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2019 (9) TMI 501 - HC - Income TaxDenial of an opportunity to cross examination of witness - relief upon the statement of the person, claiming that Cash was received from the assessee, additions were made - non-supply of statements so recorded - unaccounted investment - HELD THAT:- Specific grievance was made about the willingness to cross-examine - The objection taken on behalf of the Respondent needs to be negated. In order to support their contention about the right to cross-examine witness, the leaned Counsel for the Appellant relied upon the Judgment delivered by in case of Andaman Timber Industries V/s Commissioner of C. Ex., KolkataII, Decided [2015 (10) TMI 442 - SUPREME COURT] . There was a proceedings relating to the payment of central excise. The Assessee made grievance about denial of an opportunity to cross-examine the buyers. Denial of such an opportunity is a serious flaw rendering the order as a nullity. Hence the Hon'ble Supreme Court set-aside the impugned orders. Provisions of Income Tax Act - The investigating team has recorded statement of said Gopal Kondawar on three occasions. They are on 10/4/2013, 31/5/2013 and 7/6/2013. The Appellant Assessee has made grievance about not admitting cash payment by Mr. Gopal Kondawar in first two statements. The Appellant Assessee has insisted on supply of the statement dated 7th June 2013. These statements have been made the foundation by the Income Tax authorities in passing the orders thereby including ₹ 1,50,00,000/in the income of the Assessee. These materials cannot be used against the Assessee without giving them an opportunity to challenge the contents of those statements. That is why an opportunity of cross-examining Mr. Gopal Kondawar needs to be given. Remand - ACIT is the first authority who has conducted that enquiry. Hence, he only can be directed to secure the presence of Mr. Gopal Kondawar for cross-examination by the Assessee. We do not find anywhere any observations by the learned Commissioner of Income Tax and by the learned Appellate Tribunal regarding the grievance made about denial of an opportunity of cross-examination. Failure to give an opinion about this grievance also amounts to refusal of an opportunity to cross-examine the said Gopal Kondwar which is improper. Hence, all the orders needs to be set-aside.
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