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2016 (12) TMI 884 - HC - VAT and Sales TaxValidity of assessment order - whether the AO can make additions solely relying upon the third party statement and without any further corroborative evidence - Held that: - solely on the basis of information gathered by another officer on the basis of visit made outside the State in the premise of T.R.Somani & Sons and Bhavna Trade Agencies, in which, there is reference of sale by them to appellant-assessee, the addition is made - Identical question came to be considered by this Court in the case of Kantibhai Revidas Patel [2013 (11) TMI 972 - GUJARAT HIGH COURT], where the Assessing Officer made the additions on the basis of statement of third party and on the basis of other documents recovered from the third party premises. The learned CIT(A) deleted the the said additions by stating that in the absence of any other corroborative evidence, the said addition cannot be made on the basis of presumption and on the basis of statement of any third party and particularly when seized document was recovered from the third party premises. In the present case, there is no other corroborative evidence collected by the AO justifying the addition in exercise of powers on reassessment, more particularly, with respect to sale of the goods by T.R.Somani & Sons and Bhavna Trade Agencies alleged to have been made to the appellant. Without giving any opportunity of being heard to the appellant to confront the said material and / or without giving any opportunity to cross examine them, straightway and solely relying upon the same, in exercise of powers of reassessment, the AO has made addition, which in the facts and circumstances of the case, cannot be sustained. The impugned judgment and order passed by the learned Tribunal is hereby quashed and set aside and it is held that AO could not have made additions solely relying upon the third party statement and without any further corroborative evidence - decided in favor of assessee.
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