“violation of natural justice”
The decision most relied on for violation of natural justice is Kishanchand Chellaram v. CIT (125 ITR 713), cited in 962 judgments on BharatTax.
Leading authorities on violation of natural justice
An assessee is entitled to be confronted with evidence used against them and to an opportunity for cross-examination, especially when that evidence is from a third party or a retracted statement. Failure to provide such an opportunity violates the principles of natural justice.
Proceedings become fatal if principles of natural justice are violated, such as when seized material is not provided to the assessee or cross-examination of a person whose statement the Assessing Officer relies upon is denied.
Orders that are inordinately delayed are liable to be recalled and heard afresh, and the Appellate Tribunal President should frame guidelines for timely disposal of appeals.
The ITAT fails to uphold natural justice when it doesn't address an infirmity regarding an assessee being denied a proper opportunity of being heard before the CIT(Appeals)/NFAC dismissed the matter ex-parte.
An assessment order is unsustainable if the Assessing Officer denies the assessee the opportunity to cross-examine deponents whose statements are relied upon or fails to provide the material used against them, as this violates principles of natural justice.
The Assessing Officer must provide the assessee with all material relied upon for an addition or disallowance and an opportunity to cross-examine deponents or witnesses whose statements form the basis of the assessment. Failure to provide such an opportunity violates natural justice and invalidates the addition or disallowance.
An assessment order is invalid if it relies on statements of third-party witnesses without granting the assessee the opportunity to cross-examine them, as this constitutes a fundamental breach of natural justice. No addition can be sustained if based solely on un-cross-examined statements.
When an Income-tax Officer relies on third-party evidence to make an addition to an assessee's income, the assessee must be given an opportunity to cross-examine those parties. Failure to provide this opportunity violates natural justice and invalidates the addition.
