VIMALA JITENDRA JAIN ,MUMBAI vs. THE ASST.CIT,CENTRALCIRCLE4(2), MUMBAI

Facts

The assessee filed appeals challenging orders under Section 250 of the Income Tax Act for AY 2019-20 and 2020-21. The assessments, framed under Section 153C following a search on the Rubberwala group, included additions for alleged 'on-money' cash payments for property. The assessee disputed the validity of the Section 153C notice, denial of cross-examination of third-party witnesses, reliance on uncorroborated statements, and the application of Section 115BBE for tax calculation.

Held

The Income Tax Appellate Tribunal (ITAT) deleted the impugned additions, finding that the assessments were based on uncorroborated third-party statements and search material without concrete evidence directly linking the alleged 'on-money' payments to the assessee. The Tribunal emphasized that denying the assessee the opportunity to cross-examine witnesses violated principles of natural justice and rendered the order null and void. It relied on a series of its own binding precedents on identical facts to reach this conclusion.

Key Issues

Whether the assessment framed under Section 153C was valid; whether denial of cross-examination and reliance on uncorroborated third-party statements violated principles of natural justice; and whether the additions made under Section 69 and application of Section 115BBE were sustainable in the absence of conclusive evidence against the assessee.