TMI Blog2017 (9) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... - - Dated:- 25-7-2017 - SHRI R.C.SHARMA, AM For The Assessee : Shri Jayant R. Bhat For The Revenue : Ms. Beena Santosh ORDER PER R.C.SHARMA (A.M) : This is an appeal filed by the assessee against the order of CIT(A) 29, Mumbai dated 19/08/2016 for the A.Y. 2007-08 in the matter of order passed u/s.143(3) r.w.s. 147 of the IT Act. 2. Following grounds have been taken by the assessee:- 1. Under the facts and circumstances of the case and in law the Id. CIT(A) has erred in confirming the AO's action of reopening the assessment U/s 147 without appreciating the facts and records available with AO as also without appreciating the fact that AO had acted on borrowed satisfaction as against his own assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Hiranandani Group, had accepted the fact that on-money was received from sale of flats. The AO further stated that assessee Shri. Sachin Surya has booked flats, i.e. 1503-A and 1504-A in the building known as Richmond' at Hiranandani Gardens, Powai, Mumbai. The agreement value of each flat is ₹ 62,42,500/-. The information received from the investigation wing is that the assessee has made cash payment of ₹ 40 lakhs, i.e. ₹ 20 lakhs each for both the flats. 4. During the course of assessment proceedings, the AO has supplied the reasons recorded for reopening, copy of the information received from the wing and a copy of the relevant extract of the statement for Shri. Niranjan Hiranandani, Managing Director of H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntended by learned DR that there was definite information with the department and also statement of builder to the effect that assessee has paid on-money, therefore, AO has sufficient reason to believe that income has escaped assessment, the reopening was well justified. On merit of the addition he relied on the order of the AO and CIT(A) contended that in case of acquisition of house property, payment of on-money is a normal practice, therefore, AO was justified in making the addition. 10. I have considered rival contentions and carefully gone through the orders of the authorities below. From the record, I found that assessee has taken flats in the building known as Richmond Building at Hiranandani Garden, Powai, Mumbai. There was a sea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t order. Not providing such opportunity amounted to violation of principle of natural justice, a serious flaw which makes the order nullity. Under these facts and circumstances, the judicial pronouncements laid down by the Jurisdictional High Court in case of Ashish International is clearly applicable wherein Hon ble Bombay High Court held as under:- The question raised in this appeal is, whether the Tribunal justified in deleting the addition on account of bogus purchases allegedly made by the assessee from M/s. Thakkar Agro Industrial Chem Supplies P. Ltd. According to the revenue, the Director of M/s. Thakkar Agro Industrial Chem Supplies P. Ltd. in his statement had stated that there were no sales / purchases but the transactions we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... natural justice because of which the assessee was adversely affected. It is to be borne in mind that the order of the Commissioner was based upon the statements given by the aforesaid two witnesses. Even when the assessee disputed the correctness of the statements and wanted to cross-examine, the Adjudicating Authority did not grant this opportunity to the assessee. It would be pertinent to note that in the impugned order passed by the Adjudicating Authority he has specifically mentioned that such an opportunity was sought by the assessee. However, no such opportunity was granted and the aforesaid plea is not even dealt with by the Adjudicating Authority. Appellant had contested the truthfulness of the statements of these two witnesses and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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