T.R. Senthil Kumar ORDER
Waseem Ahmed, Member (A)
1. The captioned appeal has been filed at the instance of Assessee against the order of the Learned Commissioner of Income Tax, [Ld. CIT(A) in short], National Faceless Appeal Centre (in short "NFAC"), Delhi dated 14.02.2023 arising in the matter of assessment order passed under s.143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") relevant to the Assessment Year (A.Y.) 2009-10.
2. The assessee in the ground of appeal has challenged the initiation of the proceedings under Section 147 of the Act and the assessee also challenged the addition made by the Assessing Officer for Rs. 8,50,000/- on account of on-money paid to the builder.
3. The facts in brief are that the assessee in the present case is an individual and engaged in the business of manufacturing and trading of PSC sale. The assessee in the year under consideration has purchased a residential house from the builder namely Parijat Residency on the payment of Rs. 20,50,000/- as per the sale deed. However, the Assessing Officer was of the view that the assessee has made payment in cash for Rs. 8,50,000/- without recording the same in the books on account. Thus, as per the Assessing Officer the assessee has made the payment of on-money for the purchase of residential property for Rs. 8,50,000/- only. The opinion of the Assessing Officer was based on the affidavit furnished by Shri Rushabh Chandrakant Sheth partner of Parijat Residency which was furnished during search under Section 132 of the Act. However, the assessee also furnished the affidavit dated 01.10.2016 during the assessment proceedings contending that no payment of the on-money has been paid for the purchase of residential house from the impugned partnership firm. However, the Assessing Officer was not satisfied with the contention of the assessee and therefore, he made the addition to the total income of the assessee.
4. Aggrieved assessee preferred an appeal to the Ld. CIT(A). The assessee before the Ld. CIT(A) submitted that there was no material available with the Assessing Officer for making the addition of on-money of Rs. 8,50,000/- except the affidavit furnished by the partner of the builder (Parijat Residency). As per the assessee, there cannot be any addition merely based on the statement of the third party until and unless, there is also some corroborative material on record and that too without affording the opportunity of cross-examination. However, the Ld. CIT(A) was not satisfied with the contention of the assessee on the reasoning that the assessee has not made any request for the cross-examination of the affidavit during the assessment proceedings. As such the assessee first time has raised the issue of cross-examination before the Ld. CIT(A). The Ld. CIT(A) further observed that the partner of Parijat Residency has clearly admitted having received on-money and denied availing the opportunity of cross- examination. Likewise, the assessee also remained silent for availing the opportunity of cross-examination during the assessment proceedings. Thus, the Ld. CIT(A) after considering all the facts w........