Denial of cross-examination of person based on which addition was confirmed is unjustified

DSG Papers Pvt. Ltd. Vs The ACIT / DCIT (ITAT Chandigarh) ITAT Chandigarh held that denial of cross-examination, based on which addition on account of unrecorded sales was confirmed, demolishes the very foundation of making addition and hence such addition is unsustainable in law. Facts- Post search operations, AO proceeded to reopen the assessee’s case u/s 148. During the course of re-assessment proceedings, the AO proceeded to reject the books of account maintained by the assessee u/s 145(3) of the Act and, thereafter, proceeded to complete the re-assessment at an income of Rs. 46,36,749/-...