AO assessed the long term capital gains on sale of shares as cash credit u/s 68 of the Act and alleged commission u/s 69C of the Act on the basis of bank statement issued by the Bank which was confirmed by the CIT(A). On appeal the Tribunal held that addition on the basis of bank statement treating the statement as books of account is held to be not valid. Tribunal also held that statement of third parties cannot be relied upon without giving an opportunity of cross examination. Accordingly addition was deleted. Referred. Sheraton Apparels v. ACIT (2002) 256 ITR 20 (Bom.)(HC). (AY.2015-16)
Amitabh Bansal v. ITO (2019) 175 ITD 401 (Delhi)(Trib.)
S. 68 : cash credits–Bank statement is not books of account Sale of shares–Addition on the basis of bank statement treating the statement as books of account is held to be not valid–Natural justice–Statement of third parties cannot be relied upon without giving an opportunity of cross examination. [S. (2(12A), 44AA, 45, 69, 69A, 143(3)]