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TMI Blog2017 (1) TMI 1593X X X X Extracts X X X X X X X X Extracts X X X X ..... of remand cannot be passed. The powers of the Income Tax Appellate Tribunal to pass an order of remand are not in doubt nor in dispute. Therefore, the contention that an order of assessment passed in violation of the principles of natural justice is void abinitio, is completely contrary to the fundamental principles of law, especially when the original authority had not lost its jurisdiction so as to become ineligible to deal with the issue after remand. - Decided against assessee. Payment of on-money - Held that:- The case of the assessee is alleged to fall under the second category. This is not a case where the company M/s. Emaar Hills Township (P) Ltd., has admitted to have received any on- money from the assessee. This is a case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artment and Mr. R. Sivaraman, learned Counsel representing Mr. N. Vijay for the Assessee. 3. The assessee is an individual belonging to the tinsel world. He filed his return of income for the Assessment Year 2009-10 on 30.09.2009 admitting an income of ₹ 3,16,76,600/-, besides an agricultural income. The case was selected for scrutiny and a notice under Section 143 (2) and 142 (1) was issued on 6.11.2013. 4. The Assessing Officer completed the assessment under Section 143 (3) r/w Section 153A and made certain additions including the addition of the alleged unexplained investments to the tune of ₹ 1,99,22,000/- under Section 69B. This addition was on the ground that the assessee and his wife entered into an agreement wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... linking the assessee to the cash payments. Therefore, the department has come up with the appeal in I.T.T.A.No.208 of 2016. 7. The assessee has come up with the appeal I.T.T.A.No.226 of 2016 contending that once the order of the Assessing Officer as confirmed by the C.I.T. Appeals is found to be vitiated by non- observance of principles of natural justice, the order of assessment was void abinitio and there was no question of remanding the matter back. 8. The questions of law raised by the Revenue in their memorandum of appeal I.T.T.A.No.208 of 2016 are as follows: 1. Whether in the facts and circumstances of the case and in law, the Honble ITAT is justified in accepting the plea of the assessee that no opportunity of cross examina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of natural justice is not followed and cross-examination is also not offered to the appellant? 3. Whether on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in remitting the issue relating to payment of on- money even though it had given a factual finding that the assessing officer did not have any other materials to establish that the appellant had paid such on-money in the present case and thereby giving an opportunity to the assessing officer to re-open the entire issue again? 4. Whether on the facts and in the circumstances of the case, can an addition be made under Section 69 of the Act merely based on the evidence of the seller of the appellant and the Tribunal having regard to the law la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciples of natural justice, the order should be set aside and the matter remitted back to the same authority. It is only in cases where the original authority had lost its jurisdiction in the meantime, an order of remand cannot be passed. 13. The powers of the Income Tax Appellate Tribunal to pass an order of remand are not in doubt nor in dispute. Therefore, the contention that an order of assessment passed in violation of the principles of natural justice is void abinitio, is completely contrary to the fundamental principles of law, especially when the original authority had not lost its jurisdiction so as to become ineligible to deal with the issue after remand. Therefore, the first question of law is answered against the assessee. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppreciate one thing. The evidence for the payment of on-money, over and above what is indicated in the documents, may arise in two different methods. It may arise on the basis of the recipient of on-money giving a statement to the effect. Alternatively it may arise circumstantially on the basis of the payments made by all other purchasers in the very same project. 18. The case of the assessee is alleged to fall under the second category. This is not a case where the company M/s. Emaar Hills Township (P) Ltd., has admitted to have received any on- money from the assessee. This is a case where other persons, who bought the property from the very same company, had allegedly paid huge amounts for the purchase of the property. These statement ..... X X X X Extracts X X X X X X X X Extracts X X X X
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