TaxTMI 
TaxTMI 
2018 (7) TMI 306
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.... basis of information received from third party, without applying his mind. 2. On the basis of facts and in the circumstances of the case and as per law, the Commissioner of Income Tax, (Appeals)-I, Nashik, is not justified in confirming the disallowance of purchases of Rs. 26,58,213/-, particularly when the AO has not allowed the appellant the crossexamination of the witness of the revenue i.e. parties from whom the purchases were made as well as the competent Sales Tax Authority on the basis of whose information the notice u/s. 148 of the Act was issued by the AO. 3. On the basis of facts and in the circumstances of the case and as per law, the disallowance made by the Commissioner of Income Tax (Appeals)-1, Nashik of the purchases ....
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....uing notice u/s.148 of the Act. The CIT(A) also was of the view that while recording the reasons for reopening, AO followed due procedure of law and ascertained the fact by legal evidence and therefore, reasons recorded were not vague. Thus, relying on the judgment of Hon'ble Supreme Court in the case of ACIT Vs. Rajesh Jhaveri Stock Brokers Pvt. Ltd., 291 ITR 500, judgment of Delhi High Court in the case of United Electrical Co. Pvt. Ltd. Vs. CIT 258 ITR 137 apart from others, CIT(A) upheld the view of AO regarding initiation of proceedings u/s. 147 of the Act. Contents of Para 4 along with its sub-paras of the CIT(A)'s order are relevant in this regard. 5. With regard to merits of the addition of Rs. 26,58,213/-, CIT(A) confirmed the sam....
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....ddition, Ld. Counsel relied on various decisions of Pune Bench of the Tribunal. 8. On the other hand, the Ld. DR for the Revenue relied heavily on the orders of AO/ CIT(A). 9. On hearing both the sides and on perusal of orders of Authorities below, I am of the view that AO as well as the CIT(A) have made the aforesaid addition of Rs. 26,58,213/- at the back of the assessee without providing copies of statement/affidavits of the parties and without providing the benefit of cross examination of the parties to the assessee. The application of the assessee addressed to the CIT(A)-I, dated 16-12-2016, evidences the fact of seeking cross examination and copies of statements/affidavits of the parties. For the sake of completeness of this order I....