The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) deletes Addition under Section 68 of Income Tax Act, 1961 due to Insufficient Evidence of Bogus Transaction. The issue of the case is CIT (Appeals) had erred in confirming the addition of Rs.20,00,000/-, which was added by the Assessing Officer.
The assessee Anup Trade And Transport (P) Limited filed its return of income electronically declaring a total income of Rs.2,07,18,250/-. The case was selected for scrutiny assessment and a notice under section 143(2) was issued.
The assessing officer received information that the assessee had received unsecured loans from M/s. Amtek Financial Consultants Pvt. Limited and M/s. Associated Infraprojects Pvt. Limited. The ITO, Ward-4(3), Kolkata communicated that M/s. Amtek Financial Consultants Pvt. Limited was a fake/shell company and whoever had taken loans from this company was actually enjoying it.
The assessing officer treated both these loan transactions as bogus and made an addition of Rs.20,00,000/-. The assessee submitted that it had received loans from these two companies and provided the assessment order passed upon the creditors in Assessment Year 2015-16 and copies of the bank statement. However, the Assessing Officer did not accept the submissions and treated both loan transactions as bogus.
The Assessing Officer relied on information received from another Income Tax Office and the statement of a person recorded by the Investigation Wing. However, there was no cross-verification of the evidence by the revenue authorities.
The Bench consisting of an Account Member, Manish Borad and a Vice-President Rajpal Yadav directed the Assessing officer to examine the issue afresh and provide an opportunity of hearing to the assessee.
The tribunal also directed that if the statement of the person recorded by the Investigation Wing is being relied upon, the assessee should be given an opportunity to cross-examine him. The information received from another ITO was also not treated as a gospel truth and had to be examined. The appeal of the assessee got allowed for statistical purposes.
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