COMMISSIONER OF INCOME TAX vs. TRANS ASIA SECURITIES P.LTD.

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ITA - 1360 / 2008HC Delhi01 December 20081 pages
For Petitioner: PREM LATA BANSAL
AI SummaryDismissed

What did the High Court hold?

The Tribunal held that the statement of Mr. Manoj Aggarwal could not be relied upon as the assessee was not given an opportunity for cross-examination. This violated the principles of natural justice.

What were the facts?

The Income Tax Appellate Tribunal (ITAT) set aside a block assessment order based on a statement from Mr. Manoj Aggarwal. The assessee had requested to cross-examine Mr. Aggarwal, but this opportunity was denied.

What were the issues?

Whether a statement can be relied upon for assessment when the assessee is denied the opportunity to cross-examine the deponent, thus violating principles of natural justice.

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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IN THE HIGH COURT OF DELHI AT NEW DELHI . 01.12.2008 . Present: Ms P. L. Bansal with Mr Sanjeev Rajpal for the Appellant. . + ITA 1360/2008 . This appeal is directed against the order dated 25.01.2008 passed by the Income Tax Appellate Tribunal in respect of the block period 01.04.1990 to 03.08.2000. The Tribunal has followed the decision of this Court in the case of CIT v. SMC Share Brokers Ltd: 288 ITR 345. In that case also the statement of one Mr Manoj Aggarwal, Director of M/s Friends Portfolio Pvt. Ltd was sought to be relied upon. Since no opportunity of cross-examination had been given to the assessee, the Tribunal held that the assessment order had to be set aside as it was in complete violation of the principles of natural justice. In that case also, as in the present case, request was made by the assessee for cross- examination of Mr Manoj Aggarwal. However, the said Mr Manoj Aggarwal was not made available for cross-examination. The decision in SMC Share Brokers (supra) relates to the very same search as is referred to in the present case and in connection with the very same Mr Manoj Aggarwal. The Tribunal has placed reliance on the decision of this Court in SMC Share Brokers (supra) for . . concluding that since no cross-examination of Mr Manoj Aggarwal was allowed, his statement could not be relied upon. The entire foundation of the revenue?s case rested on the basis of Mr Manoj Aggarwal?s statement. If that statement were to be ignored, the revenue would have had no case. It is in these circumstances that the Tribunal confirmed the findings of the Commissioner of Income Tax (Appeals) and set aside the block assessment order passed by the Assessing Officer. We see no reason to interfere. The Tribunal has correctly applied the decision of this Court in the case of SMC Share Brokers (supra). No substantial question of law arises for our consideration. The appeal is dismissed. . BADAR DURREZ AHMED, J . . . RAJIV SHAKDHER, J December 01, 2008 SR . 27

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