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| The Tax Publishers2019 TaxPub(DT) 5391 (Visakhapatnam-Trib) INCOME TAX ACT, 1961
Section 69
When statement of seller was solely relied on by AO, it was the duty of AO to provide assessee an opportnity to cross examine the seller, however, no such opportunity was given, accordingly, in the absence of property enquiry and suficient evidence, addition made based on mere admission by third party could not be sustained.
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Income from undisclosed sources - Addition under section 69 - Allegation of on money payment solely based on statement of third party - No opportunity of cross-examination given to assessee
AO on the basis of statement recorded by Investigation Wing during search in case of certain party, made addition on account of on-money paid by assessee towards purchase of certain property.Held: When statement of seller was solely relied on by AO, it was the duty of AO to provide assessee an opportnity to cross examine the seller, however, no such opportunity was given, accordingly, in the absence of property enquiry and suficient evidence, addition made based on mere admission by third party could not be sustained.
Relied:Andaman Timber Industries v. CCE [Civil Appeal No. 4228/2006, Order, dated 2-9-2015] : 2015 TaxPub(DT) 5186 (SC) and Sri Venkata Rama Sai Developers Visakhapatnam v. Dy. CIT [ITA No. 453/VIZ/2012, dated 6-11-2015].
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
IN THE ITAT, VISAKHAPATNAM BENCH
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