NEERAJ MALIK,GHAZIABAD vs. ITO, GHAZIABAD

The Ld. Counsel for the assessee at the outset submitted that due to illness of the sister of the assessee he was unable to appear before the AO and filing the requisite details for which the assessment was completed u/s. 144 of the IT Act. Although the assessee filed various evidences before the CIT(A) requesting him to admit the same as additional evidences under Rule 46 A of the IT Rules, however, the Ld. CIT(A) without considering the additional evidences filed before him sustained the addition made by the AO. He submitted that in the interest of justice the assessee should be given an opportunity to substantiate his case either before the AO or before the CIT(A) as the Bench deems proper. Page | 2

The Ld. DR on the other hand heavily relied on the order of the CIT(A) and submitted that despite repeated opportunities granted by the AO the assessee never appeared before him for which he was constrained to pass the exparte order. No justifiable reasons were given before the CIT(A) for admission of the additional evidences. Therefore, the Ld. CIT(A) was fully justified in upholding the order of the AO and in not admitting the additional evidences filed before him.

We have considered the rival arguments made by both the sides and perused the orders of the authorities below. We find the assessee in the instant case has purchased an immovable property alongwith three more persons for a consideration of Rs.5,16,71,000/-. Since the assessee did not appear before the AO and filed the explanation regarding the source of such investment, the AO invoking the provisions of section 144 of the IT Act completed the assessment wherein he made addition of Rs.1,39,47,250/- as unexplained investment for purchase of the property. We find although the assessee filed cer?tain additional evidences, however, the Ld. CIT(A) did not admit the same on the ground that none of the conditions laid down in Rule 46 A are fulfilled in the case of the assessee. It is the submission of the Ld. Counsel for the assessee that due to the illness of the sister of the assessee he was disturbed and was not in a position to file the requisite details before the AO for which he moved an application under Rule 46 A before the CIT(A) to admit the additional evidence as he was prevented from sufficient causes in not filing of the details. It is also his submission that in the Page | 3 interest of justice the assessee should be given an opportunity to substantiate his case before the lower authorities. Considering the totality of the facts of the case and in the interest of justice we deem it proper to restore the issue to the file of the AO with a direction to give one final opportunity to the assessee to substantiate his case and decide the issue as per fact and law. The assessee is also hereby directed to appear before the AO and file requisite details failing which the AO is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised