TaxTMI 
TaxTMI 
2010 (4) TMI 1058
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.... at the residence of the respondent assessee and as well as at the residence of Shri Suresh A. Patel, land broker at Ahmedabad. During the course of search, at the residence as well as office of Shri Suresh A. Patel, certain incriminating documents were found containing details of transactions of land entered into with land owners and builders. With reference to noting recorded at p. 105 of the file Annex. A-1 seized from his office, Shri Suresh A. Patel in his statement revealed that transactions were pertaining to one Shri Manoj Vadodaria and that the account was written as per the instructions of Shri Manoj Vadodaria and Rs. 60 lakhs was paid on behalf of one Shri G.C. Patel. Shri Manoj Vadodaria on being confronted with the statement of....
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....ugh the order passed by the AO dt. 28th Sept., 1998 in the case of Shri G.C. Patel under s. 158BC r/w s. 158BD r/w s. 113. In the said order the AO has discussed the issue of Thaltej Char Rasta land in paras 13 to 13.5 of the assessment order and has made an addition of Rs. 42.60 lacs in the asst. yr. 1995-96. In the said order there is no mention of any payment of Rs. 60 lacs allegedly made by Shri G.C. Patel to the assessee through Shri Manoj Vadodaria. The AO in the case of Shri G.C. Patel has given English transaction of the land at Thaltej Char Rasta at p. 9 of Annex. A which forms a part of the assessment order which is as under : Land deal Thaltej Char Rasta Jamin (Rughu + Jivan) 30-11-1993 9,00,000 30-12-1993 1,00,....
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....n para 4 that a sum of Rs. 60 lacs was paid. However, a perusal of the assessment order passed by the AO in the case of Shri G.C. Patel clearly indicates that no addition on account of alleged investment of Rs. 60 lacs was made in the hands of Shri G.C. Patel for purchase of this land which according to the statement of through him to the present assessee. From the above it is clear that the AO assessing Shri G.C. Patel who is considered to have made unexplained investment in the disputed transaction thought it fit not to tax Shri G.C. Patel on the basis of statement of Shri Manoj Vadodaria. Even Shri Manoj Vadodaria states that he has not received any consideration for acting as a broker in respect of the above land. It is no doubt true....
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....ely no justification for making the disputed addition of Rs. 60 lacs which is directed to be deleted." 5. From the findings recorded by the Tribunal it is apparent that though it is the case of Revenue that the land situated at Thaltej Char Rasta has been sold by the assessee to Shri G.C. Patel through Shri Manoj Vadodaria, there is no material on record to indicate that the said land in fact belongs to the assessee. Though the AO has placed reliance upon the statements of Shri Manoj Vadodaria and Shri G.C. Patel for the purpose of taxing the amount in the hands of the assessee, despite specific request being made by the assessee for cross-examining both the said persons, the AO has not permitted the assessee to cross-examine them. In th....