TMI Blog2011 (11) TMI 438X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Rs. 75.00 lakhs and not Rs. 8,50,000/-, is not at all based upon the material found during search and is based / upon the statement of Sri V. Sadananda, which could not have been relied upon by the Assessing Officer. Addition rightly deleted - Decided in favor of assessee. - IT Appeal NO. 885 OF 2006 - - - Dated:- 15-11-2011 - V.G. SABHAHIT AND S.N. SATYANARAYANA, JJ. K.V. Aravind and M.V. Seshachala for the Appellant. V.S. Yogesh Kumar for the Respondent. JUDGMENT 1. This appeal is filed by the Revenue being aggrieved by the order passed by the Income Tax Appellate Tribunal, Bangalore, in ITA No. 115(Bang.)/2002 for the assessment year 1997-98 dated 06.01.2006 wherein the appeal filed by the Revenue has been dismis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 25 lakhs per acre from the revenue authorities in the year 1996, the actual consideration of the land was taken at Rs. 75.00 lakhs. By reducing the price declared by the assessee and thereafter the assessment order was passed deleting the addition and that the property was sold at Rs.75.00 lakhs, as per the statement given by Sri. V. Sadananda son of vendor of assessee under registered sale deed referred to above. The assessee has preferred I.T.A.NO. 19/R-8/CIT (A) IV 02-03 before the Commissioner of Income Tax (Appeals) III, Bangalore dated 16.05.2002 and the Commissioner of Income Tax held that Assessing Officer has not confronted the appellant statement on which he has relied and not given any opportunity for cross-examination of perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idence was brought on record by the Assessing Officer in support of in the face of the fact that the addition is based on the statement of Sri. V. Sadananda, S/o Venkatagiriyappa and others and the assessee 'himself disclosed additional income of Rs. 14 lakhs for assessment years 1996-97 and 1997 98 in respect of on money paid for purchase of lands. (3) Whether on the facts and circumstances of the case and in law the Income Tax Appellate Tribunal was right in deleting the addition of Rs. 52,50,000/- on the ground that the statement of third person could not have been used to make addition without cross examination of the witnesses when the records show that the assessee was confronted with the relevant statements and no opportunity for c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri V. Sadananda, the said statement cannot be the basis of passing the assessment order and therefore, entire proceeding is without jurisdiction and the substantial questions of law framed is answered against the revenue and the order passed by Appellate Authority is justified. 8. We have given careful consideration to the contention of the learned counsel appearing for the parties and the materials on record. 9. The materials on record clearly show the fact that registered sale deed has been executed by-Sri Venkatagiriyappa in favour of the assessee and is bought for a consideration of Rs. 8,50,000/- is not in dispute. It is also not in dispute that on the basis of search, assessment has been re-opened and the order of the assessment i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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