2016 (12) TMI 556

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....r the sake of convenience. 2. First, we take up assessee's appeal in ITA No. 467/JP/2011. The assessee has raised the following grounds of appeal :- 1. On the facts and in the circumstances of the appellant's case, the ld. CIT (A) should have deleted the addition of Rs. 30,92,000/- which was carried out merely on the basis of statement of Shri Hanuman Yadav without any iota of evidences suggesting payment of such on money to him. The ld. CIT (A) on the basis of cross examination should have held that the above deponent is unreliable and false and in the interest of natural justice it could not have considered his statement as reliable. 1.2 On the facts and circumstances of the appellant's case, the ld. CIT (A) has thus failed to ap....

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....ndicating payment of such alleged on money and that the impugned addition is merely based on the statement of deponent who shown to be hostile in such cross examination. 2. Without prejudice to the above, the ld. CIT (A) has erred in appreciating the fact that the flag ship company of the group to whom the appellant belongs to had offered income by way of sources & that this flagship company was the ultimate beneficiary of the land purchased by the appellant by way of having rights for development in such lands and thus without prejudice such income offered there by way of source was available to meet such alleged payments even otherwise. 3. In the law and in the facts and circumstances of the case, the appellant denies his liability ....

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....e deed and in the statement given by Shri Hanuman Yadav. The assessee by this, preferred an appeal before ld. CIT (A), who after considering the submissions of the assessee and the material placed on record, sustained the addition of Rs. 30,92,000/- in respect of the transaction entered with Shri Hanuman Yadav and deleted the addition in respect of the transaction with Shri Madan Singh. 4. Aggrieved by this, the assessee and the revenue are in appeal before the Tribunal. 5. The only effective ground in assessee's appeal is against sustaining the addition made on account of the statement of Shri Hanuman Yadav. The ld. Counsel for the assessee submitted that ld. CIT (A) failed to appreciate the fact oral evidence cannot over ride the do....

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....tement was not bonafide but Shri Hanuman Yadav was black mailing the assessee. He submitted that interestingly the Revenue has accepted the sale consideration of the nearby vicinity. The ld. CIT (A) affirmed the view of the AO in this respect. Now the issue which requires our consideration is whether the addition can be sustained solely on the basis of the statement of Shri Hanuman Yadav, when there is no material placed on record that Shri Hanuman Yadav has made any claim against the assessee in any court of law seeking cancellation of sale deed or filing a recovery suit. The Coordinate Bench of the Tribunal after following the ratio laid down by Hon'ble Supreme Court under the similar circumstances has held in the case of Shri Ghanshyam D....