Right to Cross-Examine limited at pre-assessment stage; no entitlement during preliminary tax proceedings, petition dismissed.

Assessee lacks a right to cross-examine witnesses during a Section 148A(d) pre-assessment order because the provision records preliminary reasons and is not a final adjudicatory assessment; permitting full cross-examination at this stage would disrupt the statutory assessment process and render subsequent proceedings under Section 147 ineffective. Writ relief under Article 226 is confined to exceptional circumstances such as absence of jurisdiction or procedural irregularity that vitiate the order; absent such defects, the pre-assessment order stands and the challenge is dismissed in favour of the revenue.

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Issues: Whether an assessee is entitled to cross-examine witnesses whose statements the assessing officer relied upon when passing an order under Section 148A(d) of the Income-tax Act, 1961.

Analysis: The issue arises in the context of a pre-assessment order under Section 148A(d) of the Income-tax Act, 1961 which records reasons and findings based on materials, documents and evidence but is not a final assessment order. The legal framework distinguishes between preliminary inquiries and final adjudicatory assessment proceedings under Section 147 of the Income-tax Act, 1961 and contemplates further proceedings including issuance of notices under Section 142(1) and Section 143 of the Income-tax Act, 1961 prior to passing a final assessment. Writ relief under Article 226 of the Constitution of India to interfere with orders of this preliminary character is permissible only in exceptional circumstances such as lack of jurisdiction or procedural irregularity affecting the validity of the order. In the absence of inherent lack of jurisdiction, procedural irregularity, or contradiction with any specific statutory provision, permitting a full trial-like right to cross-examine at the Section 148A(d) stage would undermine the statutory scheme and render subsequent assessment proceedings under Section 147 ineffective.

Conclusion: The assessee is not entitled to cross-examine the witnesses at the stage of an order under Section 148A(d) of the Income-tax Act, 1961; the writ petition challenging the Section 148A(d) order is dismissed and the decision is in favour of the revenue.

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