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2017 (4) TMI 1364 - HC - Income TaxAddition u/s 69 on account of unexplained income - violation of principles of natural justice - Held that:- The genuineness of the transaction proved. The AO made distinction of the facts of the present case with the facts of the cases relied upon by the AO. Certainly circumstantial evidences can also be used against the appellant but in the present case except the statement of 3rd party which was partially retracted, no other evidence was used by the AO. Under the facts and circumstances of the case the addition made by the AO being not based on any evidence is directed to be deleted. Hon'ble Supreme Court in the case of Andaman Timber Industry Vs. Commissioner of Central excise [2015 (10) TMI 442 - SUPREME COURT] has held that not allowing the assessee to cross examine the witnesses by adjudicating the authority, though the statement of those witnesses were made the basis of impugned order is a serious flaw, which makes the order nullity, inasmuch as it amounted to violation of principles of natural justice because of which the assessee was adversely affected. This to be borne in mind that the order of the CCE was based upon the statement given by two witnesses. - Decided in favour of assessee.
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