Cross-examination is required in benami adjudication where a...

Cross-examination is required in benami adjudication where a retracted income-tax statement is the foundational evidence for alleging that another person provided the purchase consideration; reliance without testing the statement can undermine findings with confiscatory or penal consequences. Income-tax assessment and benami proceedings operate independently, so acceptance of an investment's source does not conclusively negate benami ownership, but an assessment addressing the same fund flow must be considered. For company-owned property, the Initiating Officer must establish that another person supplied consideration and would benefit from the property, and must give reasoned consideration to documented explanations based on reserves, loans and advances.