TaxTMI 
TaxTMI 
2025 (9) TMI 212
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.....s. 147 of the Income-tax Act (hereinafter referred to as the "Act"), dated 08.12.2017 for Assessment Year 2015-16. 2. Grounds taken by the assessee are reproduced as under: 1. On the facts and circumstances of the case as well as in Law the Learned Assessing Officer has erred in reopening assessment u/s 147 of the Act. The reopening of assessment u/s 147 of the Act directed by the Learned Assessing Officer, sustained by the Hon'ble Commissioner of Income Tax (Appeals), NFAC, is unfair and illegal and needs to be struck down. 2. On the facts and circumstances of the case as well as in law the Learned Assessing Officer has grossly erred in directing addition u/s 69C of the Act amounting to Rs. 54,95,000/-. The disall....
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....7 of the Act. According to the ld. Assessing Officer, the agreement value for the purchase of shop No.G-06 was Rs. 1,35,04,500/- whereas total amount paid by the assessee was Rs. 1,89,00,000/- which includes cash of Rs. 54,95,000/- as "on money". Assessee was called upon to furnish explanation in this respect which was duly complied with, though ld. Assessing Officer observed that she did not file any details of source of such payment of "on money" is concerned. Ld. Assessing Officer further, noted that assessee had paid the "on money" which is based on information received by him about the material seized during the course of search u/s.132, in the case of Runwal Group and statement recorded of Shri Subodh Runwal, Director of Runwal Homes ....
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....nfirm that we had sold Unit No G-06 in Runwal Greens Project for total consideration of Rs. 1,34,04,500/- as per Registered Agreement dated 14/07/2014. We received payment through banking channel, details of which are as under :- Date Amounts (Rs) Chaque No Name of Bank 13/06/2014 25,00,000 100034 The Kurla Nagarik Sahakarl Bank 13/06/2014 25,00,000 100035 The Kurla Nagarik Sahakari Bank 23/06/2014 50,00,000 100036 The Kurla Nagarik Sahakarl Bank 19/09/2014 10,00,000 100043 The Kurla Nagarik Sahakari Bank 21/12/2015 29,01,537 100052 The Kurla Nagarik Sahakari Bank We further confirm that in case of above party, we have not received any payment, through any mode....
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....tatus. To this effect, ld. Counsel asserted that the in the entire proceedings, nowhere it has been brought on record, the contents of the statements so made which forms the sole basis for making the addition in the hands of the assessee. According to the ld. Counsel, it is important to take note of the contents of the statement vis-à-vis clarification given by it in its letter issued to the assessee on 13.12.2017 wherein it is mentioned that this statement was nothing but a forced confession which it has not accepted and the matter is pending before the appellate authorities. Thus, ld. Counsel strongly contended that the findings arrived at by both, ld. Assessing Officer and Ld. CIT(A) are not based on any cogent and convincing evid....
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....sion of "on money" paid by the assessee in cash nor he has given any opportunity to the assessee to cross examine the said party before taking such an adverse view. It is important to note that statement by Shri Subodh Runwal, Director of the Runwal Homes Pvt. Ltd. was not deposed before the ld. Assessing Officer himself but was during the course of search in their case on 21.11.2014. Further, ld. Assessing Officer himself has not made any specific investigation on his own accord, leaving the underlying evidence un-examined, more particularly without giving fair opportunity to the assessee. 7.2. We also take note of the fact that ld. CIT(A) has ignored the confirmation letter issued by the builder i.e., Runwal Homes Pvt. Ltd., clarifying....
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....ded to make the addition based on the above declaration of receipt of "on money" in the hands of the flat owners. Assessee being one of the flat purchaser, the assessment was reopened. However, no effective cross examination opportunity was given to the assessee. 7.5. Reliance was placed on the Hon'ble Supreme Court judgment in Andaman Timber Industries [2015] 281 CTR 241. The Hon'ble Supreme Court held that when the assessment is made on the basis of statements recorded from third parties and if those statements were not provided nor cross examination was given to the assessee, the assessment order made based on those statements is bad in law. Further, reliance is placed on the following judicial pronouncements for the propositi....