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2017 (9) TMI 1463 - AT - Income TaxPenalty u/s 271(1)(c) - disallowance of alleged bogus purchases - non providing cross examination - Held that:- We have observed that no cross examination was allowed of the said four parties to the assessee despite the assessee bringing on record his grievances before learned CIT(A) that the assessee was not allowed cross examination as is emanating from the appellate order of learned CIT(A) but at the same time the assessee has also not furnished addresses of these four parties nor proof of movement of goods from selling parties to the assessee is brought on record. At the same time the assessee has also admitted that in these cases supplies are obtained from one vendor and invoices are obtained from other vendor but the material was purchased which was utilized/consumed for business wherein additions have either been deleted or profit@12.5% was brought to tax on these alleged bogus purchases by appellate authorities. Thus the assessee deserves one more opportunity and the matter/issue needs to be restored to the file of the AO for de-novo determination of the issue of leviability of penalty u/s 271(1)(c). The assessee be allowed to raise all contentions both on merits and on law before the AO which are kept open, which shall be adjudicated de-novo by the AO on merits in accordance with law.
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