Third-party seized document cannot sustain addition without cash reference, corroboration, or cross-examination

A third-party seized document cannot support an addition where it does not mention cash and no corroborative statement from the person from whose premises it was seized is on record. The absence of an opportunity to cross-examine that person also breaches natural justice. On these facts, the seized material was insufficient as the sole basis for the addition, and the assessee's claim for relief was accepted.

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Issues: Whether the addition made on the basis of a seized third-party document could be sustained when the document did not mention cash and the assessee was not afforded an opportunity to cross-examine the person from whose premises it was seized.

Analysis: The seized material was the sole basis of the addition, but it did not contain any reference to cash. The material was seized from a third party, and no corroborative statement of the seized person was brought on record. The assessee was also denied cross-examination of the concerned person, which offended the principles of natural justice. In these circumstances, the addition could not be sustained.

Conclusion: The addition was not justified and the relief claimed by the assessee was accepted.

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