Addition based on mere Sales Tax Dept observations not sustainable

Advertisement It is been held that the addition made merely on the basis of observations by Sales Tax Department and without conducting any independent inquiry specially when the assessee has discharged his primary onus by showing the books of account and payment by way of account payee cheques and producing bills and vouchers for sales of goods, the addition could not be sustained. The assessee was also not given a copy of the statements recorded from the hawala operators and therefore no cross-examination could be asked by the assessee which is also against the equity and the principle of...