Dismissing the appeal of the revenue the Tribunal held that Lender companies replied to the Assessing Officer in response to notice received by them and also filed the documents called including balance sheet. Statement of parties taken in the course of survey was neither given nor given an opportunity of cross examination. Inspectors report stating that lender companies are not traceable cannot be the basis to draw adverse inference against the asseesee. Deletion of addition was held to be justified. (AY. 2015-16)
ACIT v. Sreeleathers (2021) 86 ITR 7 (SN) (Kol.)(Trib.)
S. 68 : Cash credits-Loans-Lender companies replied to the Assessing Officer in response to notice received by them and also filed the documents called including balance sheet-Inspectors report stating that lender companies are not traceable-Statement of parties taken in the course of survey was neither given nor given an opportunity of cross examination-No adverse inference can be drawn against the asseesee-Deletion of addition was held to be justified. [S.133(6), 133A]