TaxTMI 
TaxTMI 
2021 (5) TMI 448
X X X X Extracts X X X X
X X X X Extracts X X X X
....d the Learned Representative of both the parties and perused the material available on record. 3. The brief facts of the case are that the assessee filed return of income declaring income of Rs. 38,82,621/- on 21.07.2009. In this case information was received from the O/o. DDIT (Inv.)-I, Faridabad through DCIT-1, Central Circle, Chandigarh that during the course of survey conducted on the above assessee as well as other Group Promoter of Lingaya Group Society on 30.06.2014/ 01.07.2014, various incriminating documents were found, examined and impounded. As per investigation reports received, Shri Pischeswar Gadde and Smt. Sunita Gadde [Assessee] had paid a consideration of Rs. 3.15 crores towards purchase cost of farm house bearing No.1, De....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed that husband of the assessee Shri Picheswar Gadde who is also co-owner of 50% share in the property in his statement recorded during the course of survey admitted that he has sold the property to M/s. Mapple Destination Dreambuilt P. Ltd., for an amount of Rs. 6.61 crores, out of which, part amount was paid through cash and part was paid through cheque and admitted to pay taxes thereon. The A.O. also noted that Shri Rakesh Sejwal, Manager of Lingaya's Society who was assigned the work of record keeping of various transactions of properties carried out by Lingaya's Group of Society or by husband of the assessee and assessee, has confirmed the collecting cash of Rs. 5.41 crores on sale of property on behalf of assessee and her husband. Th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e, reopening of the assessment have been quashed. He has also submitted that in the case of assessee also earlier assessment have been done under section 143(3), but, he was not able to furnish copy of such assessment order under section 143(3). Learned Counsel for the Assessee referred to the reasons recorded by the A.O. for reopening of the assessment copy of which is filed at page-7 of the PB in which A.O. has specifically mentioned that in the case of assessee for the assessment year under appeal no Order under section 143(3) was passed. In view of these facts, it is clear that the Order in the case of husband of the assessee Dated 20.01.2021 would be of no help to the assessee. Therefore, the contention of assessee is rejected that th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o PB-19 letter Dated 15.11.2016 addressed to the A.O. in which also assessee requested that cross-examination to the statement of Smt. Jaya Sharma be provided to assessee and she denied any cash payment. He has also referred to PB-21 which is another letter Dated 21.11.2016 addressed to the A.O. in which assessee similarly requested for cross-examination to the statement of Smt. Jaya Sharma before taking any adverse view against the assessee. PB-23 is registered sale deed Dated 30.05.2008 in which consideration of Rs. 1.05 crores is paid have been mentioned through banking channel. He has also referred to PB-47 which is letter addressed to the A.O. Dated 19.12.2016 in which again the assessee similarly made a request to the A.O. that before....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sband. The Ld. D.R, therefore, submitted that these statements are sufficient to establish that assessee and her husband have paid cash on account of entering into sale transactions. Therefore, addition is wholly justified. The Ld. D.R. also submitted that retraction statement of Smt. Jaya Sharma-Seller is of no consequence in the matter. 8. We have considered the rival submissions and perused the material on record. The above facts clearly show that Revenue has made an addition of Rs. 1.05 crores against the assessee solely relying upon statement of Smt. Jaya Sharma-Seller recorded under section 131 of the I.T. Act, 1961, in which she has admitted to have received cash from the assessee and her husband on account of sale of property at D....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sessee, unless the same is confronted to the assessee and that assessee should be allowed to cross-examine to such statements. In this case, the A.O. has failed to produce Smt. Jaya Sharma before assessee for cross-examination on behalf of the assessee particularly when Smt. Jaya Sharma has retracted from her statement. Therefore, in these circumstances, it was the duty of the A.O. to produce Smt. Jaya Sharma at the reassessment proceedings to allow cross-examination to her statement on behalf of the assessee. Therefore, such statement and material collected at the back of the assessee, cannot be read in evidence against the assessee. We rely upon the Judgments of Hon'ble Supreme Court in the cases of Kishan Chand Chellaram 125 ITR 713 (SC....