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2023 (2) TMI 155 - AT - Income TaxValidity of Reopening of assessment u/s 147 - denial of principles of natural justice - addition u/s 68 - Necessity for statement of third party if relied upon by the Department to be confronted to the assessee for its comments and cross-examination - HELD THAT:- Revenue has committed infringement of principles of natural justice by not confronting the copy of statement adverse to the assessee while placing reliance on such statement as printed out by the assessee. Thus, owing to similarities on facts, the findings rendered in M/s. Priya Diamonds [2022 (1) TMI 1154 - ITAT DELHI] shall apply mutatis mutandis to the case of the assessee. In conclusion, objection towards lack of jurisdiction conferred under Section 147 of the Act is adjudicated against the assessee while the objection towards adjudication of merit is referred back to the Assessing Officer for de novo determination. The order of the CIT(A) is thus set aside on merits for fresh determination by the Assessing Officer. The Assessing Officer shall determine the issue on merits afresh in accordance with law keeping in mind the sacrosanct principles of natural justice. The statement of third party if relied upon by the Department, shall be necessarily confronted to the assessee for its comments and cross-examination, if demanded. The observations made in M/s. Priya Diamonds shall be adhered too. In conclusion, the matter is remitted and restored to the file of the Assessing Officer for determination of issue on merits afresh in accordance with law. Appeal of the assessee is partly allowed.
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