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2023 (4) TMI 196 - TELANGANA HIGH COURTUnexplained creditors - AO denied afford an opportunity to the appellant to cross-examine the transporters and for disbelieving the evidence adduced such as TDS certificates - Tribunal discredit the documentary evidence i.e. the TDS certificate and annual return of deduction of tax filed in Form No.26 (c) by the assessee and rely upon the oral evidence of the sundry creditors given behind the back of the assessee - HELD THAT:- Revenue authorities had relied upon statements and evidence made by the creditors adverse to the appellant, which were not furnished to the appellant. That apart, claim of the appellant to cross-examine the transporters who according to the appellants had issued confirmation letters about the outstanding credits but subsequently retracted was denied. Revenue had evidently relied upon the sworn statement of Mr. Kuldip Vasta recorded u/s 131(1)(b) of the Act which was adverse to the appellant. Therefore, the appellant should have been afforded an opportunity to rebut the same by cross-examining the deponent for extracting the truth. Failure to provide such an opportunity amounted to violation of the principles of natural justice which vitiated the order of the Tribunal. As following the decisions of the Supreme Court in M/s. Kishinchand Chellaram [1980 (9) TMI 3 - SUPREME COURT] and Andaman Timber Industries [2015 (10) TMI 442 - SUPREME COURT] we are of the considered opinion that findings rendered by the revenue authorities stood vitiated for failure on their part to afford an opportunity to the appellant to cross-examine the transporters and for disbelieving the evidence adduced such as TDS certificates. Decided in favour of the assessee.
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