2012 (8) TMI 1131 - AT - Income Tax

Summary

Issues involved:
The issues involved in this case are related to the addition of undisclosed income u/s 133A, assessment based on survey findings, discrepancies in sale consideration, cross-examination of witnesses, and the validity of registered sale deed.

Summary:

Issue 1: Addition of undisclosed income u/s 133A
The appeals filed by the Revenue were against the order of CIT (A) directing to delete the addition of Rs. 8,20,150 without considering the confirmation given by a witness. The survey u/s 133A revealed discrepancies in the sale consideration of a property leading to the addition of undisclosed income by the Assessing Officer (AO). The ITAT set aside the assessment and directed the AO to allow cross-examination of witnesses.

Issue 2: Discrepancies in sale consideration
The assessee contended that the vendor's claim of receiving Rs. 26,00,000 was false and unsupported by evidence. The CIT (A) held that the value mentioned in the registered sale deed should be accepted as the consideration, as the vendor's statement lacked verifiable evidence. The ITAT rejected the Revenue's appeal, emphasizing the importance of the registered sale deed in determining the actual consideration.

Issue 3: Cross-examination of witnesses
Despite the ITAT's direction to allow cross-examination, the assessee was not given a fair opportunity to do so. The lack of proper cross-examination raised doubts about the authenticity of the vendor's claim and the witness's statement regarding the sale consideration.

Conclusion:
The ITAT dismissed the Revenue's appeals, upholding the CIT (A)'s decision to delete the addition of undisclosed income. The importance of the registered sale deed and the lack of substantial evidence to contradict its value were crucial in determining the outcome of the case.