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2017 (3) TMI 386 - AT - Income TaxAddition of bogus purchases - denial of natural justice - Held that:- We find that in this case additions have been made on the basis of a statement of suppliers that they were only providing accommodation bills. Despite request assessee has not been granted an opportunity to cross examine the suppliers. Moreover, no adverse inference has been drawn as regards the sales made by the assessee. In several cases higher courts have held that in such cases in absence of any infirmity found in the sales made purchase cannot be disallowed. As regards violation of the principles of natural justice by denying the opportunity to the assessee to cross examine the person on whose basis/statement additions was made Hon’ble jurisdictional High Court in the case of H R Mehta (2016 (7) TMI 273 - BOMBAY HIGH COURT ) has expounded that revenue was not justified in making additions at the time of reassessment without having first giving the assessee an opportunity to cross examine the Deponent understatement relied upon by the assessing officer. Further the decision from the Hon’ble Apex Court in the case of Kishanchand Chillaram (1980 (9) TMI 3 - SUPREME Court ) relied upon by Ld. CIT-A is also germane here. In the background of aforesaid discussion and precedent we find that the additions in this case are not justified. Hence we set aside the order's of authorities below and delete the addition. - Decided in favour of assessee
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