2009 (1) TMI 76

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....e declared income of the respondent-assessee, namely, a sum of Rs.2,12,750 allegedly earned by the assessee as a consequence of purchase/sale of shares, a sum of Rs.1,03,317 alleged to be unexplained credits found in the bank account of the respondent-assessee, as also a sum of Rs.30,000 allegedly paid by the respondent-assessee for the purchase of a plot. 2. It is not a matter of dispute that while arriving at the aforesaid conclusions the Assessing Officer recorded at the back of the respondent-assessee, statements of Shri H.S.Maheshwari, Shri Parveen Mittal, Shri Sanjay Hasija and Shri Rajinder Gulati. It is also not a matter of dispute that before the aforesaid statements could be taken into consideration, it was imperative for the A....

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.... of arriving at the conclusion that additional income earned by the respondent-assessee, had not been depicted in the return filed by him.  5. Being aggrieved with the order passed by the Commissioner of Income- tax (Appeals) dated 15.9.2004, the Revenue preferred an appeal before the Income-tax Appellate Tribunal. For the same reasons, as had been depicted in the order passed by the Commissioner of Income-tax (Appeals) dated 15.9.2004, the Income Tax Appellate Tribunal, also passed an order dated 7.12.2005. Consequent upon the dismissal of the appeal preferred by the Revenue at the hands of the Income Tax Appellate Tribunal, vide order dated 7.12.2005, the Revenue has approached this Court. 6. Through the instant appeal, the Rev....

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.... 9. We find merit in the aforesaid submission of the learned counsel for the appellant. The Assessing Officer had failed to afford an opportunity to the respondent-assessee to cross-examine the persons whose statements were recorded by him, before passing the assessment order under section 143/147 of the Income-tax Act, 1961, on 31.3.2004. The action of the Assessing Officer was unacceptable in law. Naturally, there was nothing wrong up to the stage of recording the statements of the four persons referred to above. The proceedings conducted by the Assessing Officer after recording the statements of the aforesaid individuals are liable to be set aside. The same alone are therefore, set aside. It will be open to the Assessing Officer to rei....