2010 (7) TMI 677

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....uestions of law :-  "(i) Whether in the facts and circumstances of the present case the action of the authorities below to make addition mere relying upon the statement of third person at the back of the assessee/appellant is legally sustainable in the eyes of law?  (ii) Whether in the facts and circumstances of the present case the action of the authorities below not to grant an opportunity to assessee/appellant to cross examine the person on whose statement the addition was made and not to hand over the copy of the statement, is legally sustainable in the eyes of law? (iii) Whether in the facts and circumstances of the present case the action of the authorities not to consider the additional evidence under Rule 46A of t....

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.... that a sum of Rs. 10,39,500 was deposited in cash in Centurion Bank of Punjab Ltd., Moga, on 19-2-2003, 21-2-2003 and 3-3-2003 in the account of the assessee. Accordingly, notice under section 148 of the Act was issued. The Assessing Officer also relied upon the observations of the Hon'ble Supreme Court in the case of McDowell & Co. Ltd. v. CTO [1985] 154 ITR 148/22 Taxman 11 and finding that the assessee had concealed the income, re-assessment was framed on total taxable income of Rs. 22,17,700 after making the aforesaid additions. Against these additions, an appeal was filed by the assessee before the Commissioner of Income-tax (Appeals) [in short "CIT(A)"]. During the pendency of appeal, the assessee made an application to file certain ....

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.... learned counsel for the assessee has no substance in it. We do not find any ground to hold that the reassessment was not justified. The Assessing Officer had not made the addition solely on the statement of third person Shri Shagun Garg but there was cogent material on record on the basis of which the reassessment was done. The HUF of father of the assessee, namely, Dwarka Dass (HUF) had surrendered a sum of Rs. 10,64,000 which was allegedly received from M/s Usha Garg and Company as undisclosed income by filing the revised return. There were cash deposits of almost equal amounts in the current account of M/s Usha Garg and Company before issuance of the cheques to the assessee. The grievance of the assessee that opportunity to cross examin....