Assessee is an individual and purchase flat with one developer . During the course of search at builder , some loose papers were found where noting about on money were recorded. The builder has stated that these noting are in respect of extra work carried out by contractor for flat holders and developer is only conduit between flat purchaser and contractor and has not received any money. However to avoid the litigation and buy peace he is accepting the noting and accordingly addition is made in the hands of builder . On the basis of such acceptance and assesssment order of developer of the project AO has proposed to make addition in the hands of the assessee.

assessee has requested the AO to give full details and statement and opportunity of cross examination of person and has objected to the proposed addition on the ground  AO has provided the copy of seized paper and copy  of assessment order of developer and his submission made where is he has accepted the addition to buy peace and avoid litigation. And has made addition in the hand of assessee.
is the action of AO is justified ?

Is there judicial support for contention of the assessee that no addition can be made on the basis of conditional acceptance of other persons assessment order or any other ground where Assessee can challenged the order .