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Commissioner Of Income Tax ( ... vs Seth Vinod Kumar Somani Charitable ... on 3 January, 2019

Later when the JV project could not materialize , M/s. NCPL cancelled the JV and as such the money was returned back to M/s. NCPL by the assessee and the mortgage was released. Additionally, the assessee had furnished the copy of the JV, copy of the cancellation of JV, and in addition the assessee produced documents to prove the identity, creditworthiness and genuineness of the transaction with M/s. NCPL, M/s. NCPL's PAN is AACCN5258J and that M/s. NCPL is a regular income tax assessee the ITR intimation is of AYs 2015-16, 2016-17, 2017-18 and 2018-19 are seen at pages 266 to 269 of the paper book, the director of M/s. NCPL has filed an affidavit sworn before the Judicial 1st class Magistrate wherein he has admitted that M/s. NCPL provided Rs.17.46 cr. to set up manufacturing unit at Silvasa along with the assessee and that the JV has been terminated and that the assessee had refunded the full amount of Rs.17.46 cr. back to M/s. NCPL. These documents were filed before the authorities below and the documents could not be controverted or its veracity was assailed before us as not genuine documents, therefore, the addition made u/s. 68 of the Act only on the basis of two statements which could not stand the scrutiny of law, was warranted and therefore, the addition cannot be sustained as per law. On similar facts, the Hon'ble Gujarat High Court in the case of CIT v. Hitesh Somani, 221 Taxman 119 (Guj HC)has held as under:
Supreme Court - Daily Orders Cites 0 - Cited by 9 - Full Document

Vijay Timber Industries Pvt. Ltd.,, ... vs The Additional Commissioner Of Income ... on 30 July, 2019

33. We also note from the remand report that the AO was of the opinion that Shri Sushil Kumar Bhatter's decision to lodge a FIR on 31-03-2016 was an afterthought when the assessment order in respect of assessee was passed on 30-03-2016 u/s. 143(3) of the Act. We note that assessee has filed the complaint dated 30/3/2016 before the Police Station making the allegation stated therein which we have discussed, wherein Shri Sushil Kumar Bhatter has made specific allegation, which has not been controverted by the AO like he stated that he was only educated upto class II, and he was not conversant with English language and he requested the AO to ask questions in Hindi or Bengali and that even the statement which was recorded in English was not read over to him or translated to him. Without even attempting to give some explanation on these allegations the AO has merely made a remark that the action resorted to by the assessee of filing police complaint and the sworn affidavit before judicial first class Magistrate was an afterthought, cannot be countenanced and so the recorded statement of Shri Sushil Kumar Bhatter by the AO cannot be acted upon to draw any adverse inference against the assessee. Moreover, even if the statement of Shri Sushil Kumar Bhatter recorded by the AO is incriminating against the assessee, then also this statement which is adverse against the assessee ought to have been confronted with the assessee and the assessee given an opportunity to cross-examine, which exercise the AO has not carried out to do, which makes the statement of Shri Sushil Kumar Bhatter fragile and cannot be used against the assessee and for the various reasons discussed it has to be discarded. For this proposition, we rely on the Hon'ble Supreme Court's decision in Andaman Timbers (supra) and Odeon Builders (supra).
Income Tax Appellate Tribunal - Rajkot Cites 4 - Cited by 15 - Full Document
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