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2014 (9) TMI 275 - AT - Income TaxUnexplained cash credit/debits – unexplained investment - Held that:- The addition was based on certain entries reflected and retrieved from a pen- drive recovered from Shri Chetan Gupta – revenue was of the view that the seized pen-drive contains computerized accounts of hawala transactions of about 148 people including the account of the assessee, whose identity was denominated as “BIBA” & “KIRAN BIBA” - it does not stand established that the assessee has made the investment - the burden to establish the existence of investment was on the Revenue, which has not been discharged – relying upon CIT Vs. Ashwani Gupta [ 2010 (2) TMI 42 - DELHI HIGH COURT] - once there was violation of the principles of natural justice, in as much as seized material was not provided to an assessee nor was cross-examination of the person on whose statement the AO relied upon granted, then deficiencies would amount to denial of opportunity and would be fatal to the proceedings. The information received by the AO from his investigation Wing, at best, be regarded as a prima-facie material, but could not be construed as conclusive for use against the assessee to fasten any tax liability, because the same was required to be corroborated by credible and independent evidence or was required to be tested in cross-examination by the assessee, quite clearly none of these aspects have done by the Revenue in this case - the Revenue has not proved that the investment has been made by the assessee - the essential pre-requisite of Section 69 of the Act is not satisfied in this case – Decided against revenue.
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