Tribunal dismisses challenges to assessment, citing lack of evidence and fair opportunity.

The tribunal dismissed the challenges to the reopening of the assessment and the non-provision of backup data. Allegations of haste in passing the order were rejected as the assessee was given a fair opportunity. Regarding the addition of alleged on-money, the tribunal found insufficient evidence and lack of cross-examination, leading to the deletion of the addition. The appeal was partly allowed, and the addition of Rs. 1,05,97,720/- was removed.

---

---

Issues Involved:

1. Legality of reopening the assessment under Section 147 by issuing notice under Section 148.
2. Non-provision of backup/soft copy of the unaccounted tally data seized.
3. Alleged violation of principles of natural justice and fair play by passing the order in haste.
4. Addition of Rs. 1,05,97,720/- on account of alleged on-money received from Suraj Parmar or Cosmos Group.

Detailed Analysis:

1. Legality of Reopening the Assessment under Section 147 by Issuing Notice under Section 148:
The assessee challenged the reopening of the assessment under Section 147 by the issuance of notice under Section 148, claiming it was illegal, bad-in-law, or otherwise void for want of jurisdiction. However, this ground was not pressed by the assessee and thus was dismissed as not pressed.

2. Non-provision of Backup/Soft Copy of the Unaccounted Tally Data Seized:
The assessee argued that the Assessing Officer (AO) failed to provide the backup/soft copy of the unaccounted tally data seized from the premises of Cosmos Group. This ground was also not pressed by the assessee and was dismissed accordingly.

3. Alleged Violation of Principles of Natural Justice and Fair Play by Passing the Order in Haste:
The assessee contended that the AO passed the impugned order in great haste, violating principles of natural justice and fair play. The tribunal noted that the assessee was given due opportunity to present its case, and the submissions were considered by the AO. Therefore, this ground was not upheld.

4. Addition of Rs. 1,05,97,720/- on Account of Alleged On-money Received from Suraj Parmar or Cosmos Group:
The primary grievance was the addition of Rs. 1,05,97,720/- based on the alleged on-money received from Suraj Parmar or Cosmos Group. The tribunal examined the facts and found that the addition stemmed from search operations on Cosmos Group, revealing unaccounted cash transactions recorded in duplicate email accounts and tally files. Suraj Parmar's statement indicated that the unaccounted cash transactions were part of a joint venture with the assessee, and 40% of the cash component was to be given to the assessee.

The assessee denied receiving any cash component and pointed out discrepancies in the evidence, arguing that the data was unreliable. The tribunal noted that except for Suraj Parmar's statement, there was no corroborative evidence to substantiate the addition. The tribunal emphasized that no concrete belief could be formed based on abbreviations like "RJ," which were open to multiple interpretations.

Furthermore, the tribunal highlighted the importance of cross-examination, which was not provided to the assessee, making the addition unsustainable in law. Citing the Hon'ble Apex Court's decision in M/s Andaman Timber Industries V/s CCE, the tribunal underscored that not allowing cross-examination of witnesses whose statements were the basis of the impugned order amounted to a violation of the principles of natural justice.

Conclusion:
The tribunal found that the facts did not support the confirmation of the impugned additions. Consequently, the addition of Rs. 1,05,97,720/- was deleted, and the appeal was partly allowed. The order was pronounced on 6th October 2021.

---