ACIT-7(1)(1), MUMBAI, MUMBAI vs. LOBO STAFFING SOLUTIONS PVT. LTD., MUMBAI

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ITA 5756/MUM/2024Status: DisposedITAT Mumbai05 February 2025Bench: SHRI B.R. BASKARAN (Accountant Member), SHRI ANIKESH BANERJEE (Judicial Member)3 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

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.

What were the 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.

What were the 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.

Which sections of the Income-tax Act were involved?

Rule 46A

AI-generated summary — verify with the full judgment below

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.

2.

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.

3.

In the result, the appeal filed by the Revenue is treated as allowed for statistical purposes.

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