DEVCHHAYA INDUSTRIES,,PUNE vs. ASSISTANT COMMISSIONER OF INCOME-TAX,,

This appeal is listed in view of order dated 08-09-2020 in MA No. 01/PUN/2017 arising out of 2009-10 for adjudication of ground No. 2.

Ground No. 2 raised by the assessee in Form No. 36 in is reproduced as under :

We note that the assessee filed additional evidences before the CIT(A) which is reflected at para 10 in the impugned order. The CIT(A) sought remand report from the AO regarding the admissibility of additional evidences. The AO held the contents of letter dated 26-12-2011 have been dealt in the assessment order itself and requested the CIT(A) not to accept the same as additional evidence. Basing on which the CIT(A) rejected the copy of letter dated 26-12-2011 and admitted other additional evidences in Sl. No. 2 to 4. We note that in page 13, the CIT(A) observed that the assessee has not been able to explain the compelling circumstances under which the same could not be filed before the AO during the course of assessment proceedings and held the letter dated 26-12-2011 (additional evidences) contradicts the statement given before the AO u/s. 131 of the Act which clearly establishes, in our opinion, contradiction in CIT(A)’s observation. That is, in one way, he opined, that the assessee failed to give compelling reasons for non-filing before the AO and in other way, he examined the letter dated 26-12-2011 and held the contents therein are contradictory to statement recorded u/s. 131 of the Act. The CIT(A) admitted the other additional evidences, but however no explanation whatsoever given by the CIT(A) for rejection of the additional evidences of letter dated 26-12-2011 independently. The contention of ld. AR is that the contents of letter dated 26-12-2011 goes to the root of matter and non- consideration of the same would have vital impact on the result of main appeal. Therefore, as discussed above for not giving specific finding for rejection of additional evidence of letter dated 26-12-2011, we deem it proper to remand the issue to the file of CIT(A) for his examination. The assessee is liberty to file evidences, if any, in support of its claim. The CIT(A) shall grant reasonable opportunity of hearing to the assessee and pass order. Thus, ground No. 2 raised by the assessee is allowed for statistical purpose.

In the result, the appeal of assessee is allowed for statistical purpose.