Addition not justified when third party retracted the statement and Assessee not given Opportunity to Cross Examine

Advertisement ACIT Vs Sabari Switch Gear (P) Ltd. (ITAT Cochin) The issue under consideration is whether the addition under section 68 is done by AO is justified in law whenm addition was based on third party statements which were retracted by them and Assessee was not given opportunity to cross examine them and when Addition are based merely on Surmises? In the present case, assessee carried on trading activities with certain parties from whom assessee claimed to have received loans and advances. AO suspected extending such huge advances to assessee.  Because of low profit margin of parti...