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2017 (11) TMI 1349 - AT - Income TaxAddition on account of bogus purchases - concerned parties have admitted before the Sales Tax authorities that they were providing accommodation bills only without actual delivery of goods - Held that:- Assessing Officer has not made such addition while completing assessment. It is the first appellate authority who in the course of appellate proceeding has made the addition on account of alleged expenditure to have been incurred by the assessee towards commission for availing accommodation bills. Undisputedly, before making the disputed addition, learned Commissioner (Appeals) has not issued any show cause notice to the assessee. Since, the addition made by the learned Commissioner (Appeals) results in enhancement of income determined by the Assessing Officer, as per the mandate of section 251(2), the learned Commissioner (Appeals) should have given a show cause notice to the assessee before enhancing the income. The learned Commissioner (Appeals) having not followed the statutory mandate the addition cannot be sustained. Therefore, on over all consideration of facts and material on record, we are of the considered view that all the issues raised by the assessee in the present appeal requires to be restored back to the Assessing Officer for denovo adjudication after providing reasonable opportunity of being heard to the assessee. We order accordingly. Grounds raised are allowed for statistical purposes.
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