2013 (7) TMI 968 - AT - Income Tax

Summary

Issues Involved:
The judgment involves the issue of challenging findings related to the addition of "On Money" in the order of the Ld. CIT(A)-VIII, Mumbai for A.Y. 2005-06.

Details of the Judgment:

Issue 1: Addition of "On Money"
During the scrutiny assessment proceedings, the Assessing Officer (AO) observed "on money" transactions in the case of other entities and issued a notice u/s 153C to the assessee. The AO added Rs. 1,66,40,000/- as undisclosed income based on these transactions. The assessee denied receiving any extra money and explained the transactions were accounted for. The AO, after considering responses, made the addition.

Issue 2: Appeal to CIT(A)
The assessee appealed to the Ld. CIT(A), who noted the lack of opportunity for cross-examination of witnesses and discrepancies in seized documents. The Ld. CIT(A) ruled in favor of the assessee, citing violations of natural justice and lack of corroborative evidence.

Issue 3: ITAT Decision
The Revenue challenged the Ld. CIT(A)'s decision before the Appellate Tribunal. After reviewing submissions and evidence, the Tribunal found that no addition could be made solely based on seized documents without allowing cross-examination. Citing precedents, the Tribunal upheld the Ld. CIT(A)'s decision and dismissed the Revenue's appeal.

In conclusion, the Appellate Tribunal upheld the Ld. CIT(A)'s decision, emphasizing the importance of natural justice and corroborative evidence in such cases. The appeal filed by the Revenue was dismissed on 24th July 2013.