Addition Based on Retracted Third Party Statement Without Cross-Examination Invalid

Sapphire Fintech Pvt. Ltd. Vs DCIT (ITAT Mumbai) Addition Based on Retracted Third – Party Statement Without Cross-Examination Invalid – ITAT Remands Matter to AO Assessee, a financing company, had originally been assessed u/s 143(3) accepting the returned income. Later, based on information from Investigation Wing that Rajendra Jain Group was providing accommodation entries, the AO reopened the assessment u/s 147 alleging that the Assessee received bogus loans of ₹1 crore (AY 2007-08) & ₹56 lakh/other amounts (AY 2010-11) from entities controlled by Rajendra Jain. The reopenin...