TaxTMI 
TaxTMI 
2025 (12) TMI 296
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....No. 177 Of 2025, R/Tax Appeal No. 178 Of 2025, R/Tax Appeal No. 210 Of 2025, R/Tax Appeal No. 212 Of 2025, R/Tax Appeal No. 215 Of 2025, R/Tax Appeal No. 218 Of 2025, R/Tax Appeal No. 219 Of 2025, R/Tax Appeal No. 220 Of 2025, R/Tax Appeal No. 221 Of 2025, R/Tax Appeal No. 222 Of 2025, R/Tax Appeal No. 223 Of 2025, R/Tax Appeal No. 224 Of 2025, R/Tax Appeal No. 226 Of 2025, R/Tax Appeal No. 227 Of 2025, R/Tax Appeal No. 228 Of 2025, R/Tax Appeal No. 229 Of 2025, R/Tax Appeal No. 230 Of 2025, R/Tax Appeal No. 231 Of 2025, R/Tax Appeal No. 232 Of 2025, R/Tax Appeal No. 234 Of 2025, R/Tax Appeal No. 235 Of 2025, R/Tax Appeal No. 236 Of 2025, R/Tax Appeal No. 238 Of 2025, R/Tax Appeal No. 242 Of 2025, R/Tax Appeal No. 243 Of 2025, R/Tax Appeal No. 271 Of 2025, R/Tax Appeal No. 273 Of 2025, R/Tax Appeal No. 275 Of 2025, R/Tax Appeal No. 276 Of 2025, R/Tax Appeal No. 278 Of 2025, R/Tax Appeal No. 382 Of 2025, R/Tax Appeal No. 383 Of 2025, R/Tax Appeal No. 384 Of 2025, R/Tax Appeal No. 385 Of 2025, R/Tax Appeal No. 386 Of 2025. Appearance: For the Appellant(s) No. 1: Mr Rk Patel, Senior Advocate With Mr Darshan R Patel (8486). For the Opponent(s) No. 1: Mr. Varun K. Patel (3802).....
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....lure to give the opportunity of cross-examination of one Shri Hiren Kalariya. We may, at this stage, mention about the role attributed to Shri Hiren Kalariya from whom certain incriminating documents/assets were found and seized during the search and post-search inquiries. Thus, all the orders passed by the Commissioner of Income Tax (Appeals) and the Assessing Officers emanate from the search conducted at the premises of Shri Hiren Kalariya, where certain incriminating documents were found and seized. The search was conducted along with the group cases of Coral Group of Morbi, which commenced from 3.1.2019 and was finally concluded on 2.3.2019, in all the group cases. During the course of search at the residential premises of Shri Hiren Kalariya, various diaries and loose paper sheets containing details of various cash transactions pertaining to group companies and with other entities, were found and seized. It is pertinent to note that his statement was recorded under Section 132(4) of the Income Tax Act, 1961 and he had explained the detailed modus operandi adopted by him to assist the group companies and other persons in collection of proceeds of unaccounted sales. The entire m....
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....rch investigation, Shri Hiren Kalariya has admitted that modus operandi of his business activities, which also found recorded in various diaries and loose papers seized from his premises. The Assessing Officer has also noted in the assessment order that some of the beneficiaries whose names are mentioned in the seized diaries admitted that they had received cash Shri Hiren Kalariya. Thus, where the addition is made by the Assessing Officer, based on the documentary evidences, and these documentary evidences, speak clearly, then there is no need to provide opportunity for cross-examination. It is pertinent to note that Shri Hiren Kalariya recorded the names of the parties in his diaries as he knew the beneficiaries. Even in respect of representatives coming to collect cash on behalf of beneficiaries, Shri Hiren Kalariya clearly linked the names of such representatives with the respective beneficiaries in his statements recorded. Thus, Shri Hiren Kalariya had full knowledge of the persons with whom he was dealing as a commission agent and whose representatives' names are mentioned in the seized diaries. Further, in respect of such transactions of undisclosed sales and receipts thereo....
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....rovert the material gathered by the search team and Assessing authority and used against it, then there had been compliance of the principle of natural justice. Having gone through the above findings of the ld. CIT(A), we observed that there was no need to provide opportunity of cross- examination, as the addition was made by the Assessing Officer, based on the documents and evidences seized during the search. Considering the above factual position, we reject the plea raised by the ld. Counsel for the assessee, in respect of cross-examination. Hence, grounds raised by the assessees, relating to cross examination, are dismissed." 11. A bare perusal of the aforesaid observations of the Tribunal will expose that, though the Tribunal was aware about the importance of cross-examination of the witness, very curiously, the Tribunal dealt with the issue of non-cross-examining of Shri Hiren Kalariya by recording that since the Assessing Officer has based his findings on documentary evidence and since the documentary evidence speaks clearly, there is no need to provide the opportunity for such cross- examination. Simultaneously, it is also observed by the Tribunal that Shri Hiren Kalariya....