TaxTMI 
TaxTMI 
2026 (7) TMI 1632
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....- and accordingly denies the liability to pay tax, interest and penalty thereon. 2. That having regard to the fact and circumstances of the case, Ld. AO has erred in law and on facts in assuming jurisdiction to issue notice u/s. 148 of the Income Tax Act, 1961 (the Act) and to frame assessment u/s. 147 of the Act and that too without observing the statutory conditions as mentioned in the Sections 147 to 151 of the Act. 3. That Ld. AO has erred in law and on facts in assuming jurisdiction to issue notice u/s. 148 and to frame assessment u/s. 147 of the Act when the necessary sanctions and approvals as required in the Sections 147 to l51 of the Act were not obtained. 4. That ld. AO has erred in law and on facts in assuming jurisdiction to issue notice u/s. 148 without giving any notice u/s. l48A or passing order under that section. 5. That Ld. A.O. has erred in law and on facts in passing order u/s. 147 when the approval granted by worthy Additional Commissioner of Income Tax, Range-l, Faridabad u/s. 148B r.w.s. 152 (3) of the Act in mechanical manner is bad in law and against the law and the assessment order passed by Ld. Assessing Officer u/s. 14....
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....uments related to assessee was also found and seized during the course of search operation, which was shared with the AO. Based on this information, assessee's case was reopened u/s. 147 of the Act on 21.03.2024. 6. He submitted that during the course of search proceedings on 'Omaxe Group', comprehensive data on unaccounted transactions undertaken by 'Omaxe Group' entities were found to be recorded in "MAIN REPORT" excel files. These files contained bank account statements of different entities of 'Omaxe Group', oral evidences of its employees, statements recorded under oath of its customers etc. The post search investigations led to the following conclusions: (i) The data contained in the "MAIN REPORT" Files was related to various companies of OMAXE GROUP. (ii) The "MAIN REPORT" Files contained only the unaccounted cash transactions pertaining to various companies of OMAXE GROUP, (iii) The dates of unaccounted cash transactions mentioned in the ""MAIN REPORT" excel files for the period prior to 01 Aug 2018 were back dated by 10 years. (iv) The amounts mentioned in the excel sheets were suppressed by a factor of 100, i.....
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....rns. The investigation report also made a finding that the recordings in the excel files of "MAIN REPORT", contained figures with a suppression of a factor of 100. The cash slips issued to the customers which contained actuals figures was compared with the recordings in the "MAN REPORT", and was found that the figures were suppressed by a factor of 100. This was elaborated in pages 32 & 33 of the assessment order. He submitted that such kind of suppression of amount was admitted by Shri. Manish Kumar, president, Omaxe Group in his statement recorded on oath u/s. 132(4) of the Act, dated 15.03.2022. Statements were recorded from employees of Omaxe Group, who also admitted that the entries recorded in excel files of "MAIN REPORT", were not reflected in the actual books of accounts, Thus, it was concluded by the AO that the data in the excel sheet "MAIN REPORT" contained unaccounted transactions, received in cash by Omaxe Group. 11. He submitted that AO further observed that one of the entries in the excel sheet showed that the assessee made a cash payment of Rs. 35,04,000/- towards investment in Unit No. INVF/SCO/331 at a project of Omaxe World Street Pvt Limited (formerly known a....
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....f the statement which are sought to be cross-examined by the assessee. Merely allowing the opportunity to cross-examine a witness without supplying the underlying material shall serve no legal purpose and will merely be a formality. The notice to cross-examine should also afford reasonable time and reasonable opportunity. It has been seen in practice that mechanical opportunities are provided to the assessee to cross-examine the witness or a statement with only one or two days' notice that too without supplying the copies of the alleged material or statement due to which the assessee's are not able to come up to cross-examine such witnesses. In such circumstances, the absence of the assessee can't be treated as denial of cross-examination. Reasonable opportunity does not merely mean an opportunity has to be reasonable. There should be adequate notice. The notice must be of opportunity being given. The sufficient length to enable the defence or the case to be prepared. Not only should a person know the case which is made against him but he must also know what evidence has been considered for drawing a presumption affecting him and he must be given a fai....
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....ts gathered during the course of search on third parties without giving the opportunity to cross-examine the witnesses. In this regard, he brought to our attention to various decisions which are placed at pages 38 to 42 of the paper book and accordingly, pleaded that the ground may be allowed and hold that the assessment thus framed is void and bad in law. 16. On the other hand, ld. DR of the Revenue objected to the submissions of the ld. AR of the assessee and relied on the findings of the lower authorities. 17. Considered the rival submissions and material placed on record. We observed that the impugned addition was sustained solely on the basis of third-party information allegedly found during search proceedings at the premises of Omaxe Group, without any independent corroborative evidence linking the assessee to any actual cash payment. Further we observed that the said Excel sheet does not bear the signature of the assessee; is not authored by the assessee; does not constitute books of account of the assessee; is not supported by any signed receipt or acknowledgment, and therefore cannot, in isolation, form the sole basis of addition under Section 69 of the Act. Further ....