2026 (1) TMI 543

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....e Tax Act, 1961 ('Act' for short) carried on 02/02/2022, assessment proceedings has been initiated against the Assessee and an assessment order came to be passed on 14/03/2024 u/s 147 of the Act by making addition of Rs. 4,50,000/- on account of undisclosed investment u/s 69B r.w. Section 115BBE of the Act. Aggrieved by the assessment order dated 14/03/2024, the Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 11/09/2025, dismissed the Appeal of the Assessee. As against the order of the Ld. CIT(A), the Assessee preferred the present Appeal. The Ld. Assessee's Representative submitted that the issue involved in the present appeal is squarely covered in favour of the Assessee vide order dated 22/....

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....the Ld. CIT(A) regarding violation of principals of natural justice on the ground that the Assessee has not been given opportunity of cross examination of the said Krishna Sharma. However, the Ld. CIT(A) held that the opportunity of cross examination is not a compulsory requirement before deciding the matter. 9. The Hon'ble Supreme Court in the case of Andaman Timber Industries Vs. Commissioner of Central Excise (2015) 62 Taxmann.com (S.C) held as under:- "not allowing the assessee to cross-examine the witnesses by the Adjudicating Authority though the statements of those witnesses were made the basis of the impugned order is a serious flaw which makes the order nullity inasmuch as it amounted to violation of principle....

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....termine the price for the purpose of levy of excise duty. Whether the goods were, in fact, sold to the said dealers/witnesses at the price which is mentioned in the price list itself could be the subject matter of cross-examination. Therefore, it was not for the Adjudicating Authority to presuppose as to what could be the subject matter of the cross-examination and make the remarks as mentioned above." 10. As observed earlier, the seized document has no mention of the payment of cash and there is no corroborative statement recorded from the seized person i.e. Krishna Sharma. The assessment order came to be passed without providing opportunity of cross examination of the said Krishna Sharma, which is contrary to the ratio laid down ....