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2022 (9) TMI 576 - AT - Income TaxAddition of income from other sources u/s 69A - Assessee was found in possession of loose slips - assessee challenged addition as made on assumption and presumption - HELD THAT:- As in the case at hand, it abundantly clear that the appellant was neither found to be owner of any money, Bullion or Jewellery etc., nor there was any value of such assets recorded in the books of account of the Assessee and further the explanation offered relating to the alleged amount supported by the statement of Mrs. Balwant Kaur as proves that no such amount was carried by the appellant to the office of Sub Registrar on 30.08.2010. Accordingly, the addition confirmed by the CIT(A) based on assumption and presumption u/s 69A of the act, without support of any cogent material evidence on record to establish that any disputed cash was found in the custody of the appellant and therefore, in our view, the addition confirmed by the CIT(A) is unjustified, unwarranted and illegal. The same is deleted. Thus ground nos. 3 and 4 are allowed. Addition on account of alleged rented building to UCO Ban - as argued the said income belonged to bigger HUF namely Badri Nath Khanna (HUF) up to 20.03.2014 - HELD THAT:- After the Assessment Year 2001-02, the total income of Badri Nath HUF being below taxable limits, no Income Tax Return was filed. However, it was also explained vide letter stating that after the demise of Sh. Badri Nath Khanna, the property let out to UCO Bank was transferred in the names of Sh. Rajiv Khanna and Smt. Chand Rani his mother, while Badri Nath Khanna HUF still remained undivided. Since, the said HUF got dissolved on 20.03.2014, on the death of Smt. Chand Rani and thereafter, from assessment year 2015-16, the property income from UCO Bank was shown in the hands of the appellant. We hold that the Ld. CIT(Appeal) was not justified in confirming the addition as property income in the hands of appellant. Accordingly, the addition is deleted. Violation of principles of natural justice - Addition relying upon the statement of Mr. Rohtash Kumar recorded, through the commission appointed under section 131(1)(d) at the back of the Appellant without granting the opportunity of cross examination and ignoring the affidavits filed during the assessment as well as appellate proceedings - It is pertinent to mention that addition based on the statement of the person where there was a clear denial of having made any advance was recorded at the back of the assessee without allowing opportunity to cross-examination in rebuttal is held void in violation of principles of natural justice and against the mandate without being substantiated with corroborative cogent documentary evidences. In the instant case, even the statement of Mr. Rohtash Kumar was recorded on 16.11.2016, at the back of the Assessee, denying the opportunity to cross examine the witness cannot be used against him, being against the principles of natural justice as held by their Lordships of Supreme Court in the case of “Andaman Timber Industries[2015 (10) TMI 442 - SUPREME COURT] Further, all the case laws relied upon by department in support are distinguishable on peculiar facts of the case. CIT(A) was not justified in confirming the addition ignoring the affidavit and rebuttal in violation of principles of natural justice. As such, the addition is deleted. Appeal of assessee allowed.
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