2026 (3) TMI 802

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.... the Act pertaining to Assessment Year 2019-20. 2. Brief facts of the case are that based on the documents found during the course of search carried out in the case of Shri Krishna Sharma and Smt. Sheetal Sharma on 02.02.2022, case of the assessee was re-opened u/s 147 of the Act, since as per seized documents titled as page 6 & 7 of Annexure A-2, it is found that assessee has purchased property alongwith his brother, Shri Gaurav Gupta for which payments of INR 15 Lakhs was made though cheque and INR 12.50 Lakhs was paid in cash. Accordingly, AO passed the reassessment order dated 06.03.2024 u/s 147 by making addition of INR 6.25 Lakhs being assessee's share of 50% in the cash payment as undisclosed investment u/s 69B r.w.s. 115BB of the....

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....he documents, assessee alongwith his brother has purchased a property for INR 15 Lakhs and paid his share of INR 7.50 Lakhs through banking channel. In the said paper, a sum of INR 12.50 Lakhs is mentioned in the last Column. However, nowhere in the assessment order, it is observed by AO that this amount of INR 12.50 Lakhs was paid by the assessee alongwith his brother as cash nor any statement of any persons confirming that these facts were brought on record. The Co-ordinate Bench of the Tribunal in the case of brother of assessee, Shri Gaurav Gupta in ITA No.31/DDN/2025 has deleted the addition by making following observations:- 5. "The Ld. Counsel for the Assessee addressing on Ground No. 3 and Ground No. 5 submitted that the au....

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....ishna Sharma. However, the Ld. CIT(A) held that the opportunity of cross examination is not a compulsory requirement before deciding the matter. 9. 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 g....