TaxTMI 
TaxTMI 
2026 (7) TMI 1021
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....g both the assessment and appellate order bad in law and liable to be quashed. 2. Grounds relating to order under section 250 and 143(3) of the Act On the facts and in the circumstances of the case and in law: 2.1 The Hon'ble CIT(A) erred in law in not passing a speaking order as mandated under section 250(6) of the Act, and in not deciding the appeal on merits thereby rendering the appellate order bad in law and unsustainable. 2.2 The Hon'ble CIT(A) has erred in confirming the assessment order without properly appreciating the true facts and circumstances of the case and in upholding false allegations made, without providing an opportunity of cross-examination as directed by the Hon'ble ITAT. 2.3 The Hon'ble CIT(A) and Ld. AO erred by not providing opportunity to cross examine Mr. T. Ranga Rao which is in gross violation of the directions of the Hon'ble ITAT and also principles of natural justice. 2.4 The Hon'ble CIT(A) and Ld. AO erred by not appreciating that the term 'cross-examination' as defined under the Indian Evidence Act and by its nature itself refers to 'examination/questioning of ....
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....he assessee is in appeal before us. The Learned Authorised Representative ("Ld. AR") invited our attention to para no. 17 of the order of the Tribunal in ITA No. 988/Hyd/2019 dated 27.10.2022 and submitted that while restoring the matter to the file of the Ld. AO, the Tribunal had specifically directed the Ld. AO to facilitate the cross-examination of Shri Ranga Rao by the assessee. The Ld. AR further submitted that despite the specific directions of the Tribunal, no opportunity of cross- examination of Shri Ranga Rao was ever provided by the Ld. AO to the assessee. It was submitted that the Ld. AO merely collected certain information from Shri Ranga Rao and furnished the same to the assessee. However, the assessee was never afforded an opportunity to cross-examine Shri Ranga Rao. Accordingly, it was submitted that the Ld. AO has acted in complete violation of the directions issued by the Tribunal and therefore the assessment order passed in the second round is liable to be quashed. 6. Per contra, the Learned Departmental Representative ("Ld. DR") submitted that the dispute relates to alleged cash payment of Rs. 38,15,000/- made by the assessee towards purchase of a plot from M/....
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....ned Assessing Officer. Learned Assessing Officer will take steps to facilitate the cross examination of Mr. Ranga Rao by the assessee, and thereafter on factual verification will take a plausible view according to law. Grounds of appeal of the assessee are accordingly treated as allowed for statistical purpose." 8. On a perusal of the above, we find that while restoring the issue to the file of the Ld. AO, the Tribunal had specifically directed the Ld. AO to facilitate the cross- examination of Shri Ranga Rao by the assessee. We have also examined para nos. 6 to 9.4 of the assessment order passed by the Ld. AO in the second round, which is to the following effect: 6. Considering the submissions of the assessee, summons u/s. 131 of the I.T. Act dated 22.02.2023 has been issued to Sri Tummala Ranga Rao for cross-examination in the case of the assessee. As there is no response from him, one more opportunity was accorded to Sri Tummala Ranga Rao vide summons u/s. 131 of the I.T. Act, dated 28.08.2023. In response, Shri Tummala Ranga Rao vide letter dated 07.09.2023 submitted that he has no further evidence to submit and requested exemption from personal hearing. 7.....
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.... of Shri T. Ranga Rao who allegedly admitted that the assessee has paid cash without providing any evidence/ documentation. Further submitted that merely communicating the submissions of Shri T. Ranga Rao does not constitute cross-examination and requested to provide an opportunity of cross- examination of Shri T. Ranga Rao by the assessee. In this regard, assessee has also quoted various case-laws of Andaman Timber Industries v CCE [2016] 38 GSTR 117(SC), PCIT (Central) vs Oriental Power Cables Ltd [2022] 143 taxmann.com 371(SC), Kishanchand Chellaram (AIR 1980 14 SC 2117), Chaman Lal Dhingra v CIT (1995) 212 ITR 365 (SC)(366), H.R. Mehta v. ACIT (2016) 138 DTR 217 etc. which held that the assessee shall not be denied of the opportunity of cross examination. 9.1 The above case laws have been carefully perused. However, the said case laws do not apply to the facts of the present case, since, in this case, the assessee was accorded with ample opportunities of cross-examination of Shri T. Ranga Rao. Further, nowhere in the said case laws, it is mentioned that cross-examination means face-to-face confrontation. The word cross-examination shall be inferred as providing the ass....
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....he rate of Rs. 5,000/- per sq. yd. for plot No. 33A admeasuring 763 sq. yds. The said fact was agreed and reiterated by Sri T. Ranga Rao who has received cash component. The said confirmations were conveyed to the assessee who has to discharge his onus of proving that he has not paid the amount in cash as the transaction has been happened between the two persons. In the present scenario, the assessee is confirming that he has made payment through banking channel, denying amount paid in cash, transaction was stated to be not materialized but has not furnished any proof of cancellation of that agreement and returning of the amount paid through banking channels. Under these circumstances, it is beyond doubt that the assessee has made payment for the purpose of registration of Plot No. 33A and part of the amount was made through banking channel and balance amount with all probabilities based on the circumstantial evidences prove that has paid in cash as per agreed rate. 9.4 Hence, it is clearly established that Shri K. Ravindranath has paid Rs. 6,13,500/- through banking channel and an amount of Rs. 38,15,000/- in cash to Shri T. Ranga Rao towards booking of plot as investment....