2017 (9) TMI 802

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....ssessment U/s 147 without appreciating the facts and records available with AO as also without appreciating the fact that AO had acted on borrowed satisfaction as against his own assessment for making the satisfaction. 2. Under the facts and circumstances of the case and in'law the Id. CIT(A) has erred in confirming the addition of Rs. 40 lacs made by the AO invoking the provisions of Sec 69B of the Act 3. Under the facts and circumstances of the case and in law the Id. CIT(A) has erred in not appreciating the fact that the AO had not provided proper opportunity to rebut nor allowed cross examination of the party on whose statement AO had relied upon to make such addition. 4. Under the facts and circumstances ....

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.... recorded for reopening, copy of the information received from the wing and a copy of the relevant extract of the statement for Shri. Niranjan Hiranandani, Managing Director of Hiranandani Group recorded on oath on 14/03/2014 u/s. 132(4) of the IT Act. The assessee contested the reliance placed by AO on the information in possession of the AO referring to it as a dumb document and could not be relied upon. Assessee asked for cross examination of Niranjan Hiranandani on whose statement, addition was made by AO vide letter dated 09/03/2015, however, the AO categorically denied the cross examination. 5. Without affording cross examination AO made addition on the basis of statement of Director of Hiranandani Group u/s.69B being unexplained i....

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....the authorities below. From the record, I found that assessee has taken flats in the building known as Richmond Building at Hiranandani Garden, Powai, Mumbai. There was a search on the Hiranandani Group, wherein Director of the Company accepted receipt of on-money from the persons who have taken flat in their building. Statement of Director was recorded. The case of assessee was reopened by issue of notice u/s.148. AO has recorded reasons for reopening and also supplied the same to the assessee. I had carefully gone through the reasons so recorded and found that AO has sufficient reason to believe that income has escaped assessment, accordingly reopening was justified. With regard to the merit of the addition, I found that on the basis of s....

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....cording to the revenue, the Director of M/s. Thakkar Agro Industrial Chem Supplies P. Ltd. in his statement had stated that there were no sales / purchases but the transactions were only accommodation bills not involving any transactions. The Tribunal has recorded a finding of fact that the assessee had disputed the correctness of the above statement and admittedly the assessee was not given any opportunity to cross examine the concerned Director of M/s. Thakkar Agro Industrial Chem Supplies P. Ltd. who had made the above statement. The appellate authority had sought remand report at that stage the genuineness of the statement has not been established by allowing cross examination of the person whose statement was relied upon by the revenue....

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....unity was granted and the aforesaid plea is not even dealt with by the Adjudicating Authority. Appellant had contested the truthfulness of the statements of these two witnesses and wanted to discredit their testimony for which purpose it wanted to avail the opportunity of cross-examination. That apart, the Adjudicating Authority simply relied upon the price list as maintained at the depot to determine the price for the purpose of levy of excise duty. Whether the goods were, in fact, sold to the said dealers/witnesses at the price which is mentioned in the price list itself could be the subject matter of cross-examination. Therefore, it was not for the Adjudicating Authority to presuppose as to what could be the subject matter of the cross-e....