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2016 (1) TMI 490 - AT - Income TaxExcess consideration received treated as “on money” - Held that:- In the present case, the materials based on which the additions have been made namely the data obtained from external sources does not seem to have been confronted to Assessee. It is pertinent to observe that for adjudicating any controversy, the adjudicator is required to follow either deductive reasoning method or inductive reasoning method. In the first principle the adjudicator will draw inference in support of his conclusion based on the material already available on record, under the 2nd method, in support of his conclusion, he will induct some material namely data, commentary about any concept etc. In the present case, ld. CIT(A) has followed the 2nd method but failed to establish the nexus from that material vis-à-vis the case of the Assessee while arriving at the conclusion and secondly, as observed earlier, failed to provide opportunity of hearing to the Assessee on that material. In view of these facts, we are of the view that the matter needs to be readjudicated by ld. CIT(A) by following the principles of natural justice. Needless to state that ld. CIT(A) shall grant adequate opportunity of hearing to the Assessee. The Assessee shall also be free to place any submissions or details in its support to present its case. - Decided in favour of assessee for statistical purposes.
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