Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 773 - ITAT VISAKHAPATNAMAddition on account of unexplained source of investment - seller declared higher price of sales value including cash deposited in account and offered for capital gain and also make statement - no opportunity for cross examination was provided - HELD THAT:- In the present case, except statement of Sri Ganta Punna Rao, no other evidence is available on record that the assessee has paid the amount more than the sale consideration. That apart, when the statement of the seller is solely relied on by the AO, it is the duty of the AO to ask the assessee that the seller has stated that he received sale consideration more than the documented price and ask the assessee if he wanted to cross examine, to provide an opportunity to cross examine the seller. In the present case, no such opportunity has been given by the AO to the assessee. We find that the observation made by the ld. CIT(A) is baseless and it cannot survive in judicial scrutiny for the reason that there is no agreement in respect of the assessee, however, he further mentioned that the seller is a habit of taking on money, therefore he came to a conclusion that assessee also paid on money. The above observation given by the ld. CIT(A) is without any basis and cannot be accepted. From the observations of the ld. CIT(A), it is very clear that the seller of the property-Sri Ganta Punna Rao is accepting on money from other persons, therefore, the deposits made in his bank account, cannot be concluded that the amount paid by the assessee. It can be also said that the amount deposited in the bank account is anybody’s amount because no details are available with regard to what is the amount received and what is the amount deposit. In view of the decision of the Hon'ble Supreme Court in the case of M/s. Andaman Timber Industries [2015 (10) TMI 442 - SUPREME COURT] and also the decision of the coordinate bench of the tribunal in the case of Sri Venkata Rama Sai Developers [2015 (11) TMI 1608 - ITAT VISAKHAPATNAM] and also by considering the facts and circumstances of the case, we find that the orders passed by the AO and ld.CIT(A) cannot survive. - appeal filed by the assessee is allowed
|