TaxTMI 
TaxTMI 
2015 (12) TMI 451
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....n 30-09-2008 declaring total income of Rs. 29,21,270/-. During the course of assessment proceedings the AO noted that a search action u/s.132 of the I.T. Act was carried out at the premises of Pride Purple and Bhale group of Pune on 11-01-2008. From the premises of Shri Rakesh Agarwal, consultant of Pride group, a document No.27/Bundle No.2 pertaining to the assessee, i.e. Shri Sandeep Shantilal Khivansara was seized. The said document is related to execution of the transaction relating to sale of plot at Pune on which the assessee has disclosed short term capital gain. The document clearly indicates that against the agreement cost of Rs. 22 lakhs (i.e. amount considered by the assessee for computing short term capital gain) the total consi....
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....examine Shri Rakesh Agarwal before the issue is decided. 4. However, the AO held that the seized paper and the deposition of Shri Rakesh Agarwal relates to the transaction entered into by the assessee with the Pride group on which short term capital gain has been offered to tax by the assessee on the consideration received as per the agreement at Rs. 22 lakhs. The same was confirmed by the assessee as per his written submission dated 16-11-2010 after accepting the notings to be related to the above transaction. In the written submissions the assessee has chosen to isolate himself from the actual transaction recorded in the seized paper, understandably for the reason that the cash receipt of Rs. 29,83,030/- has not been accounted for by h....
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....nt of pride group, who has paid cash of Rs. 29,83,030/- over and above the cheque amount, has admitted the fact of making unaccounted cash payment of Rs. 29,83,030/- to the assessee as part of sale consideration. The nature of the seized document and the statement of Shri Rakesh Agarwal completely justify the action of the AO in making the addition of Rs. 29,83,030/- as assessee's concealed income. He accordingly justified the action of the AO in making the addition. 6. Aggrieved with such order of the CIT(A) the assessee is in appeal before us with the following grounds : "1. On the basis of facts and in the circumstances of the case and as per law, the CIT(A)-I, Nashik is not justified in confirming the addition of Rs. 29,82,030/- m....
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.... after following the principles of natural justice and in accordance with law. He accordingly submitted that the matter may be restored to the file of the AO with a direction to give an opportunity to the assessee to cross examine Shri Rakesh Agarwal and then decide the issue. 8. The Ld. Departmental Representative on the other hand heavily relied on the order of the CIT(A). 9. We have considered the rival arguments made by both the sides, perused the orders of the AO and the CIT(A) and the paper book filed on behalf of the assessee. We have also considered the decision relied on by the Ld. Counsel for the assessee. We find the AO on the basis of some documents seized from the premises of Shri Rakesh Agarwal, a consultant of pride gro....
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....e afresh after giving due opportunity to the assessee to cross examine the witness. The relevant observation of the Hon'ble High Court at para 11 to 13 of the order reads as under : "11. We find that there has been a breach of principles of natural justice in as much as the Assessing Officer has in his order placed reliance upon the statements of representatives of M/s. Inorbit and M/s. Nupur to come to the conclusion that claim for expenditure made by the appellant is not genuine. Thus the appellant was entitled to cross examine them before any reliance could be placed upon them to the extent it is adverse to the appellant. This right to cross examine is a part of the audi altrem partem principle and the same can be denied only on stron....