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2012 (9) TMI 691 - ITAT, DELHIAddition of amount reflected as amounts received towards job work and commission from M/s M as income from others on ground of it being accommodation entries - assessment reopened on ground that statement recorded during assessment proceedings of M/s M admits that M/s M was engaged in the business of giving bogus/accommodation entries - Held that:- AO as well as the CIT(A) have not provided the assessee with the statement recorded from director of M/s M in the assessment proceedings of another company i.e. M/s M. No opportunity of cross examination was also granted. Under the circumstances the assessee has not been confronted with the evidence gathered behind its back, hence, the statement cannot be the basis on which a conclusion can be drawn that the amounts received from these two companies are infact accommodation entries. In absence of any other evidence, addition made is directed to be deleted Dis-allowance of expenditure on surmise that sales may have been suppressed and the amounts were routed through these two companies - Held that:- If this is the case of the A.O, then the question of disallowance of expenditure on the ground that these are accommodation entries and hence do not have any expenditure does not arise. Expenditure incurred on manufacture and sales has to be allowed - Decided in favor of assessee
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