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2022 (10) TMI 1132 - AT - Income TaxReopening of assessment u/s 147 - Bogus purchases - HELD THAT:- Without finding any defect or inaccuracies in the documentation so submitted by the assessee during the course of assessment proceedings and relying solely on the statement, the assessment proceedings have been initiated and completed by the AO. Even where the AO is of the belief that contents of the statement are clear and specific and goes against the assessee, the question is whether the statement has been supplied to the assessee and whether the assessee has been allowed an opportunity to cross-examine Shri Rajesh Mittal especially where the assessee has requested for the same as evident from the submissions made before the lower authorities. Answer to the same is in negative and the assessee has thus been charged with an offence without even confronting the statement so used as an solitary evidence against it by the Revenue which is clearly in violation of the settled legal principle of natural justice as held in case of Andaman Timber Industries [2015 (10) TMI 442 - SUPREME COURT] - It is thus a case where the disallowance by way of bogus purchases has been made by AO solely based on statement of Shri Rajesh Mittal which was not subjected to further examination and cross-examination during the course of assessment proceedings and the facts of the case are thus at par with the facts in case of Odeon Builders Ltd [2019 (8) TMI 1072 - SUPREME COURT] where the SLP filed by the Revenue has been dismissed by the Hon’ble Supreme Court. The addition so made by the AO and sustained by the ld CIT(A) is hereby set-aside and the same is hereby directed to be deleted. - Decided in favour of assessee.
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