Plea of natural justice breach/ cross-examination should be raised at the earliest opportunity

The principles of natural justice cannot be construed in isolation from the factual matrix of the case. Though the inspectors’s report was not given to the assessee, the contents thereof were communicated, the identity of the persons question was given and the manner in which the enquiry was held was also set out and the assessee was given a chance to explain. Accordingly, the principles of natural justice were substantially complied with At the assessment stage, the assessee did not feel prejudiced categorically indicated that it had submitted whatever materials were within its possession and did not have anything more to submit. It did not ask for a copy of the report or for cross-examination of the inspector. If a party fails to avail of the opportunity to cross-examine a person at the appropriate stage in the proceeding, the said party would be precluded from raising such issue at a latter stage of the proceeding. Plea of violation of natural justice taken at the appellate stage is an afterthought.

 Hindusthan Tobacco Company vs. CIT (Calcutta High Court)