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2021 (9) TMI 989 - AT - Income TaxReopening of assessment u/s 147 - specific information received by the ld.AO on the basis of search conducted in some other cases - addition made for the alleged ‘on-money’ - HELD THAT:- The seized documents revealed the details of assessee having transacted with the searched parties and the same formed the basis for issuance of notice u/s 148 - Under these given facts, we are of the view that Ld. CIT(A) has rightly dismissed the assessee’s legal ground challenging the validity of assessment proceedings u/s 147 of the Act holding that the notice u/s 148 of the Act has been rightly issued. CIT(A) has rightly dismissed the assessee’s legal ground challenging the validity of assessment proceedings. Addition made without providing the opportunity of cross examination of the search parties to the assessee before making impugned addition - The registered documents for the purchase of plot of land shows that the consideration is not less than the guidelines rate and both buyer and seller have agreed to this consideration. Assessee has seeked opportunity for cross examination of the searched person, during the proceedings before the Ld. CIT(A) and the same was ignored. We, observe that such action of the Ld. Assessing Officer of making addition in the hands of assessee based on 3rd party statement/evidence cannot withstand unless proper opportunity of cross examination is provided to the assessee. See ANDAMAN TIMBER INDUSTRIES VERSUS COMMISSIONER OF CENTRAL EXCISE, KOLKATA-II [2015 (10) TMI 442 - SUPREME COURT]. Assessee has not been provided any opportunity of cross examination of the parties who have stated to have received ‘on money’ from sale of land. We, thus, set aside the finding of Ld. CIT(A) and delete the addition. - Decided partly in favour of assessee.
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