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2014 (5) TMI 748 - HC - Income TaxValidity of notice u/s 148 of the Act – Reopening of assessment – Held that:- All the noticees were third parties who according to the AO did not respond and could not also be served - The replies made by the third parties are not and could not have been in the possession or control of the assessee - the assessee could not have relied upon them either before the AO or before the CIT (A) - There is nothing to show that the third parties appeared before the CIT (A) - In the absence of the third parties, the contents of the documents could not have been proved - neither the existence of the documents nor the contents were proved - The appellate authority proceeded to reverse the orders u/s 147/143(3) of the Act on the basis of documentary evidence of which neither the existence nor the contents were proved. So-called additional evidence was permitted to be adduced without giving any opportunity to the AO to examine them in gross violation of the principles of natural justice as also the provision contained in sub-rule (3) of Rule 46A - The finding made by the CIT(A) is equally perverse - The genuineness of the transaction was the issue to the knowledge and notice of the assessee – the sale of investment to the tune of ₹ 5,51,420 but cheque deposits were more than crore - The finding of the Tribunal is based on the inadmissible additional evidence adduced by the assessee before the CIT (A) – thus, the order of the Tribunal is set aside – Decided in favour of Revenue.
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