Delhi High Court sets aside assessment as Cross-Examination Denied

The dispute concerned a ₹1 crore addition based on a seized slip recording ₹10,000 and a witness’s statement that three zeros had been deliberately omitted. After an earlier assessment was quashed for denying cross-examination, the assessee missed the first scheduled date but attended a second hearing when the witnesses failed to appear. The High Court held that, having granted the second opportunity, the Department could not revert to treating the assessee as having forfeited the right. It set aside the fresh assessment and directed another opportunity, with costs payable to the witnesses.