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2013 (4) TMI 465 - ITAT AHMEDABADAddition on account of bogus purchases - Held that:- The assessment order passed by the AO is vitiated on account of violation of principles of natural justice. Once Shri Rohit Panwala has stated through an affidavit that he is running 12 concerns and operating 12 bank accounts issuing bogus bills to various parties and returning cash to them and on that basis assessment of the assessee is reopened under section 147 then it was necessary for the AO to offer Shri Rohit Panwala for cross-examination by the assessee. Since Rohit Panwala is the witness of the Revenue the onus lies on the Revenue to enforce his attendance and allow the assessee to cross-examine him. Merely issuing summons by the AO to Rohit Panwala is not enough to discharge the onus which has to be ensured that Rohit Panwala attends his office and assessee attends his office and he is offered for crossexamination by the assessee. The entire case of the Revenue revolves around the statement of Rohit Panwala. Since no cross examination of Rohit Panwala is allowed to the assessee then his statement recorded at the back of the assessee cannot be read in evidence against him. As decided in Kishinchand Chelaram vs. CIT (1980 (9) TMI 3 - SUPREME Court) that opportunity to controvert should be given to the assessee. Merely on the strength of statement of Rohit Panwala it cannot be held that purchases are bogus.
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