GIRISH CHMANLAL SANGANI,MUMBAI vs. DCIT -CC-4(1), MUMBAI

Brief facts relevant for adjudication of the instant appeal are that the AO, vide assessment order dated 29.03.2023 passed u/s 147 r.w.s. 144 of the Act, disallowed alleged bogus purchases of Rs.7,63,66,445/- from M/s. Moksh Alloy Private Limited, as the Assessee failed to furnish purchase invoices, delivery challans, payment details and other supporting evidence.

The Assessee challenged the disallowance before the Ld. Commissioner and sought to rely upon certain additional evidence. The Ld. Commissioner declined to admit the same, inter alia, on the ground that no proper application under Rule 46A of the Income Tax Rules, 1962 had been filed and, in Column No. 12 of Form No. 35, the Assessee had stated that no additional evidence was being filed. Consequently, the disallowance was affirmed.

Before us, the Ld. Counsel referred to the replies dated 12.03.2025 and 08.07.2025 and submitted that the Assessee had sought admission of the additional evidence and remand of the matter for verification. The Ld. Counsel sought one opportunity to file an appropriate application under Rule 46A.

On the contrary, the Ld. DR supported the impugned order.

We have heard the parties and perused the material available on record. Admittedly, the Assessee did not file a proper application under Rule 46A before the Ld. Commissioner. Nevertheless, considering the magnitude of the disallowance of Rs.7,63,66,445/- and the nature of the evidence sought to be produced, we are of the view that the issue requires adjudication after due consideration of the relevant material, subject to the Assessee satisfactorily explaining the earlier non-production thereof.

Thus, considering the peculiar facts and circumstances, the case is remanded to the file of the Ld. Commissioner for

However, considering the conduct of the Assessee in not prosecuting the proceedings with due diligence, the aforesaid remand shall be subject to deposit of cost of Rs.11,000/- with the Revenue Department under the head “Other Receipts”, within 15 days from the date of receipt of this order. Proof of such deposit shall be furnished before the Ld. Commissioner.

In the result, the appeal filed by the Assessee is allowed for statistical purposes.