TaxTMI 
TaxTMI 
2026 (10) TMI 610
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....Section 250 of the Income Tax Act, 1961 arising out of the Assessment Order, dated 28.02.2025 completed under Section 147 of the Income Tax Act, 1961 [hereinafter referred to as 'the Act'] for the Assessment Year 2020-21. 2. The assessee has raised the following grounds of appeal: "1. General Ground The order passed by the Learned Commissioner of Income Tax (Appeals), NFAC, u/s 250 is bad in law, contrary to facts, and liable to be set aside. JURISDICTIONAL GROUNDS 2. The Learned CIT(A) erred in upholding the validity of reassessment u/s 147 without appreciating that the reopening was based on vague, general, and unverified third-party information without establishing a live nexus between the alleged s....
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....epancy was brought on record; * No evidence exists to establish that the appellant actually made any cash payment. 8. The Learned CIT(A) erred in shifting the burden upon the appellant to disprove an unsubstantiated allegation, without the department first establishing the factum of expenditure. 9. The Learned CIT(A) failed to appreciate that entries in the books or loose papers of a third party cannot be treated as conclusive evidence against the appellant without independent verification and corroboration. 10. The Learned CIT(A) erred in drawing adverse inference merely because the appellant had business dealings with Ambica Group, without appreciating that admitted recorded transactions cannot justify ....
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.... * Any other relief deemed fit be granted. LIBERTY 17. The appellant craves leave to add, amend, alter or withdraw any ground at the time of hearing." 3. Since the above grounds involve additions under section 69C and under section 69A of the Act for the sake of brevity all the grounds are taken together. 4. The assessee is an individual engaged in the business of trading in firecrackers under the name and style of "Rocky Traders" and had declared income of Rs. 4,68,050/- under the presumptive provisions of section 44AD of the Act. The reassessment was initiated on the basis of information stated to have been gathered during search and survey proceedings in the Ambica Fireworks Group. After examination of the in....
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....er of the Assessing Officer as well. 8. We have considered the rival contentions and perused the material available on record. It is evident that the foundation of the impugned additions is the alleged entry appearing in the records of a third party. The assessee had specifically requested the relied upon material and an opportunity to cross-examine the concerned persons. The record, however, does not demonstrate that the specific seized document containing the alleged transaction was furnished to the assessee or that effective cross-examination of the persons whose statements were relied upon was afforded. The mere fact that the assessee had certain recorded business transactions with Ambica Ashish Tradelink LLP cannot, by itself, estab....