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2023 (6) TMI 77 - AT - Income TaxUnexplained investment - Unaccounted cash for purchase - admission of the third party / addition based on the statement of the third party - HELD THAT:- Except the admission of the vendor, that the assessee had paid unaccounted cash for purchase of villa in Green City Project of Vizag Profiles group, there is no supporting evidence placed before us by the revenue establishing that the assessee has paid extra amount. The revenue authorities has placed one appraisal report, where name of the assessee was mentioned showing that the assessee has paid an amount in cash. Case was reopened and the AO examined the issue and came to conclusion that the assessee has not established an amount therefore, he treated the said amount as unexplained investment. The assessee was not given the copy of the said statement of admission, nor he was given any opportunity for the purpose of rebutting the said statement. Mere admission of the third party cannot be a basis for making addition in the hands of the assessee without confronting the assessee about the incriminating material. M/s Vizag Profiles made a general statement that they have received some amount from the purchasers. Therefore, addition of unaccounted investment in the hands of the assessee cannot be sustained. Decided in favour of assessee.
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