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“violation of natural justice”

Natural JusticeAudi Alteram PartemAudi Alteram Partem881 judgments

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

Kishanchand Chellaram v. CIT
125 ITR 713 · 1980 · Supreme Court
962
citing judgments

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.

CIT v. Ashwani Gupta
322 ITR 396 · 2010 · High Court
262
citing judgments

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.

Shivsagar Veg Restaurant v. ACIT
317 ITR 433 · 2009 · High Court
202
citing judgments

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.

Vijay Shrinivasrao Kulkarni v. Income-tax Appellate Tribunal
171 Taxmann.com 696 · 2025 · High Court
200
citing judgments

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.

H.R. Mehta v. ACIT
387 ITR 561 · 2016 · High Court
175
citing judgments

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.

H.R. Mehta v. Assistant Commissioner of Income-tax, Mumbai
72 Taxmann.com 110 · 2016 · High Court
125
citing judgments

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.

Andaman Timber Industries v. Commissioner of Central Excise
15 SCC 785 · 2016 · Supreme Court
91
citing judgments

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.

Additional Income-tax Officer v. Ponkunnam Traders
102 ITR 366 · 1976 · High Court
66
citing judgments

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.

Judgments citing violation of natural justice

Electronic Instrumantation & Control Private Limited, Ahmedabad vs. The ITO, Ward-2(1)(1), (Previously Circle-2(1)(1)), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 1964/AHD/2024[2011-12]Status: DisposedITAT Ahmedabad31 Jan 2025AY 2011-12

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita No.1964/Ahd/2024 िनधा"रण वष" /Assessment Year : 2011-12 Electronic Instrumentation & The Ito बनाम/ Control Private Limited Ward-2(1)(1) V/S. 56, Panchratna Ind. Estate [Previously Circle-2(1)(1)] Changodhar Industrial Area Ahmedabad – 380 015 Sarkhej Bavla Road Changodar, Ahmedabad – 382 213 (Gujarat) "थायी लेखा सं./Pan: Aaace 4798 G (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee By : Shri Pamil H. Shah Revenue By : Shri Rignesh Das, Sr.Dr सुनवाई की तारीख/Date Of Hearing : 29/01/2025 घोषणा की तारीख /Date Of Pronouncement: 31/01/2025 आदेश/O R D E R Per Makarand V. Mahadeokar, Am:

For Appellant: Shri Pamil H. ShahFor Respondent: Shri Rignesh Das, Sr.DR
Section 143(3)Section 271Section 271(1)Section 271(1)(c)Section 80Section 80I

reasoning and merely endorsed the findings of the AO and the assessee’s submission dated 16.10.2024 was completely ignored, which is a serious violation of natural justice. 6. The Departmental Representative (DR) conceded the facts and circumstances. Electronic Instrumentation & Control Pvt.Ltd. vs. The ITO Asst. Year

The DCIT, Circle-4(1) (1), Ahmedabad vs. M/S. Shah Foils Pvt. Ltd., Ahmedabad

Appeal is partly allowed and the Revenue’s appeal is dismissed

ITA 1922/AHD/2019[2011-12]Status: DisposedITAT Ahmedabad31 Jan 2025AY 2011-12

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokar1. आयकर अपील सं /Ita No.1852/Ahd/2019 2. आयकर अपील सं /Ita No.1922/Ahd/2019 िनधा"रण वष" /Assessment Year : 2011-12 1. M/S.Shah Foils Ltd. 1. The Ito, Ward-4(1)(3) बनाम/ 26, Block-B, Galaxy Ahmedabad-380 015 V/S. Signature, Science City Rd Sola, Ahmedabad-380 060 2. The Ito, 2. M/S.Shah Foils Ltd. Ward-4(1)(3) 26, Block-B, Galaxy Ahmedabad-380 015 Signature, Science City Rd Sola, Ahmedabad-380 060 "थायी लेखा सं./Pan: Aaics 0490 F (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee By : Shri K.C. Thaker, Ar Revenue By : Shri A.P. Singh, Cit-Dr सुनवाई की तारीख/Date Of Hearing : 28/01/2025 घोषणा की तारीख /Date Of Pronouncement: 31/01/2025 आदेश/O R D E R Per Makarand V. Mahadeokar, Am: These Cross-Appeals By The Assessee & The Revenue Are Directed Against The Order Of The Commissioner Of Income Tax (Appeals)-8, Ahmedabad [Hereinafter Referred To As “Cit(A)”], Dated 23.10.2019, Arising Out Of The Assessment Order Dated 29.12.2017 Passed Under Section 143(3) Read

For Appellant: Shri K.C. Thaker, ARFor Respondent: Shri A.P. Singh, CIT-DR
Section 143(1)Section 143(3)Section 147Section 69A

material, which justified the initiation of reassessment proceedings u/s 147 of the Act. The CIT(A) also rejected the assessee’s claim of violation of natural justice, noting that the reasons for reopening were provided to the assessee on 05.05.2017 and the assessee had the opportunity to respond and filed