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2016 (1) TMI 1113 - AT - Income TaxBogus sales transactions - accommodation bills - denial of natural justice - Held that:- We find that the AO received certain pieces of information from the STD,that as per the information JE was supplying bogus bills,that the AO did not supply the copy of the statement of JE to the assessee and neither made him available for cross examination,that the assessee had filed all the details from placing of order to the receipt of final bills before the AO during the assessment proceedings, that the assessee had discharged the onus cast upon it,that after that the AO did not make any inquiries,that the assessee had not rejected the books of accounts of the assessee ,that he had accepted the sale made by the assessee.In our opinion the AO had violated the basic principles of natural justice and the FAA had rightly held that addition made by the AO would fall in the category of addition made behind the back of the assessee. The Hon’ble Bombay High Court in the case of Nikunj Eximp Enterprises Ltd.(2013 (1) TMI 88 - BOMBAY HIGH COURT ) has held that if the AO accepts the sales as genuine,there cannot be any justification in rejecting the purchases.Information received from STD was a good starting point for further investigation.But,the AO stopped at that point itself and did not bring on record anything that could rebut the documentary evidence produced by the assessee.In our opinion,addition made by the AO was justifiably deleted by the FAA - Decided in favour of assessee
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