Assessment : Cross-examination of witnesses : A.Y. 1996-97 : Assessment based on statement of witnesses : No opportunity afforded to assessee to cross-examine the witnesses : Matter remanded.
[CIT v. Land Development Corporation, 316 ITR 328 (Karn.)]
The assessee was carrying on the business of real estate and building apartments. For the A.Y. 1996-97, the assessee had claimed depreciation on certain machineries used for the purposes of the business. In the course of survey conducted at the premises of the assessee and the seller of the machinery, statements of different persons were recorded. On the basis of such statements the claim for depreciation was disallowed. The assessee contended that the witnesses whose statements have been relied on were not allowed to be cross-examined by the assessee and therefore the disallowance can not be sustained in law. The Tribunal accepted the contention.
On appeal by the Revenue the Karnataka High Court held as under :
“The matter was to be remanded to the Assessing Officer for affording an adequate and proper opportunity to the assessee for cross-examination of all the witnesses whose statements were recorded earlier and whose statements had been already supplied to the assessee.”