Alleged Violation of Natural Justice in Cross-Examination: Disclosure of Adverse Evidence in Assessment Order

The Tribunal found that the principles of natural justice were allegedly violated due to the denial of cross-examination. However, it was determined that the adverse evidence used in the assessment order should be disclosed to the assessee, except when of collateral nature. The right to cross-examine witnesses was not deemed mandatory under 'audi alteram partem'. As the statements and reports in question were secondary material and did not affect the main issue, there was no denial of natural justice. The appeal would proceed on merits after deciding against the assessee on the preliminary issue.

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Issues involved: Violation of principles of natural justice in assessment order.

Summary:
The appeal was filed against the order of the CIT(A), Central IV, Bombay, for the assessment year 1984-85. Both parties requested a decision on the preliminary issue of natural justice before proceeding on merits. The Tribunal found that the principles of natural justice were allegedly violated as cross-examination of certain individuals was not allowed. However, after examining the facts and relevant precedents, it was determined that the adverse evidence and material used in the assessment order should be disclosed to the assessee, except when such material is of collateral nature. The right to cross-examine witnesses making adverse reports was not deemed mandatory under the principle of 'audi alteram partem'. The Tribunal concluded that the statements and reports in question were secondary material and did not affect the main issue of the addition made. Therefore, it was held that there was no denial of natural justice principles. The preliminary issue was decided against the assessee, and the appeal would proceed on merits as usual.

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