Denial of Hearing: ITAT directs Fresh Adjudication of Addition at 8% of the Gross Profit

In a case involving the denial of a hearing, the Income Tax Appellate Tribunal (ITAT) ruled that a fresh adjudication is required for the addition of gross profit. The issue arose when the assessing officer failed to offer a proper hearing to the taxpayer, breaching procedural fairness. ITAT emphasized the importance of natural justice, which necessitates that taxpayers be provided with an opportunity to present their case. The ruling mandates a reconsideration of the addition to the gross profit, ensuring that due process is followed in the determination of tax liabilities.