2026 (3) TMI 808

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....sment Year 2019-20. 2. Brief facts of the case are that, a search operation conducted u/s 132 of the Income Tax Act, 1961 ('Act' for short) was carried out in the case of one, Shri Krishna Sharma & Smt. Sheetal Sharma on 02.02.2022. As per AO, during the search, several incrimination documents, loose sheets, digital devices were found and seized at residential and business premises of Shri Krishna Sharma & Smt. Sheetal Sharma. The case of the assessee was centralized with DCIT(Central Circle), Dehradun vide order dated 15.03.2023 of the Ld. Principal Commissioner of Income Tax, Dehradun. The assessment proceedings were initiated by issuing notice u/s 148 of the Act on 29.03.2023. In response, the assessee complied with the notice....

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....- u/s 69B of the Act relying on the loose sheet of paper which is nothing but 'dumb document'. Further submitted that there is no mentioning of 'cash' payment and the alleged incriminating material being a 'dumb document' which was not corroborated with any of the statement or evidence. Further submitted that though the loose paper was not found from the possession of the Assessee, the Revenue has not provided opportunity for cross-examination. Therefore, submitted that the addition made by the A.O. which has been upheld by the Ld. CIT(A) is liable to be deleted. 5. Per contra, the Ld. Department's Representative submitted that the Assessee admitted the fact of purchase of property and conveniently denied the 'cash payment' for purch....

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....s examination is not a compulsory requirement before deciding the matter. 8. The Hon'ble Supreme Court in the case of Andaman Timber Industries Vs. Commissioner of Central Excise(2015) 62 Taxmann.com (S.C) held as under:- "not allowing the assessee to cross-examine the witnesses by the Adjudicating Authority though the statements of those witnesses were made the basis of the impugned order is a serious flaw which makes the order nullity inasmuch as it amounted to violation of principles of natural justice because of which the assessee was adversely affected. It is to be borne in mind that the order of the Commissioner was based upon the statements given by the aforesaid two witnesses. Even when the assessee disputed the corr....