TMI Blog2016 (12) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... ce collected by the AO justifying the addition in exercise of powers on reassessment, more particularly, with respect to sale of the goods by T.R.Somani & Sons and Bhavna Trade Agencies alleged to have been made to the appellant. Without giving any opportunity of being heard to the appellant to confront the said material and / or without giving any opportunity to cross examine them, straightway and solely relying upon the same, in exercise of powers of reassessment, the AO has made addition, which in the facts and circumstances of the case, cannot be sustained. The impugned judgment and order passed by the learned Tribunal is hereby quashed and set aside and it is held that AO could not have made additions solely relying upon the third party statement and without any further corroborative evidence - decided in favor of assessee. - Tax Appeal No. 275 of 2009 - - - Dated:- 16-11-2016 - M. R. Shah And B. N. Karia, JJ. M/S Wadiaghandy Co, Advocate for the Appellant Mr. Hardik Vora Asst. Government Pleader for the Opponent JUDGMENT ( Per : Honourable Mr. Justice M. R. Shah ) 1.0. Feeling aggrieved and dissatisfied with the impugned judgment and order passe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncies. 2.2. Feeling aggrieved and dissatisfied with the reassessment order, the appellant preferred appeal before the First Appellate Authority, which came to be dismissed by the First Appellate Authority vide order dated 03.03.1997. 2.3. Feeling aggrieved and dissatisfied with the order passed by the order passed by the First Appellate Authority, the appellant preferred Second Appeal before the learned Tribunal being Second Appeal No.415 of 2007. A Specific contention was raised before the learned Tribunal that before relying upon the books of account / material with respect to T.R.Somani Sons and Bhavna Trade Agencies and while making the addition with respect to the purported unaccounted purchase from T.R.Somani Sons and Bhavna Trade Agencies, the appellant was neither furnished such material / information gathered by the concerned officer and / or even no opportunity of cross examination was afforded. At this stage, it is required to be noted that the appellant specifically disputed having purchased any goods from T.R.Somani Sons and Bhavna Trade Agencies. By order dated 27.02.2007, the learned Tribunal dismissed the said appeal by observing that the appellant had n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee was required to be given an opportunity by furnishing third party information gathered / received by the concerned officer and / or appellant assessee was required to be given opportunity of cross examination. 3.2. It is submitted that in the present case before making addition on the basis of third party information i.e. books of account maintained by T.R.Somani Sons and Bhavna Trade Agencies and gathered / received by the concerned officer of the department, the assessee has not been given any opportunity either to controvert the same by furnishing such information and such information has been used behind back of the appellant. 3.3. It is further submitted by Shri Tanvish Bhatt, learned advocate for the appellant that in the present case opinion has been formed by the AO as well as by the Tribunal that the appellant has not maintained the regular books of account without any further evidence and solely on the basis of alleged purported unaccounted transaction/ purchase from T.R.Somani Sons and Bhavna Trade Agencies. It is submitted that therefore, the reassessment order can be said to be in breach of principles of natural justice. Making above submissions, it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counted purchase from aforesaid T.R.Somani Sons and Bhavna Trade Agencies. However, it is required to be noted that the appellantassessee has not been given opportunity by furnishing material / information gathered by the concerned officer and even books of account / material with respect to T.R.Somani Sons and Bhavna Trade Agencies. The assessee has not been afforded the opportunity of cross examination. The assessee has specifically disputed having purchased any goods from the T.R.Somani Sons and Bhavna Trade Agencies. However, solely on the basis of information gathered by another officer on the basis of visit made outside the State in the premise of T.R.Somani Sons and Bhavna Trade Agencies, in which, there is reference of sale by them to appellantassessee, the addition is made. Identical question came to be considered by this Court in the case of Kantibhai Revidas Patel (supra). In the case before the High Court, the Assessing Officer made the additions on the basis of statement of third party and on the basis of other documents recovered from the third party premises. The learned CIT(A) deleted the the said additions by stating that in the absence of any other corrobo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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