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2018 (2) TMI 1278 - AT - Income TaxPenalty u/s 271(1)(c) - addition for outstanding expenses for purchase of goods and expenses u/s. 68 and addition of opening balance of Deposits - summons u/s.131 - Held that:- A.O. had issued summons u/s.131 to (1) Vikibhai M. Raval (2) Bakulbhai Panchal and (3) Vijay Mahasan and had recorded their statements. On the basis of such statements addition of ₹ 7,50,572/- was made. The appellant was not informed about the statements recorded u/s.131 of the I.T. Act, 1961 and despite of the fact, appellant wrote a letter to the AO on 10/07/2012 to provide copies of statements of all the parties those were examined by the ld. AO u/s.131. But neither opportunity of cross examination nor statement u/s.131 was reported by the AO and supplied to the appellant and made an addition without informing the appellant. Since AO has not given any chance to cross examines the person whose statement were recorded u/s.131. Moreover, statement of above said persons were not supplied to the appellant and same is amount to miscarriage of justice. Ld. AO ought to have supplied the statement and thereafter given him chance to cross examine the person though statement was recorded by the AO. In such circumstances penalty cannot be levied, hence deleted. - Decided in favour of assessee.
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