Cross-examination opportunity and adverse inference under Evidence Act barred writ interference with assessment order

An assessee's writ challenge to an assessment order failed because effective opportunity to cross-examine the witnesses was already given and cross-examination was in fact conducted. The court held that a further request to summon additional persons or compel more evidence did not justify interference in writ jurisdiction. Where relevant evidence is not produced, the proper course is to seek an adverse inference under Section 114(g) of the Indian Evidence Act, 1872 before the competent forum. On that basis, the assessment order was upheld.

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Issues: Whether the assessment order was liable to be quashed on the ground that the assessee was denied effective opportunity to summon and cross-examine the witnesses relied upon in the notice and assessment proceedings.

Analysis: The assessee was afforded an opportunity to cross-examine the witnesses, and cross-examination was in fact conducted. The request to summon additional persons and to compel further evidence did not warrant interference in writ jurisdiction. If relevant evidence was not produced, the proper course was to rely on the statutory presumption of adverse inference under Section 114(g) of the Indian Evidence Act, 1872 before the appropriate authority or forum. The Court found no justification to interfere with the assessment order in exercise of writ jurisdiction.

Conclusion: The challenge failed, and the assessment order was upheld.

Ratio Decidendi: Where an assessee has been given an opportunity to cross-examine the witnesses and the grievance is only about non-production of further evidence, writ interference is unwarranted and the party may seek an adverse inference under Section 114(g) of the Indian Evidence Act, 1872 before the competent forum.

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