No addition of unexplained cash credits u/s 68 can be made based on the statements recorded of third party during search and seizure without providing any opportunity to the assessee to cross examine the same –

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No addition of unexplained cash credits u/s 68 can be made based on the statements recorded of third party during search and seizure without providing any opportunity to the assessee to cross examine the same -
Bhatia Diamonds Pvt Ltd Vs ITO
No addition of unexplained cash credits u/s 68 can be made based on the statements recorded of third party during search and seizure without providing any opportunity to the assessee to cross examine the same
– Assessee’s appeal allowed: DELHI ITAT
Whether addition of unexplained cash credits u/s 68 can be made based on the statements recorded of third party during search and seizure without providing any opportunity to the assessee to cross examine the same – NO : ITAT
++ assessee has considerable cogency that addition was made on the basis of statement of Sh. Rajendra Jain, but the assessee was not granted the opportunity to cross examine Sh. Rajendra Jain which ground was also raised before the CIT(A), who did not adjudicate the same, which is against the settled law. In exactly on the similar facts and circumstances the ITAT, SMC, Delhi Bench vide its order dated 06.11.2018 passed in ITA No. 3510/Del/2018 (AY 2014-15) in the case of Smt. Jyoti Gupta vs. ITO wherein, the SMC Bench has considered the statement of Vikrant Kayan and has held that since the impugned addition was made on the statement of Sh. Vikrant Kayan without providing any opportunity to the assessee to cross examine the same, which is in violation of principle of natural justice and against the law down by the Supreme Court of India in the case of Andaman Timber vs. CIT. Keeping in view of the facts and circumstances of the case and respectfully following the order of the Tribunal, SMC Bench, Delhi in the case of Smt. Jyoti Gupta vs. ITO and in view of the law settled by the Supreme Court of India in the case of Andaman Timber vs. CIT, on identical facts and circumstances, the addition in dispute is deleted and the appeal of the assessee is allowed. In the result, the appeal filed by the assessee is allowed.
ITA No.2821/Del/2018

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