2005 (7) TMI 94

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....atural justice, inasmuch as the witness relied upon having not been provided to the assessee for cross-examination is valid in law?" The present reference relates to the assessment years 1959-60, 1960-61 and 1961-62. Briefly stated the facts giving rise to the present reference are as follows: The applicant, a private limited company, derived income from running of rolling mill. It had the calendar year as its previous year. On June 5, 1958, it had taken over a running concern M/s. Jagdish Rolling Mills. Its original assessment for the assessment year 1959-60 was completed on a loss and assessments for the assessment years 1960-61 and 1961-62 on nominal incomes. In a search and seizure operation conducted by the Income-tax De....

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....tatement of Sri Rameshwar Prasad, another director of the applicant-company, was also recorded. On the basis of this information, proceedings under section 147 were initiated for the assessment years 1959-60, 1960-61 and 1961-62 to assess the escaped income of Rs. 3,08,102, proportionately divided in the three assessment years. The reassessment completed on the basis of the above proceedings were set aside by the first appellate authority on the ground that proper opportunity was not given to the assessee to cross-examine the witnesses and to put his point of view. During the course of the fresh assessment proceedings, with a view to affording the applicant an opportunity to cross-examine them, the Assessing Officer issued summons under sec....

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....ons made in the fresh assessment, on several grounds. Vide order dated February 8, 1988, the Commissioner of Income-tax (Appeals) upheld the validity of proceedings under section 147 of the Act. On the question of affording the applicant proper opportunity of cross-examination of the concerned persons, he observed that no efforts were left out by the Assessing Officer. The Commissioner of Income-tax (Appeals) did not find merit in the applicant's other arguments also. Accordingly, the appeals were dismissed. In the second appeal by the applicant, the Tribunal after referring to the reasons recorded by the Assessing Officer, did not find any infirmity in the initiation of proceedings under section 148 of the Act. On the pleas taken by th....