9911796707
TMI Blog2012 (9) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... - on 30.12.1999. The assessment was reopened by issue of notice u/s 148 of the Income Tax Act, 1961. Thereafter the Assessing Officer in his order u/s 147 read with s.143(3) of the Income Tax Act, 1961 observed that in the assessment proceedings of one M/s M.S.Capital and Management Services Ltd., (M/s MSCMS Ltd. for short) a statement was recorded from Shri Sanjay Rastogi, Director of that company, admitting that M/s MSCAMS Ltd. was engaged in the business of giving bogus/accommodation entries. Based on this statement, he treated the amount received by the assessee from M/s MSCAMS Ltd. And M/s Frenzy Products P.Ltd. (M/s FPP Ltd.), reflected as amounts received towards job work and commission respectively, as income from other sources. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not heard, the appeal was fixed for fresh hearing on merits. 3. Mr.Salil Aggarwal, Ld.Counsel for the assessee submitted that the statement of Shri S.H.Sanjay Rastogi was recorded by the Assessing Officer of M/s MSCAMS Ltd. He submitted a copy of the statement relied upon by the Assessing Officer was not given to the assessee and no addition can be upheld in such circumstances. He relied on the judgement of Hon'ble Supreme Court in the case of Kishanchand Chillaram, 125 ITR 713 (S.C.). He contended that there is no evidence whatsoever with the revenue authorities to come to a conclusion that the amounts received by the assessee are accommodation entries, except the evidence by way of statement which cannot be relied upon. He further d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cific ground before the Commissioner of Income Tax (Appeals). He also pointed out that the assessee sought an opportunity of cross examination. He pointed out that it is the case of the Assessing Officer that the assessee has suppressed sales and routed the amount through these two companies and in such circumstances no disallowance of expenditure can be made. 8. Rival contentions heard. The Assessing Officer as well as the Commissioner of Income Tax (Appeals) have not provided the assessee with the statement recorded from Shri S.H.Sanjay Rastogi in the assessment proceedings of another company i.e. MSCAM. An opportunity of cross examination was also not granted despite requests for the same. Under the circumstances the assessee has not b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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