Bogus Sales Addition: Reassessment Invalid Due to Lack of Application of Mind & Cross-Examination Denial

A.K. Lumbers Ltd Vs ACIT (ITAT Delhi) Income Tax Appellate Tribunal (ITAT) Delhi has set aside an assessment order against A.K. Lumbers Ltd., which had added over Rs. 93 lakh for alleged bogus sales and commission. The Tribunal found the reassessment proceedings initiated by the Assessing Officer (AO) to be invalid due to a lack of proper application of mind and the denial of the assessee’s right to cross-examine a key witness. The case originated from an e-filed return by A.K. Lumbers Ltd. for the assessment year 2011-12, declaring an income of Rs. 46,11,710/- with a turnover of Rs. 37....