TMI Blog2019 (5) TMI 1909X X X X Extracts X X X X X X X X Extracts X X X X ..... along with the documentary evidence filed by the assessee in two paper books and the decision of the Hon'ble Supreme Court of India in the case of Andaman Timber Industries [ 2015 (10) TMI 442 - SUPREME COURT] it is clear that the Assessing Officer has not given any opportunity of cross-examine to the third party as well as not supplying the statement of the same to the assessee which is contrary to the principle of natural justice and the addition on this basis is not sustainable in the eye of law. Respectfully following the decision given by the Hon'ble Supreme Court of India reproduced above, we are of the view that the Assessing Officer has not given any opportunity to the assessee for cross-examine to the third party of whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition of ₹ 17,22,268/- out of ₹ 38,23,000/- made by Assessing officer by estimating the disallowance at the rate of 12.5% of the total alleged Bogus Purchase. 3. It is therefore prayed that addition made by the assessing officer and confirmed by CIT(A) may please be deleted. 4. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal 3. At the time of hearing, Ld.Counsel for the assessee has submitted that the AO has erred on facts and in law forming a negative inference solely on the basis of extracts of statement by third parties without confronting the same to the assessee and in total disregard to the provisions of law. He stated the AO ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... second paper book containing page 1 to 91 in which he has attached notices issued by the Assessing Officer u/s.148 of the Act and copies of reasons recorded in reopening the case of the assessee for the assessment years in dispute. 4. Ld. DR relied upon the orders of the authorities below. However, he submitted that the mistake of the Assessing Officer may not be taken seriously and impugned order may be upheld by dismissing the appeals filed by the assessee. 5. We have heard the both the parties and perused the record available with us, especially the orders passed by the Revenue Authorities along with the two paper books filed by the assessee. We are of the considered view that the Assessing Officer has reopened the assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ples of natural justice because of which the assessee was adversely affected. It is to be borne in mind that the order of the Commissioner was based upon the statements given by the aforesaid two witnesses. Even when the assessee disputed the correctness of the statements and wanted to cross-examine, the Adjudicating Authority did not grant this opportunity to the assessee. It would be pertinent to note that in the impugned order passed by the Adjudicating Authority he has specifically mentioned that such an opportunity was sought by the assessee. However, no such opportunity was granted and the aforesaid plea is not even dealt with by the Adjudicating Authority. As far as the Tribunal is concerned, we find that rejection of this plea is to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above, we are of the opinion that if the testimony of these two witnesses is discredited, there was no material with the Department on the basis of which it could justify its action, as the statement of the aforesaid two witnesses was the only basis of issuing the Show Cause Notice. We, thus, set aside the impugned order as passed by the Tribunal and allow this appeal. No cost. 6. Keeping in view of the facts and circumstances of the present case and the issue in dispute along with the documentary evidence filed by the assessee in two paper books and the decision of the Hon'ble Supreme Court of India in the case of Andaman Timber Industries (supra) it is clear that the Assessing Officer has not given any opportu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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