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2021 (4) TMI 44 - AT - Income TaxUndisclosed investments u/s 69B - cash payment against the purchase of the flat which was not recorded in the regular books of accounts - Addition based on documents found in the course of search by DGCEI viz a viz the directors of CPIPL have admitted in their respective statements to have received payment in cash from the assessee - whether the addition can be sustained on the basis of search materials and the statements without providing the opportunity to the assessee for his confrontation/rebuttal? - HELD THAT:- The answer is in negative. The principles of natural justice requires that the assessee should be given the opportunity of placing his points of contentions with respect to search materials and the statements based on which additions were made. In holding so we draw support and guidance from the judgment in the case Heirs and Legal Representative of Late Laxmibhai S. Patel [2008 (7) TMI 544 - GUJARAT HIGH COURT] - Also see H.R. MEHTA VERSUS THE ASSISTANT COMMISSIONEROF INCOME TAX, MUMBAI [2016 (7) TMI 273 - BOMBAY HIGH COURT] We hold that no addition can be sustained in the hands of the assessee. As we have decided the issue in favor of the assessee on the preliminary ground as discussed, we are not inclined to decide the issue on merit. Accordingly we set aside the finding of the learned CIT (A) and direct the AO to delete the addition made by him. - Decided in favour of assessee.
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