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2022 (12) TMI 936 - AT - Income TaxUnexplained investment u/s 69 - Reliance on un-signed, unstamped, Satakhat, which has not been registered and is found from CD of computer of a person not connected with the assessee - violation of principle of natural justice - additions made in absence of providing opportunity of cross-examination of the persons - HELD THAT:- Hon'ble Supreme Court of India, in the case of Krishnachand Chelaram [1980 (9) TMI 3 - SUPREME COURT] and Andaman Timber Industries Vs. Commissioner of Central Excise[2015 (10) TMI 442 - SUPREME COURT] has held that additions without providing the opportunity of cross examination is in violation of natural justice. We note that additions made in absence of providing opportunity of cross-examination of the persons, whose statement has been relied upon for making the additions is violation of principle of natural justice. We also note that not allowing the assessee to cross examine the witness by the adjudicating authority though the statements of those witness were made the basis of the impugned order is a serious flaw which makes the order nullity. We note that same view was expressed in the case of Eastern Commercial Enterprises [1993 (12) TMI 26 - CALCUTTA HIGH COURT] wherein it was held that it is a trite law that cross examination is the sine qua non of due process of taking evidence and no adverse inference can be drawn against the party unless the party is put on notice of the case made out against him. The documents, which were found in the possession of other person, does not bear the name of the assessee, that is, the name of the assessee is not mentioned in the statement of another person. No addition can be made, if documents impounded during survey are unsigned and incomplete. No addition of unaccounted investment can be sustained when Assessing Officer had not made any further investigation. No statement recorded of land owners or purchasers as mentioned in the sale deed by AO to corroborate contents of impounded Satakhat. No specific query raised in respect of impounded Satakhat or the assessee to Turmish or Meera Kama by investing wing or AO. No addition can be made in respect of un-signed, unstamped, Satakhat, which has not been registered and is found from CD of computer of a person who is not connected with the assessee. In view of these facts and circumstances and in law, the addition so made by the AO is without any basis, without any corroborating evidences and without allowing due opportunity of cross-examination to the assessee and is therefore, unsustainable in law. Therefore, we delete these additions. Appeals filed by the assessee are allowed.
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