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| The Tax Publishers2019 TaxPub(DT) 6516 (Pune-Trib) INCOME TAX ACT, 1961
Section 143(3)
Where AO made addition without allowing cross-examination of witnesses, whose statements were the basis of order, matter was remanded back to AO with direction to first confront assessee with adverse material and to allow an opportunity of cross-examination.
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Assessment - Addition to income - Not allowing cross-examination of witnesses, whose statements were the basis of order. -
AO based on statement recorded by Investigation Wing made addition to assessee's income, however, without affording opportunity to assessee, despite specific request.Held: It was not a case where AO lacked jurisdiction to proceed with assessment. It was further not a case where AO made addition on his whims and fancies and without there being any material to substantiate the same. Per contra, it was a case of making addition on the basis of relevant evidence but simply using same without granting opportunity to cross examine. Thus it was an irregularity coming in the otherwise valid and lawful proceedings and such an irregularity could be regularized if assessment proceedings were brought back to the stage at which irregularity stepped it, therefore, matter was remanded back to AO with direction to first confront assessee with adverse material and to allow an opportunity of cross-examination.
Relied:Andaman Timber Industries v. CIT (2015) 62 Taxmann.com 3 (SC) : 2015 TaxPub(DT) 5186 (SC), CIT v. P. C. Chemicals (2013) 359 ITR 129 (Del) : 2013 TaxPub(DT) 30 (Del-HC) and CIT v. S.V. Sreenivasan (2018) 404 ITR 433 (Mad) : 2017 TaxPub(DT) 1390 (Mad-HC).
REFERRED :
FAVOUR : Matte remanded.
A.Y. : 2006-07
INCOME TAX ACT, 1961
Section 37(1)
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