Unexplained investment addition quashed due to lack of cross-examination opportunity on relied statements.

The Income Tax Appellate Tribunal (ITAT) quashed reassessment proceedings initiated under Section 147 due to a violation of natural justice principles. The proceedings involved an unexplained investment addition under Section 69, where the assessee was not given an opportunity to cross-examine the statements relied upon. ITAT emphasized that the assessee should be provided with the materials and statements used against them and allowed to explain. The Assessing Officer (AO) did not conduct further inquiries to substantiate the statements, rendering the reassessment order invalid. The appeal by the assessee was allowed. .....

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