2026 (4) TMI 548

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....er passed by the CIT(A) confirming the addition of Rs. 20,00,000/- made by the AO on account of the allegation that the assessee has paid a sum of Rs. 20,00,000/- to Omaxe Group for purchase of property during the AY 2020-21 despite the fact that no such payment was made by the assessee and there is no evidence, whatsoever, in respect of said payment having been made in the AY 2020-21. The assessee has made detailed argument and submitted evidences and explanation in support of its contention that no such payment has been made. However, AO has brushed aside the contention which has also been confirmed by the CIT(A) ignoring the facts of the case. 3. The AO has solely relied on the excel sheet recovered by the investigation Wing from Omax....

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....ts business. Moreover, the aforesaid statements have been collected at the back of the assessee without giving the assessee an opportunity to examine the same. 6. Further, there is nothing on record to demonstrate how these statements were utilized to draw any adverse inference against the assessee. It is also pertinent to note that the principles of natural justice form an integral part of procedural fairness and justness, thereby excluding the scope of arbitrariness. 11. Moreover, the assessee was debarred of any opportunity provided to cross examine the statements of such witnesses. The said action of the Id. AO is in sheer violation of principal of natural justice. The assessee's request for the cross examination of the person fr....

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.....01.2007, and brought back on 30.01.2020, the Investigation Wing's theory were correct, the amount should have been taxed in FY 2005-06, not FY 2019-20. The allotment letter was issued on 16.01.2020, making it irrational for a cash payment to be recorded 15 days later on 30.01.2020, as such components are typically paid simultaneously with the allotment. No clarification has been even given in the statement of the third party regarding the cash received by Omaxe Ltd. specifically by assessee. It was nowhere specifically stated about receiving any cash payment from assessee. Moreover, no other document has been provided by AO regarding the receipt of such cash amount such as Day Book, Vouchers, Loan receipt ledgers or any other agreement....

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....ertain information that the assessee paid cash of Rs. 8 Lacs to M/s Omaxe Ltd. in lieu of purchase of shop besides making payment through banking channels, the case of the assessee was reopened and notice u/s 148 was issued on 15-03-2024, The said information stem from search action by the department on Omaxe group and statement recorded from officers of that concern us 132(4) of the Act. It transpired that the assessee purchased a shop from Omaxe group in its project situated at Mullanpur. In reply to show-cause notices of Ld. AO, the assessee contended that all the payments were made through banking channels and denied having made any cash payment in the said transaction. The details of payments as made by the assessee were also furnished....

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....ion of principle of natural justice. In my considered opinion, the onus was on Ld. AO to prove with cogent evidence that cash was exchanged in the transaction. The assessee has fumished all the documentary evidences as available with him to support the contention that all the payments were made through banking channels only. The confirmation of payment has duly been furnished by the assessee from M/s Omaxe Ltd. which is kept on Page No.30 of the paper book. The payments are duly supported by bank statements and the same are reflecting in Form No. 26AS of the assessee. The assessee has filed affidavit to the effect that no cash has even been paid to M/s Omaxe Ltd. The assessee could not be asked to prove the negative. In my opinion, the asse....