Additions made violating principles of natural justice are void ab initio

Brief of the case:

The ITAT Hyderabad in the case of Shri G. Mahesh Babu vs. DCIT held that if any material gathered by AO proposed to be utilized in the course of assessment proceedings then it is the duty of AO to inform the assessee about the same and provide an opportunity to be heard. If AO fails to do so then the same would result in violation of principles of natural justice and would invalidate the action taken by AO.

Facts of the case:

• The assessee and his wife have entered an agreement with M/s. Emaar Hills Township (P) Ltd.(EHTPL) to purchase a plot of land at Manikonda Village Range Reddy District, admeasuring 1328 sq. ft.

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