Where the reopening is done on the basis of the investigation wing report without further corroboration of the statement of a third party and the bogus purchases have been accepted in the subsequent year and where there is no opportunity of cross-examination of the third parties provided and there is non-application of mind inasmuch as the figures mentioned in the reasons is different from the material available on record then the notice is to be quashed. (AY. 2010-2011)
Supertech Forgings (India) Pvt. Ltd. v. DCIT (2022) 217 TTJ 161/ 214 DTR 33 (Asr)(Trib)
S. 69C : Unexplained expenditure-Bogus purchases-If purchases are accepted in subsequent years, information/reasons based solely on investigation wing report and on statement recorded of third party with no independent satisfaction of AO, no opportunity to cross-examine parties then reopening and addition not sustainable [S. 143(3), 147, 148]