Sudha Aswal Vs DCIT/ACIT (ITAT Dehradun)
Core Issue: Whether an addition under Section 69B can be sustained solely on the basis of a loose sheet seized from a third party, when the assessee was not given an opportunity to cross-examine the person from whose possession the document was seized, thereby violating the principles of natural justice.
Facts:- A search under Section 132 was conducted in the case of Krishna Sharma and Sheetal Sharma.
During the search, loose sheets were seized allegedly showing that the assessee Sudha Aswal paid ₹16,89,000 in cash over and above the sale consideration of ₹19,90,000 for purchase of land.
Based on these seized documents, the AO made an addition of ₹16,89,000 under Section 69B in reassessment proceedings u/s 147.
The assessee contended that:
The document was seized from a third party.
It did not mention “cash payment.”
It was merely a dumb document without corroboration.
No opportunity was given to cross-examine the person from whose premises the document was seized.
The CIT(A) upheld the addition stating that cross-examination was not compulsory.
Tribunal’s Findings
The Tribunal held:
1. Document seized from third party
The loose sheet was seized from the premises of another person, not from the assessee.
