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2018 (5) TMI 241 - AT - Income TaxReopening of assessment - estimating profit @ 25% out of alleged hawala purchases - Held that:- In case of return of income processed u/s 143(1), the only condition to be satisfied for reopening is taxable income has escaped assessment and the assessee’s plea that no fresh material was there before the AO warranting re-opening, is not relevant. We uphold the re-opening made by the AO by issuing notice u/s 148 of the Act. For bogus purchases we are of the considered view that the contentious issues in the instant case could be resolved by proper hearing by the AO. A proper hearing must always include a fair opportunity to those who are parties in the controversy for correcting or contradicting anything prejudicial to their view. Cross-examination is allowed by procedural rules and evidently also by the rules of natural justice. We set aside the order of the CIT(A) on the above issue and restore the matter to the file of the AO to make a de novo order after examining the parties mentioned and allowing cross-examination to the assessee. It is the duty of the assessee to file before the AO the recent address of the above parties. Appeal is allowed for statistical purposes.
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