Reassessment order under Section 147 upheld as petitioner failed to request cross-examination summons during proceedings

The HC dismissed a writ petition challenging a reassessment order under Section 147 on grounds of denial of cross-examination opportunity. The petitioner argued that not being allowed to cross-examine a third party whose statement formed the basis of addition violated natural justice principles. The court held that since the petitioner never specifically requested the assessing officer to issue summons for cross-examination of the third party during proceedings, the writ petition could not be entertained on this ground. The court noted that merely stating in response that the order was decided without cross-examination rights, without applying for summons, cannot vitiate the assessment order. Given available alternative remedy through appeal, the court directed the petitioner to approach the appellate authority within 15 days with an application under Section 5 of the Limitation Act explaining the delay.

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Issues involved: Challenge to assessment order u/s 147 read with 144B of Income Tax Act 1961 and demand notice u/s 156 of the Act, denial of opportunity to cross-examine third party, appealability of order, violation of principles of natural justice.

Assessment Order Challenge:
The petitioner challenged the assessment order dated 7th March 2024 passed u/s 147 read with 144B of the Income Tax Act 1961, citing denial of opportunity to cross-examine Amit Kumar Agarwal from Amit Agarwal Group, whose evidence was crucial in the assessment. The petitioner contended that failure to provide the opportunity to cross-examine vitiated the order and the entire proceeding lacked principles of natural justice.

Denial of Cross-Examination Opportunity:
The petitioner had responded to show cause notices and emphasized the need to cross-examine third parties providing evidence. Despite the petitioner's requests, the assessing officer did not grant the opportunity to cross-examine Amit Kumar Agarwal, leading to a challenge on the grounds of violation of natural justice principles.

Appealability of Order:
The respondent argued that the order u/s 147 of the Act is appealable, suggesting that the petitioner should pursue the appeal process for redressal. Citing a Supreme Court judgment, the respondent contended that the entire grievance could be appropriately addressed through the appeal mechanism.

Court's Decision:
The Court noted that the petitioner did not specifically request summons for cross-examination during the assessment proceedings. While acknowledging the importance of natural justice, the Court held that the petitioner's failure to make a specific prayer for cross-examination before the assessing officer precluded the writ petition's consideration on those grounds. The Court highlighted the alternative remedy of appeal and directed the petitioner to approach the appellate authority within 15 days, with the option to request cross-examination of Amit Kumar Agarwal.

Judicial Precedent Consideration:
The Court referred to a Division Bench judgment where failure to provide an opportunity for cross-examination led to setting aside the assessment order. However, in the present case, as the petitioner did not request summons for cross-examination during the assessment, the Court directed the petitioner to pursue the appeal route within the specified timeline.

Conclusion:
The writ petition was disposed of without costs, with directions for the petitioner to approach the appellate authority within 15 days. The petitioner was granted the opportunity to request cross-examination of Amit Kumar Agarwal before the appellate authority, in line with the observations made by the Supreme Court in a relevant case.

Judge's Decision:
The Hon'ble Judge disposed of the writ petition, emphasizing the importance of following due process and utilizing the available appellate remedy for redressal, while providing specific directions for the petitioner to pursue the appeal process effectively.

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