2023 (6) TMI 94 - HC - Income Tax

Denial of cross-examination process of witness - Importance of cross examination of the witnesses whose statements have been utilized by the Assessing Officer in the assessment order - ACIT restricted cross examination process by denying the questions asked by the Petitioner during cross examination - petitioner submits that the petitioner has not been provided complete copies of statements made by the witnesses who are being cross-examined, copy of entire order sheets, remand reports, etc. despite repeated requests - HELD THAT - After going through the documents available on record it is profitable to refer the order passed by this Court in 2023 (2) TMI 1146 - JHARKHAND HIGH COURT wherein this Court has made it very clear that there is no doubt that the control of the proceedings lies with the Presiding Officer, the Assessing Officer herein, on how to conduct the cross-examination. Adequate guidelines have also been issued by the Appellate Authority as reflected in communication dated 24.01.2023 more particularly the letter No. F. No. 1434 dated 30.12.2022 wherein the CIT (Appeal) has specifically directed that as the Evidence Act is the law of the land, the income tax authorities are bound to abide by its provisions. As gone through the directions in the remand order wherein he has allowed the appellant, cross examination of the witnesses whose statements have been utilized by the Assessing Officer in the assessment order. There is no ambiguity in the said directions. We hereby direct the petitioner to file petition for recall of the witnesses who have been cross-examined and discharged, to put them the question which have been initially discarded by the Assessing Officer.

Summary

Issues Involved:
The issues involved in this judgment include the delay in disposal of appeals by the Commissioner of Income Tax (Appeal), Patna for Assessment Year 2004-05 to 2010-11, restrictions on cross-examination process, denial of relevant questions by the Revenue, and the need for effective cross-examination opportunities.

Delay in Disposal of Appeals:
The petitioner sought directions for the Commissioner of Income Tax (Appeal), Patna to dispose of appeals filed against assessment orders for various Assessment Years. The history of the case reveals delays in the process, with cross-examination of witnesses being a key point of contention. The petitioner faced obstacles in obtaining complete copies of statements and order sheets, leading to the filing of additional writ petitions for expeditious disposal of appeals.

Restrictions on Cross-Examination:
The petitioner raised objections regarding the restrictions imposed by the Revenue during the cross-examination process. The Revenue disallowed relevant questions and restricted witnesses from providing complete responses. The petitioner emphasized the need for effective cross-examination opportunities in accordance with the Indian Evidence Act, 1872. The petitioner also requested permission to recall and question specific witnesses who had been previously cross-examined and discharged.

Court's Direction and Decision:
After hearing arguments from both parties and reviewing the documents, the Court referred to previous orders emphasizing the importance of conducting cross-examination in accordance with the Indian Evidence Act. The Court directed the petitioner to file a petition for the recall of certain witnesses for further questioning. Additionally, the Revenue was instructed to provide effective cross-examination opportunities and conduct the process in compliance with the law and established guidelines. As a result, the writ applications were disposed of based on these directions.