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| The Tax Publishers2019 TaxPub(DT) 7136 (Del-Trib) INCOME TAX ACT, 1961
Section 68
Denial of opportunity to assessee to cross-examine witness whose statements were made sole basis of addition was a serious flaw rendering the order as nullity in as much as it amounted to violation of principles of natural justice. Moreover, when addition had not been made in the hands of buyer, who was the source of cash payment to seller (assessee), no addition could be made in the hands of assessee.
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Income from undisclosed sources - Addition under section 68 - AO alleging receipt of on-money by assessee on sale of property - No opportunity to cross-examine the withness given to assessee
AO based on statement recorded by investigation wing in case of one 'H' made addition in assessee's hands towards unaccounted sales consideration recived against sale of property.Held: When addition had not been made in the hands of the buyer, who was the source of cash payment to seller (assessee), no addition could be made in the hands of assessee. Even otherwise, the only evidence available with AO was statement of 'H' which had been used against assessee making the addition and assessee had requested for cross-examination of 'H', however, same had been denied. Denial of opportunity to assessee to cross-examine witness whose statements were made sole basis of addition was a serious flaw rendering the order as nullity in as much as it amounted to violation of principles of natural justice.
Relied:Andaman Timber Industries v. CCE (2015) 281 CTR (SC) 241 : 2015 TaxPub(DT) 5186 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11
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