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TMI Blog2017 (11) TMI 1349X X X X Extracts X X X X X X X X Extracts X X X X ..... notice to the assessee. Since, the addition made by the learned Commissioner (Appeals) results in enhancement of income determined by the Assessing Officer, as per the mandate of section 251(2), the learned Commissioner (Appeals) should have given a show cause notice to the assessee before enhancing the income. The learned Commissioner (Appeals) having not followed the statutory mandate the addition cannot be sustained. Therefore, on over all consideration of facts and material on record, we are of the considered view that all the issues raised by the assessee in the present appeal requires to be restored back to the Assessing Officer for denovo adjudication after providing reasonable opportunity of being heard to the assessee. We order ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... name of the concerned parties appears in the list of hawala dealers identified by the Sales Tax Department. He observed, the assessee was neither able to produce the concerned parties nor any confirmation from them towards the sales effected. He observed that before the Sales Tax authorities, the concerned parties have admitted of having provided accommodation bills only. He further alleged that the assessee was even not able to furnish quantitative details of purchases and sales. Thus, the Assessing Officer ultimately held that purchases worth ₹ 95,69,047, made from nine parties are not genuine, hence, added back to the income of the assessee. The Assessing Officer further held that in case of another three parties since notice issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nuineness of purchases. He submitted, one of the parties i.e., Gagangiri Transport from whom the assessee had purchased materials worth ₹ 14,47,892 had responded to the notice issued under section 133(6) and confirmed sales made by him. However, though, the evidence was produced before the learned Commissioner (Appeals), he did not take cognizance. As far as the addition made on account of commission expenses, the learned Authorised Representative submitted that by such additions, the learned Commissioner (Appeals) has enhanced income of the assessee without issuing notice for enhancement as per section 251(2) of the Act. Learned Authorised Representative submitted, the assessee has undertaken three projects and has declared profit at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvoices, bank statement evidencing payment made through cheque to the concerned parties were produced before the Assessing Officer. In our view, though, it may be a fact that the documentary evidence produced by the assessee may not be enough to prove the fact that purchases were made from the concerned parties. However, at the same time, it is necessary to examine whether the assessee could have achieved the sale turnover without such purchases. This aspect requires examination. Moreover, if any adverse material is relied upon by the Assessing Officer to make the addition, rules of natural justice require not only confrontation of such adverse materials to the assessee but also a fair opportunity to the assessee to rebut those adverse mate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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