2020 (8) TMI 65

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....urn was processed under section 141(1) of the I.T. Act, 1961. Later on information was received from Investigation Wing that search was conducted under section 132 of the I.T. Act, 1961 on 27.06.2013 in Santosh Group of Institutions and Dr. P. Mahalingam. During the search, certain documents/books of account were seized from their premises and Administrative Block at Ghaziabad which reveal receipt of donation/capitation fees over and above the regular course fees paid in cash by parents of the students for taking admission in various medical courses. During the course of recording statement under section 132(4) relevant seized document were confronted to Dr. P. Mahalingam, Chairman of the Trust in which he has categorically admitted of acce....

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....sponse thereto issued summons, but, Dr. P. Mahalingam did not appear before A.O. for cross-examination on behalf of the assessee. The Ld. CIT(A), however, noted that right of cross-examination is not absolute right of the assessee. The Ld. CIT(A) even on merit confirmed the addition and dismissed the appeal of assessee. 3. We have heard the Learned Representatives of both the parties through video conferencing and perused the material on record. 4. The assessee in the present appeal has challenged the reopening of the assessment under section 147/148 of the I.T. Act, 1961 and addition of Rs. 27 lakhs on merits. 4.1. The Learned Counsel for the Assessee submitted that no right of cross-examination have been allowed to the statement ....

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....ee for cross-examination. The A.O. issued summons to Dr. P. Mahalingam at the appellate stage for providing an opportunity to the assessee to cross-examine his statement, but, Dr. P. Mahalingam did not appear at the appellate stage, therefore, the fact remained that assessee has been denied right to make cross-examination to the statement of Dr. P. Mahalingam. It is well settled Law that any adverse material collected at the back of the assessee when not confronted and that if any statement is recorded by the A.O./Revenue Department at the back of the assessee and such statement is not allowed for cross-examination on behalf of the assessee, such material cannot be considered against the assessee in the Income Tax proceedings and such mater....