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2018 (11) TMI 996 - AT - Income TaxAddition u/s 68 - unaccounted money through this transaction or accommodated either M/s Pranav sports or Ahuja’s to bring a unaccounted money to circulation through this transaction - Held that:- The total amount received by the assessee under these 2 transactions, namely, the forfeiture of the advance amount and the sale consideration received from Ahujas is exactly the same as the value of the property that was originally agreed by the parties. This situation justifies the stand taken by the revenue. We are unable to agree with the revenue that this amount of ₹ 2.5 crores has to be taxed in the hands of the assessee or her husband. There is no denial of the fact that out of this ₹ 2.5 crores assessee got ₹ 1.25 crores and her husband got the balance of ₹ 1.25 crores. At no point of time the revenue thought it fit to look into the inconsistency that having accepted the same transaction in the hands of the husband, they’re disputing it in the case of the wife. If we accept the contention of the assessee, it would lead to the inference that either M/s Pranav sports are Ahuja’s that have brought the unaccounted money into circulation. In any event it cannot be said that the assessee had no clue about it. The conclusions drawn by the authorities below, however, are basing on the material that was collected behind the back of the assessee and it is not the case of the Revenue that copies thereof was furnished to the assessee and the assessee was given an opportunity of being heard. There appears violation of principle of natural justice - matter requires verification at the end of the AO after providing the copies of the material which they want to make a basis for their conclusions to the assessee and the assessee is at liberty put forth all have contentions, and, therefore, it is a fit case to set aside the impugned order and to remand the matter to the file of the Assessing Officer to furnish the material that was collected by them and intended to be the basis for any conclusions to be reached to the assessee and to pass orders after affording a reasonable opportunity to the assessee to put forth her case effectively. Appeals allowed for statistical purposes.
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