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2018 (4) TMI 182 - AT - Income TaxReopening of assessment - whether AO has issued the said notice on the basis of information received from third party and without application of mind? - non-allowance of cross-examination - AO has not summarily rejected the objections raised against reasons recorded for the notice issued u/s. 148 by speaking order - information received from the Sales Tax Department in respect of parties who had issued sale bills but had not paid sales tax 0 addition on account of bogus purchases - Held that:- Where the assessee had sought cross-examination of the witnesses at the earliest stage i.e. while objecting to the reasons recorded for reopening the assessment, which duly has been acknowledged by the Assessing Officer in his order disposing of objections raised by the assessee against reopening of assessment. But the Assessing Officer though asked the assessee to collect the statement but failed to allow cross-examination though he admitted that the same would be allowed in due course of time. On a later date, AO concludes that the letters sent under section 133(6) of the Act to the dealer were returned back. But the same cannot be reason for denying cross-examination. In the absence of allowing cross-examination of witnesses used against the assessee, where the addition was made in the hands of assessee on the basis of aforesaid statements recorded by the Sales Tax Department, we hold that no addition on account of bogus purchases can be made in the hands of assessee. The assessee had also established factum of trail of goods. Accordingly, we delete the addition made on account of bogus purchases. - Decided in favour of assessee.
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