TMI Blog2022 (4) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the addition made by the AO keeping aside the evidence submitted by the assessee in the form of sales vouchers, VAT payment evidence, ledger entries, etc. only on the strength of reply letter received by him on 26.05.2019 from M/s National Pharma, Delhi without allowing cross examination to the assessee on the said letter/reply of M/s National Pharma. Therefore, respectfully following the proposition laid down by the Hon ble Supreme Court, we are compelled to hold that the addition confirmed by the ld. CIT(A) is not sustainable and the observations and findings recorded by the CIT(A) are hit by the proposition rendered by the Hon ble Supreme Court in the case of Andaman Timber Industries (supra). Accordingly, we allow the appeal of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ived including the details of VAT payments and ledger entries were completely overlooked and brushed aside, thereby vitiating double taxation of such amount in the computation of taxable total income. 4. Ld. Counsel vehemently pointed out that the ld. CIT(A) placed reliance on the confirmation given by M/s National Pharma without giving an opportunity to the assessee to cross-examine despite a request made vide letter dated 21.05.2019 should be reckoned as bad, erroneous and unsustainable in law. Ld. Counsel also pointed out that the CIT(A) appreciate that the reliance placed on unverifiable examination of M/s National Pharma was wrong, erroneous, unjustified, incorrect and not sustainable in law. It was also pointed out by the ld. Couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the respective party without making any further enquiry and brushing aside the voluminous evidence placed by the assessee is erroneous and bad in the eyes of law. Ld. Counsel also drew our attention to para 6.1 to 6.6 of the first appellate order and submitted that on receiving information from M/s Palepu Pharma Pvt. Ltd., the CIT(A) observed that National Pharma, Delhi has not dealt with the assessee during the year under consideration and all the details as per its accounts are nil only, which was duly confronted to the assessee vide letter dated 30.04.2019, which was replied by the assessee and the reply of the assessee has been reproduced by the ld. CIT(A) in para 6.3 of its order, however, ld. Counsel submitted that the informatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the assessee vide dated 21.05.2019, which has been reproduced by the ld. CIT(A) in para 6.4 of the first appellate order, wherein the assessee has contested the letter received by the ld. CIT(A) from M/s National Pharma on 26.04.2019 and the assessee requested ld. CIT(A) to allow opportunity to cross-examine the competent person/partner/director of M/s National Pharma, Delhi on the strength of decision of the Hon ble Supreme Court in the case of Andaman Timber Industries in Civil Appeal No.4228/2006, dated 02.09.2015. But this request and contention of the assessee was dismissed by the ld. CIT(A) by observing that it was bounden duty of the assessee to explain the cash found and it did not do so and did not itself submit the confirmati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ross examination, ld. CIT(A) denied the same without any cogent justification and valid reason which is a clear violation of proposition rendered by the Hon ble Supreme Court in the case of Andaman Timber Industries (supra). Therefore, we hold that the ld. CIT(A) was not correct in confirming the addition made by the AO keeping aside the evidence submitted by the assessee in the form of sales vouchers, VAT payment evidence, ledger entries, etc. only on the strength of reply letter received by him on 26.05.2019 from M/s National Pharma, Delhi without allowing cross examination to the assessee on the said letter/reply of M/s National Pharma. Therefore, respectfully following the proposition laid down by the Hon ble Supreme Court, we are compe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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