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Facts
The Revenue appealed against the CIT(A)'s order which deleted an addition based on the difference between gross receipts and Form 26AS. The CIT(A) had admitted additional evidence without confronting it to the AO.
Held
The Tribunal held that admitting additional evidence in violation of Rule 46A of the IT Rules without confronting it to the AO is a procedural lapse. Therefore, the issue needs to be restored to the AO for fresh examination.
Key Issues
Whether admitting additional evidence by the CIT(A) without confronting it to the AO violates Rule 46A of IT Rules and warrants restoration of the issue to the AO.
Sections Cited
Rule 46A
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Income Tax Appellate Tribunal, MUMBAI “A” BENCH : MUMBAI
Before: SHRI B.R. BASKARAN & SHRI ANIKESH BANERJEE
O R D E R PER B.R. BASKARAN, A.M :
The Revenue has filed this appeal challenging the order dated 10-09-2024 passed by the Ld CIT(A), NFAC, New Delhi and it relates to the Assessment Year (AY.) 2021-22. The Revenue is aggrieved by the decision of the Ld CIT(A) in deleting the addition of difference between the gross receipts declared by the assessee and that is available in Form No.26AS. It is the case of the Revenue that the Ld CIT(A) has granted relief by admitting additional evidences in violation of Rule 46A of I T Rules without confronting the same to the AO.
We heard the parties. Since the Ld CIT(A) has admitted and considered additional evidences without confronting them with the AO, there is violation of Rule 46A of I T Rules. Hence, we are of the view that the impugned issue needs to be restored to the file of the AO. Accordingly, we set aside the order passed by Ld CIT(A) and restore the impugned issue to the file of the AO for examining it afresh duly considering the additional evidences that were filed before Ld CIT(A) and also such other information and explanation that may be furnished by the assessee. We also direct the assessee to fully co-operate with the AO to complete the restored proceedings expeditiously.
In the result, the appeal filed by the Revenue is treated as allowed for statistical purposes.