TaxTMI 
TaxTMI 
2025 (3) TMI 1914
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion u/s. 147 which has been entered upon on the basis of borrowed satisfaction and hence the reopening is bad in law 2. The Ld CIT(A) has, with respect, ignored that the Ld. AO has proceeded on borrowed satisfaction and without independent inquiries, which is evident from the difference in the figure of escaped income mentioned in the reasons recorded and in the Assessment Order. 3. The Ld. CIT(A) fell in error of law in not appreciating that the Appellant/assessee had not been provided with relevant documentary evidence pertaining to the search. 4. The Ld. CIT(A) failed to appreciate that the entire addition was made on the basis of material supposedly found with the person searched which cannot be relied upon wi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ment of Shri Hiren, Bharani was recorded u/s 132(4) of the act, wherein he had admitted that he had received on money in cash on account of sale of flats of all the projects. In this regard, he had also furnished project wise list of flats in which on money in cash had been accepted by the authorised partner/partner of Sabri Group. Therefore on the basis of said statement, it was noticed by the AO that the assessee has booked flat No. 1005, in Sabari Shaan and had paid on-money in cash of Rs. 23,40,000/- to M/s Shankheshwar Properties Private Limited for booking and purchasing the said property. 6. Whereas the contrary, from the very beginning the stand of the is clear that AO that he had not paid any on money in cash for the purchase of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....3646/MUM/2023 in the case of Kundan Raghuveer Vs. ITO wherein it was held as under: 18. Considered the rival submissions and material placed on record, we observe that there was a search action in the case of the builder Shri Kulin S Vora and in that case the builder has accepted that they have received on-money from the various projects conducted by them and he has disclosed the name of all the flat owners. The Tax Authorities proceeded to make the addition based on the above declaration of receipt of on-money in the hands of the Flat Owners. Assessee being one of the flat purchaser, the assessment was reopened. However, no cross examination opportunity was given to the assessee. In this case, no such opportunity was gran....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bad in law which was made purely on the basis of assumption and unverified statement of the third party. Accordingly, appeal filed by the assessee is allowed. 7. After having considered the facts of the present case and also the judgement cited before me, I am of the view that it is the duty of tax authorities if they want to rely upon statement to arrange for the cross examination of the said persons and an opportunity to cross examine should in this regard be extended to the assessee. 8. Further, AO is under an obligation to supply the material to the assessee, which he is relying upon for making the additions. But as per the facts of the present case none of those legal obligations have been discharged by the Ld.AO. Hence the addit....