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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

Vijaybhai Patel, Vadodara vs. The Income Tax Officer, Ward-1(3)(3), Vadodara

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 1104/AHD/2024[2012-13]Status: DisposedITAT Ahmedabad05 Dec 2024AY 2012-13

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. No. 1104/Ahd/2024 ("नधा"रण वष" / Assessment Year : 2012-13) बनाम/ Vijaybhai Patel Income Tax Officer 1-25 Station Vistar, At & Ward 1(3)(3), Vadodara Vs. Po: Bhilapur, Ta: Dabhoi, Vadodara - 391107 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Blapp8447A (Appellant) .. (Respondent) अपीलाथ" ओर से /Appellant By : Shri Hardik Vora, A.R. ""यथ" क" ओर से/Respondent By : Shri Rignesh Das, Sr. Dr 27/11/2024 Date Of Hearing Date Of Pronouncement 05/12/2024 O R D E R Per Shri Narendra Prasad Sinha, Am: This Appeal Is Filed By The Assessee Against The Order Of The National Faceless Appeal Centre (Nfac), Delhi, (In Short ‘The Cit(A)’), Dated 26.03.2024 For The Assessment Year 2012-13. 2. The Brief Facts Of The Case Are That The Assessee Did Not File His Return Of Income For A.Y.2012-13. The Ao Had Received An Information That The Assessee Had Made Cash Deposit Of Rs.91,71,500/- In His Bank Account With Bank Of Baroda. Therefore, The Case Was Reopened Under Section 147 Of The Income Tax Act, 1961 (In Short ‘The Act’). In The Course Of Assessment Proceedings, The Ao Was Not Satisfied With The Explanation Of The Assessee Regarding The Source Of This Cash Deposit. Therefore, An Addition Of Rs.91,71,500/- Was Made In

For Appellant: Shri Hardik Vora, A.RFor Respondent: Shri Rignesh Das, Sr. DR
Section 143(3)Section 147

disposal of appeal by NFAC without allowing any opportunity of being heard to the assessee is a matter of serious concern. The gross violation of natural justice not only renders the order of the CIT(A) indefensible but it also consumes considerable time, energy and cost to the assesse

Miot Hospitals Medical and Educational Mtrust, Chennai vs. ITO Exemptions Ward 4, Chennai

In the result the appeal of the assessee is allowed for statistical purposes only

ITA 1645/CHNY/2024[2016-17]Status: DisposedITAT Chennai29 Nov 2024AY 2016-17

Bench: Shri Aby T Varkey & Shri Amitabh Shuklaआयकर अपील सं./Ita Nos.1645/Chny/2024 निर्धारण वर्ा /Assessment Years: 2016-17 Miot Hospitals Medical & Income Tax Officer, Educational Trust, Exemptions Ward-4, No.4/112, Mount Poonamallee Road, Chennai Manapakkam, Chennai-89 [Pan: Aabtm3304L] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) : Shri S.Sundar Raman, Ca अपीलार्थी की ओर से/ Assessee By : Shri Keerthi Narayanan, Jcit प्रत्यर्थी की ओर से /Revenue By सुनवाई की तारीख/Date Of Hearing : 03.09.2024 घोषणा की तारीख /Date Of Pronouncement : 29.11.2024

For Appellant: Shri Keerthi Narayanan, JCIT
Section 11Section 12Section 13Section 13(1)(c)Section 13(3)Section 161Section 164(2)Section 250

outset, therefore, we find that the order of the Ld. AO deserves to be set aside on the very principle of violation of natural justice. It is a trite law that principles of natural justice entail that an opportunity of being heard is sine qua non to any judicial proceedings ... inspector, which as noted above suffers from incurable deficiency. We have also noted that there has been a serious case of violation of natural justice available to the taxpayer by the Ld. AO by not confronting the assessee with the contents of inspector’s report and giving him an opportunity