The assessee challenged the assessment order on the ground of violation of the principle of natural justice wherein the Assessing Officer made an addition in respect of the Loan received from Mr. R. Srnivasan. Dismissing the petition the Court held that the lender has given the loan to the Company in which the assessee is also one of the directors. The appeal of the company is pending before the CIT(A). The court held that on the facts the violation of the principle of natural justice is not fatal.  The assessee was directed to file an appeal before the CIT(A). The Court also held that the powers of an appellate authority are co-terminus with that of an Assessing authority to ensure that the asseee was granted the full opportunity to put forth the case in appeal. (AY. 2012-13)