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Facts
The assessee filed an appeal against the order of the Ld. CIT(A) who dismissed the appeal. The assessee claimed that the AO did not provide sufficient opportunity and additional evidences filed before the Ld. CIT(A) were not admitted.
Held
The Tribunal held that the AO did not provide sufficient opportunity and the assessee had valid reasons for not filing the evidences earlier. The Ld. CIT(A) erred in not admitting the additional evidences.
Key Issues
Whether the Ld. CIT(A) was justified in not admitting additional evidences filed by the assessee and dismissing the appeal without affording a reasonable opportunity of being heard.
Sections Cited
250, 143(3), 46A
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Income Tax Appellate Tribunal, DELHI “B” BENCH: NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI MANISH AGARWAL
The present appeal has been filed by the assessee against the order dated 28.03.2024 passed by Ld. Commissioner of Income Tax (A)-26, New Delhi [“Ld.CIT(A)”] in Appeal No.10057/2020-21 passed u/s 250 of the Income Tax Act, 1961 [“the Act”] arising from the assessment order dated 30.12.2022 passed u/s 143(3) of the Act pertaining to assessment year 2021-22.
The Ld. Counsel for the assessee submitted that the AO at the fag end of the proceedings has issued show cause notice asking the assessee to file details with regard to application claimed. In response thereto, the assessee could not file the requisite details intoto. Therefore, before Ld.CIT(A), certain additional evidences were filed in support of the submissions made. The Ld.CIT(A) has not admitted these additional evidences and dismissed the appeal of the assessee. Before us, Ld.AR for the assessee stated that the additional evidences so filed goes to the root of the matter and therefore, Ld.CIT(A) ought to have admitted the same before rejecting the appeal of the assessee. Page | 1
Per contra, the Ld.CIT DR for the Revenue has not objected if the said evidences were admitted and matter be sent back to the lower authorities for fresh examination.
We have heard the rival contentions and perused the material available on record. We find that the AO has not provided sufficient opportunity to the assessee to explain its case, therefore, the assessee could not be able to file the evidences before the AO as and when called for. These facts were brought to the notice of Ld.CIT(A) alongwith the petition under Rule 46A of the Income Tax Rule, 1962. However, the Ld.CIT(A) has failed to appreciate the same and rejected the additional evidences filed by assessee. We find that there were sufficient reasons in not filing the said evidences before the AO as the circumstances were beyond the control of the assessee. Therefore, in the interest of justice, we hereby direct the Ld.CIT(A) to admit these additional evidences and decide the appeal in accordance with law after considering the additional evidences so filed and affording reasonable opportunity of being heard to the assessee.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 26.05.2025.