TaxTMI 
TaxTMI 
2026 (3) TMI 1176
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....s liable to be quashed and void-ab-initio. 2. Without prejudice to above, on the given facts, circumstances and judicial pronouncements, CIT (Appeals) has erred in confirming the action of Ld. Assessing Officer of reopening the case u/s 148 as reopening u/s 148 is beyond jurisdiction & bad in law. Therefore order passed u/s 147 is liable to be quashed and void-ab-initio. 3. Without prejudice to above, on the given facts, circumstances and judicial pronouncements, CIT (Appeals) has erred in confirming the action of Ld. Assessing Officer of reopening the case u/s 148 as the same is without complying the provisions of section 151. Therefore order passed u/s 147 is liable to be quashed and void-ab-initio. 4. On the given facts, circumstances and judicial pronouncements, CIT (Appeals) has erred in confirming the action of Ld. Assessing Officer by making addition of Rs. 21,99,000/- u/s 69B. Such confirming of addition u/s 69B is bad in law and addition is liable to be deleted. 5. On facts and circumstances, Ld. CIT(A) has erred in confirming the addition without providing cross examination which is against the principle of natural justice. Such additio....
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....e submissions made by the assessee, however he noted that on verification of index-II, it was found that market value of property was Rs. 37,20,500/-, as against the agreement value of Rs. 29,50,000/-. He also referred to the admission made by one, Shri Kulin Shantilal Vora, who looks after the sales of all the projects of M/s. Bhagawati Developers and its group concerns whose statement was recorded under oath during the search and survey action. By placing reliance on the said statement and seized material found during the course of search of the builder, ld. Assessing Officer came to a conclusion that assessee had made undisclosed investment and thus, passed an order u/s. 148A(d) for issuing notice u/s. 148. Notice u/s. 148 was issued on 08.04.2022 in response to which assessee filed his return of income on 23.05.2022 reporting total income at Rs. 5,00,130/-. 3.2. Case of the ld. Assessing Officer is that a search and seizure operation was conducted on M/s. Bhagawati Developers and its group concerns. One of the concerns covered in the search operation is M/s. Patel Enterprises which is a firm and Shri Kulin Shantilal Vora is its partner. Sale agreement of shop purchased by th....
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.... ld. Assessing Officer after duly considering it on the ground that the statement of Shri Kulin Shantilal Vora was for all sales made by the group and the on money received by them from multiple parties and the assessee was one of those who had paid on money. He stated that ld. Assessing Officer had referred to human probability in respect of the alleged transaction. He thus, concluded that the facts were confronted to the assessee and he was given opportunity of being heard and therefore, it was not necessary to cross examine. Accordingly, addition made by the ld. Assessing Officer was sustained, by dismissing the appeal filed by the assessee. Aggrieved, assessee is in appeal before the Tribunal. 5. Before us, ld. Counsel for the assessee emphasized on the fact that assessee had been repeatedly, right from the first submission made in response to notice u/s. 148A(b), seeking the details and material which were relied upon for the allegation of payment of on money in cash by the assessee, as well as asking for cross examination of the person whose statement were relied upon which were recorded during the course of search proceedings of the builder and its group concerns. Specifi....
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....antilal Vora, which also has not been confronted to the assessee for cross examination. We note that since the assessee was not provided with the adverse material, it hampers the primary and fundamental requirements of principles of natural justice. The reason given by ld. Assessing Officer for denying the opportunity of cross examination of Shri Kulin Shantilal Vora is that, his statement is for all the sales made by the group and the group concerns in respect of on money received by them from multiple parties. The statement is not on specific mention of assessee, since it refers to all the sales made on which on money was received from various parties. Such an observation and reasoning given by ld. Assessing Officer, brings out the fact that there is no specific mention of the assessee in the statement recorded during the course of search which forms the sole basis for the ld. Assessing Officer to make addition in the hands of the assessee. 6.1. We find that, at best, such a statement can raise a doubt or suspicion against the conduct of the assessee to trigger further enquiry or investigation for finding out and bringing on record relevant fact and material, so, as to conclus....