Cross-examination rights in unaccounted cash additions require fresh factual verification when additions rely on a marketing representative's statement.

An addition for alleged unaccounted cash paid for purchase of a villa plot, founded on a marketing representative's statement, requires effective opportunity for the assessee to cross-examine that person when specifically sought. The issue was remitted for fresh factual verification after affording cross-examination, with the assessee required to cooperate in the remanded proceedings.

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Issues: Whether the addition for alleged unaccounted cash paid towards purchase of a villa plot could be sustained without affording the assessee an opportunity to cross-examine the person whose statement formed the basis of the addition.

Analysis: The addition was founded on the statement of the marketing representative concerning cash payments over the documented consideration. Since the assessee specifically asserted denial of cross-examination, the matter required factual verification after an effective opportunity to cross-examine that person. The assessee was required to cooperate in the remanded proceedings.

Conclusion: The assessment on this issue was set aside and remitted for fresh factual verification after providing the assessee an opportunity to cross-examine the concerned person; the issue was decided in favour of the assessee.

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