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2016 (10) TMI 1025 - AT - Income TaxAddition of bogus purchases - lack of independent inquiry by AO - Held that:- The perusal of assessment order reveals that AO has not made any independent enquiry except issuing notice to the dealer/ supplier under section 133(6) of the Act. In absence of reply from the alleged supplier the AO presumed that assessee has not purchased anything from the said supplier. The entire addition made by assessing officer is based on the assumption and presumption. The order of AO does not reveal that copies of statement recorded by Sale Tax Department of State Government was called by AO for his perusal or the same was provided to the assessee. The action of AO is based on the information of third-party. During the appellate proceeding, the Learned CIT(A) observed that assessee did not produced the hawala dealers before Assessing Officer for cross verification. The observation of Learned CIT(A) is contrary to the finding of assessing officer. The AO had not asked the assessee to produce the said hawala dealer during the reassessment proceeding. The ld CIT (A) further observed that statement and affidavit filed by hawala dealer before Sales Tax Department have evidentiary value. In fact such evidence was not available before Assessing Officer or before ld CIT (A). The copies of such statements or affidavits were never confronted with the assessee either by Assessing Officer or by ld CIT(A). Even otherwise, if it is considered for the sake of consideration for a moment that the statement or the affidavit filed before the sale tax Department has any relevance, the assessing officer should have carried out independent enquiry and to provide opportunity to the assessee to counter the same. - Decided in favour of assessee
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