DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1, SHIVAMOGGA vs. SRI G S NAGARAJ, SHIVAMOGGA

The Revenue is aggrieved by the decision of the ld CIT(A) in partially deleting the addition made u/s 40a(ia) of the Act in respect of the transport charges paid by the assessee without deduction of tax at source.

None appeared on behalf of the assessee. We noticed that the that the Registry has sent notice of hearing by Registered Post to the assessee as well as authorized representative on earlier occasions. Hence, we proceed to dispose of the appeal ex-parte, without presence of the assessee.

We heard ld DR and perused the record. The ld DR submitted that the ld CIT(A) has granted partial relief to the assessee by accepting certain additional evidences without confronting the same to the assessing officer and the same is in violation of Rule 46A of the Income-tax Rules.

We find merit in the contentions of the ld DR. Accordingly we set aside the order passed by the ld CIT(A) and restore the same to his file for adjudicating the issue afresh by duly confronting the additional evidences with the AO. The assessee may also be given adequate opportunity of being heard.

In the result, the appeal of the revenue is treated as allowed for statistical purposes.