2020 (9) TMI 772

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....is case is that the assessee declared a total income of Rs. 3,08,330/- in the original return of income filed on 30.05.2012 for the assessment year 2012-13. Subsequently, as a result of enquiry conducted by I & CI Unit of the Income Tax Department, Chennai, the assessee had filed a revised return of income on 31.03.2014 with a total income of Rs. 19,14,060/-. The case was selected for scrutiny and notice under Section 143(2) of the Income Tax Act, 1961 [hereinafter called as 'Act'] dated 04.09.2014 was served on the assessee. Subsequently, notice under section 142(1) dated 12.12.2014 seeking details and documents, was also served on the assessee. After careful examination of the case, the assessment order was passed computing the ta....

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....o Mr. Stephen John, by producing confirmation to this effect from the parties to whom the above cheques have been issued. Also produce copy of your agreement with Mr.Stephen John in connection with this transaction. 2. Further, a sum of Rs. 2,14,95,000/- has been claimed as payments made to various persons involved in vacating tenants for putting the property for sale. The said payments have been made by way of cheques issued. Furnish copies of receipts obtained at the time of issue of cheques detailing the purpose behind the payment or confirmation from such parties." 2.4 The assessee, by reply dated 20.03.2015, stated that she did not have any records in the said transaction and therefore, requested the department to exercise ....

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....fficer was Rs. 7,29,75,896/- and the said demand was directed to be paid as per the Demand Notice. 3. Aggrieved by the said order of the Assessing Officer/Deputy Commissioner of Income Tax, Non Corporate Circle-2, Chennai, the appellant/assessee filed appeal before the Commissioner of Income Tax (Appeals)-1. 4. The CIT (Appeals)-1, on analysis of facts and circumstances of the case, held that the appellant did not avail the opportunity of cross examination of Stephen John and did not emphasize the need to undertake a similar process to examine the so called debtors. Therefore, at the stage of remand proceedings, no evidence was submitted to substantiate the genuineness of the claim. It is further pointed out by the CIT (Appeals)-1 tha....

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.... cannot be entertained before the Tribunal. 8. The other ground taken by the appellant/assessee was that an opportunity of cross examination of Stephen John was not provided to the assessee by the CIT (Appeals). 9. The ITAT, was of the opinion that when the assessee asks for cross examination of the parties from whom evidences are collected, it is appropriate to provide an opportunity for cross examination. Though the statement of Stephen John was recorded in the presence of assessee's spouse, an opportunity of cross examination was not at all given to the assessee. If the CIT (Appeals)/Assessing Officer collects the evidences from the parties during the remand proceedings, the CIT(Appeals)/AO should have given an opportunity of c....

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....ect of evidence gathered behind the back of the appellant during the assessment proceedings, can be validated by giving an opportunity of cross examination in the appellate proceedings? 12. Heard the learned counsel on either side and perused the materials available on record. 13. Before the Income Tax Appellate Tribunal, the learned counsel who appeared on behalf of the assessee, contended that an opportunity of cross examination of Shri. Stephen John was not provided to the assessee by the CIT (Appeals) that too even after raising the said issue before the CIT(Appeals). The learned counsel further contended before the ITAT that while examining Stephen John, the statement was recorded by the Assessing Officer in the presence of the a....