Deletion of undisclosed income addition upheld where prior-year share sale income was accepted and cross-examination was denied.

Addition for income from undisclosed sources was deleted because the shares had been sold in the preceding assessment year and the resulting income had already been accepted by the Department. The addition was also found to rest on general statements, and the assessee had not been given an opportunity to cross-examine the material relied on by the Department. On these facts, the deletion was upheld and no interference was called for.

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Issues: Whether the deletion of the addition made on account of income from undisclosed sources was justified.

Analysis: The addition had been deleted by the appellate authorities on the ground that the shares had been sold in the preceding assessment year and the resulting income had already been accepted by the Department. The Department did not dispute the assessee's contention that the additions were based on general statements, and it was also noted that no opportunity of cross-examination was afforded to the assessee.

Conclusion: The deletion of the addition was upheld and no interference was called for.

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