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2014 (5) TMI 807 - ITAT MUMBAIDisallowance of broken period interest – Held that:- The Tribunal has reversed the finding of the CIT(A) - the AO is directed to delete the addition made on account of broken period interest – Decided in favour of Assessee. Disallowance of depreciation on leased assets – Held that:- The entire claim has been declined solely on the basis of the statement recorded at the time of the search - the Assessee was never allowed any opportunity of cross-examination - right to cross-examine the witness who made adverse report, is not an invariable attribute of the requirement of the dictum, ‘audi alteram partem’ - The principles of natural justice do not require formal cross-examination - Formal cross examination is a part of procedural justice - It is governed by the rules of evidence, and is the creation of Court - It is part of legal and statutory justice, and not a part of natural justice - it cannot be laid down as a general proposition of law that the revenue cannot rely on any evidence which has not been subjected to cross-examination - if a witness has given directly incriminating statement and the addition in the assessment is based solely or mainly on the basis of such statement, in that eventuality it is incumbent on the Assessing Officer to allow cross-examination - The finding of CIT(A) is based on incorrect understanding of the law - the issue needs to be decided in the light of the principles of natural justice – thus, the matter relating to the transactions with M/s. Rajendra Steels Ltd. is remitted back to the AO – Decided in favour of Assessee.
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