that the assessee had filed no additional evidence under Rule 46A. The assessee filed a detailed rejoinder along with ledger accounts, bank statements, GST returns, invoices, reconciliation statements, and other documentation which she maintained were already filed during the assessment proceedings and thereby directly addressed the allegations. After examining the material on record and the reasoning given by the Assessing Officer, the Ld. CIT(A) held that there was no documentary evidence to show that the assessee had entered into any transaction with Shri Kirit D. Patel or incurred any unexplained expenditure. The Ld. CIT(A) observed that no primary evidence, no bank trail, and no statement....
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....e settled legal position, as reiterated in Andaman Timber Industries v. CCE (2015) 281 CTR 241 (SC), is that denial of cross-examination of third-party statements relied upon by the revenue vitiates the assessment. The law on this issue is well settled that third-party loose sheets, unsigned digital data or uncorroborated documents cannot be used as evidence against an assessee unless supported by independent evidence, and unless the assessee is offered cross examination of the persons whose statements or documents are relied upon. The Hon'ble Gujarat High Court in Kaushik Nanubhai Majithia [Tax Appeal No. 20 of 2024, dated 29.01.2024] held that an unsigned Excel sheet seized from a third party has no evidentiary value and cannot form t....
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....d party in absence of any document evidencing the fact that assessee had paid any cash as on-money to said party for purchase of property. In the case of Vinit Ranawat v. Asstt. CIT [2017] 88 taxmann.com 428 (Pune-Trib.), the ITAT held that no addition can be made in the hands of the assessee on the basis of papers found with the third party when there was no business connection between the assessee and that third party. In the case of Rucha Consultancy LLP vs. Deputy Commissioner of Income-tax [2025] 174 taxmann.com 221 (Mumbai - Trib.)[07-04- 2025], ITAT held that where additions of Rs. 2.10 crores and Rs. 1.99 crores were made under sections 69A and 69C respectively on basis of a WhatsApp image found in phone of assessee's personal assis....