TMI Blog2018 (7) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... nts/affidavits of the parties. Thus revenue authorities have not followed due procedure before making reassessment u/s.147 of the Act and therefore, violated the principles of natural justice. Coming to the merits also, the assessee has produced copies of bills, transport receipts, delivery challans, bank statements, etc. establishing the trail of goods. Further, the books of account have also not been rejected u/s.145(3) of the Act. - Decided in favour of assessee - 949/PUN/2017 - - - Dated:- 25-5-2018 - SHRI D. KARUNAKARA RAO, AM For the Appellant : Shri Sanket Joshi For the Respondent : Shri Pankaj Garg PER D. KARUNAKARA RAO, AM This appeal filed by the assessee is against the order of CIT(A)-1, Nashik date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business of manufacturing and trading steel. Assessee filed the original return of income on 09.08.2010 declaring total income at ₹ 4,50,580/-. On the basis of information received from Sales Tax Department, AO noticed that the assessee indulged in making purchases from couple of hawala dealers viz. (1) Rahul Steels; and (2) Asian Steel aggregating to ₹ 26,58,213/-. At the end of re-assessment proceedings u/s.143(3) r.w.s. 147 of the Act, the AO made addition of ₹ 26,58,213/- on account of the said bogus purchases. Aggrieved with the order of AO, the assessee filed an appeal before the CIT(A) challenging the validity of notice issued u/s.148 of the Act as well as the addition on account of bogus purchases amounting to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were not evidenced. In view of the fact that assessee failed to produce any documentary evidence in the shape of transport receipt warehouse receipts, stock of goods, matching purchases to sales to support his purchases, CIT(A) confirmed the addition. Para 5.1 and 5.2 of the appellate order are relevant in this regard. 6. Aggrieved with the order of CIT(A), assessee filed appeal before me raising the aforementioned grounds extracted above. 7. At the outset, Ld. Counsel for the assessee submitted that CIT(A) has erred in confirming validity of notice issued u/s. 148 particularly when AO issued the said notice merely on the basis of information received from third party and without applying his mind on the issue of concealment of inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in fact witnesses of the revenue. The appellant does not have the copies of the statements/affidavits of the hawala dealers which the A.O. has relied upon for making the assessment of the year under appeal. Therefore, we kindly request your honour to direct the AO to grant us the copies of the said statements and affidavits. Ws also kindly request your honour to direct the AO to allow us the cross examination of the said so called suspicious dealers and also competent Sales Tax Authority who has furnished the details of suspicious dealers to the Income Tax Department. In the similar case it is accepted that the suspicious dealers on the basis of whose statements and affidavits the impugned proceedings are initiated, were absconding. Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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