TaxTMI 
TaxTMI 
2022 (10) TMI 1322
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....case are that the assessee is an individual and is in medical profession. For the assessment year 2006-07 he filed his return of income on 30/10/2006 declaring an income of Rs. 72,45,040/-. Order under section 143(3) read with section 153B of the Income Tax Act, 1961 (for short "the Act") was passed on 31/12/2007 determining the taxable income at Rs. 73,20,940/-. Notice under section 148 of the Act was issued on 28/3/2013 stating that income chargeable to tax has escaped assessment, by communicating the reasons for reopening through letter dated 11/11/2013. 3. Learned Assessing Officer noticed that the assessee is one of the purchasers of Villa plot No. B-33A measuring 763 square yards in Emmar Hills Township from Emmar Hills Township Pv....
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....Learned Assessing Officer did not believe the assessee in his denial to have paid any amount in cash over and above the recorded price and vide order dated 11/3/2014 passed under section 143(3) read with section 148 of the Act noted that,- Sh. Tummala Ranga Rao, seller in charge of the villa plots deposed before the Magistrate in his statement recorded under section 164 Cr. P.C. that he sold the Villa plots at a price higher than the documented price and in the list of 82 plots, the assessee's plot number B33A finds place as having paid Rs. 38,15,000/- in cash; as many as 37 Villa plots purchasers examined by the CBI confirmed the fact of their paying the amounts in cash over and above the recorded price; such Vil....
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....f the Emmar Hills Township; that the learned Assessing Officer did not bring sufficient material on record to prove the unexplained investment under section 69 of the Act by way of evidence of payments/receipt, except the statement made by representative of the marketing agent Emmar Hills Township, Mr T. Ranga Rao and Manager Accounts before the authorities in the case of proceedings against Emmar Hills Township; and that, therefore, by placing reliance on the decision of the Hon'ble High Court of Andhra Pradesh and Telengana in the case of G Mahesh Babu, assessee pleaded that the onus lies on the learned Assessing Officer to prove that the assessee in fact made the payment of open court on money" from undisclosed sources. 7. Ld. CIT(A),....
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....he plot which was chosen by the assessee but offered alternative plot, the assessee declined to accept the same and, therefore, there is no conclusive contract for purchase of any plot whatsoever. According to the Ld. AR unless and until the property is transferred in favour of the assessee, the sale is not conclusive and the sale consideration cannot be determined at any particular rate. 10. With reference to the charge sheet filed by the Directorate of Enforcement in the court of the Special Judge for CBI cases more particularly to the table of details in respect of the plots in purchasers to be found at page No. 27 of the paper book, it is submitted by the Ld. AR that originally plot No. A7 admeasuring 1227 square yards was intended t....
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....e matter may be remanded to the file of the learned Assessing Officer to examine the factual situation in the light of the observations made by the Tribunal in the Hon'ble High Court in the case of G Mahesh Babu. 13. We have gone through the record in the light of the submissions made on either side. There is no denial of the fact that the Ld. CIT(A) sought remand report from the learned Assessing Officer by letter dated 6/6/2016 to afford an opportunity to the assessee to cross examine the person on whose statement the learned Assessing Officer completed the assessment, and the learned Assessing Officer also issued notices to the assessee as well as Mr R. Ranga Rao. There is also no denial that the assessee and Shri Ranga Rao did not re....
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....ile of the learned Assessing Officer to give an opportunity to the assessee to cross examine Mr Ranga Rao. Hon'ble High Court held that in the case of violation of principles of natural justice the order should be set aside and the matter remitted back to the same authority to afford an opportunity to the assessee. 16. In these circumstances, we are of the considered opinion that on the face of the complaint of the assessee that there is violation of principles of natural justice inasmuch as the learned Assessing Officer basing the findings on the statement of Mr Ranga Rao, without affording an opportunity to the assessee to cross examine such Ranga Rao, it would be in the fitness of things to afford an opportunity to the assessee fo....