Assessment Order Under Section 56(1)(vii) For Rs. 139.67 Crores Quashed Due To Uncorroborated Third-Party Search Evidence

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....ITAT quashed assessment order regarding additions under section 56(1)(vii) amounting to Rs. 139.67 crores made on basis of third-party documents found during search operations. Tribunal held that search material lacked evidentiary value without independent corroboration, following Supreme Court precedent in Common Cause case. Additional CIT's jurisdiction was challenged due to absence of valid order under section 120(4)(b). Tribunal ruled assessment order void ab-initio, citing TATA Communications Ltd case where similar jurisdictional defect invalidated proceedings. Key factors included lack of corroborative evidence linking documents to assessee, denied allegations regarding pen drive discovery, and failure to allow cross-examination of evidence. Appeal allowed in favor of assessee.....