TaxTMI 
TaxTMI 
TaxTMI 
2017 (11) TMI 1596
X X X X Extracts X X X X
X X X X Extracts X X X X
.... money made by the Id. AO without providing copy of seized materials relied upon by the Id. AC and without allowing request of the appellant before the Id. AO as well as before the LID. CIT(A) to allow cross examination of evidences/confirmations/declarations that were in possession of the department for reopening the assessment. Confirming the assessment order that was passed in violation of principle of natural justice is bad in law and needs to be quashed. 4) Without prejudice to the above and without admitting, on the facts and circumstances of the case and in law, the LID. CIT(A) erred in confirming the addition of Rs. 1 crore based on the allegation that appellant only has paid on money in respect of purchase of the flat Confirmation of the addition being arbitrary and in violation of principle of natural justice needs to be deleted. 5) The appellant craves leave to add, to amend, alter/delete and/or modify the above grounds of appeal on or before the final hearing. 2. As per the facts of the present case, the assessee is an individual and filed its return of income declaring total income of Rs. 83,19,830/- on 29.11.07 and the same was processed u/s 143(1) of the I.T.....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... payments' received from various parties on account of sale of flats. The AO in the order of assessment has categorically mentioned that the Director of the Hiranandani Group in the statement recorded on oath had accepted the fact that 'on money' (cash) was received on sale of various flats from various persons including the assessee and the Hiranandani Group had declared such 'on money' receipts as additional income in respective assessment years. Since this fact was unearthened during the course of search and seizure action conducted on Hiranandani Group of builders and developers and during the course of search proceedings, the statement of the director of Hiranandani Group were recorded by the Investigation Wing of the Income Tax Department, wherein the directors/promoters of the Hiranandani Group admitted to have received on money from the assessee and confirmed that the same had not been reflected in the regular books of account. The said admission made by the directors is on oath before the investigation wing which conducted such proceedings during the discharge of their official duties. Apart from the above, during the conduct of such search, the incriminating evidence i.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ening, the only question which is to be considered is whether there was relevant material on which a reasonable person could, have formed a requisite belief. However, whether the materials would conclusively prove the escapement is not the concern at that stage. This is so because the formation of belief by the Assessing Officer is within the realm of subjective satisfaction. Since in the present case, the AO had the tangible material from the Investigation Wing in which it was categorically mentioned that the assessee had paid 'on money'of Rs. 1 crore to Hiranandani Group and moreover no scrutiny assessment was carried out prior to reopening inititated by the AO. Therefore, while relying upon the proposition laid down by the Hon'ble Supreme Court in the case of ACIT vrs. Rajesh Jhaveri Stock Brokers (P) Ltd. (2007) 291 ITR 500(SC), we dismiss this ground raised by the assessee and uphold the order of Ld. CIT(A). Ground No. 2 to 4. 6. Since all the above grounds raised by the assessee are inter connected and inter related and related to challenging the order of Ld. CIT(A)in confirming the addition of Rs. 1 crore as 'on money' made by the Ld. AO without providing copy of seized m....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ving heard both the counsels at length and after perusal of the material placed on record, we find that Ld. CIT(A) while deciding these grounds has mentioned that the assessee had disputed the addition of Rs. 1,00,00,000/- made by the AO. Ld. CIT(A) while upholding the additions made by AO had only relied upon the statement of the directors of Hiranandani Group admitting the receipt of cash money from the assessee. Whereas on the contrary, the assessee from the begining had been requesting the AO to provide the copies of the statement of the Director of Hiranandani Group and to provide opportunity of cross examination of the said director. We have further noticed that at every step of investigation, the assessee had been requesting the revenue to provide copies of statement or the material on the basis of which additions are being made. However even in spite of several requests made by the assessee, the revenue had not supplied the said documents to the assessee. In our considered view that not providing copies of the statement of the Director of the Hiranandani Group to the assessee before making additions and not providing opportunity of cross examination to the assessee itself a....