The Tribunal allowing the appeal held that, the statements of persons were recorded by the AO u/s.131 behind the assessee’s back and used against him without granting an opportunity of cross-examination of these witnesses in the ex parte assessment order u/s. 144. The observation of the CIT(A) that failure to provide cross-examination was not a fatal flaw as they were witnesses of the assessee and not independent unrelated parties was in gross violation of principles of natural justice. The matter set as side to AO to decide afresh after granting opportunity of cross-examination of the witnesses whose statements were recorded u/s.131. (AY. 2017-18)