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2020 (12) TMI 1064 - AT - Income TaxUnexplained cash credit u/s 68 r/w section 115BBE - Bogus purchase and sale - HELD THAT:- Authorities below have not cited any statement of the parties from whom the purchases and sales were made wherein they had denied these transactions and if there are any statements of these parties wherein they had denied these transactions, such statements were not made available to the assessee for cross examination. The assessee in para 3 of the above reply had specifically requested to confront all information and documents etc. but no such opportunity was granted to assessee. The argument of Learned D. R. that since the Hon'ble Allahabad High Court had held the parties to be bogus therefore, there was nothing to be confronted to assessees is not helpful to the Revenue as opportunity of cross examination of third parties on whose statements the Revenue is relying is a legal right available to the assessee and which has been held by various Hon'ble courts including Supreme Court in the case of Andman Timber Industries [2015 (10) TMI 442 - SUPREME COURT]. Moreover, we find that the Assessing Officer had made the additions on the basis of a report from the Assessing Officer of Rich Group of companies and has not carried out any independent investigations for holding the transactions of cloth trading as bogus. The assessee has recorded the entries of sales and purchase in its books of account and has duly disclosed the items of sales and purchase in the profit & loss account and has duly disclosed the profit earned on the trading in the profit & loss account and has offered the same as business income. The assessee has furnished as much information as possible to justify its claim about the transactions of cloth being genuine. Under these circumstances, Hon'ble Supreme Court in the case of CIT vs. Odeon Builders Pvt. Ltd. [2019 (8) TMI 1072 - SUPREME COURT] has decided the issue in favour of assessee. Additions deleted.
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