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Facts
The assessee appealed against the confirmation of an addition of Rs. 34,81,180/- on account of unexplained cash deposit for Assessment Year 2010-11. The Assessing Officer had issued notices under section 142(1), but the assessee failed to file a return of income or provide sufficient compliance. Consequently, the CIT(A) rejected the assessee's application for admission of additional evidences under Rule 46A.
Held
The Tribunal admitted the additional evidence, acknowledging that the assessee could not prepare and produce the details before the lower authorities in time. The matter was set aside and remanded to the Assessing Officer with a direction to consider the newly admitted additional evidence and any other evidence the assessee may file, grant an opportunity of being heard, and pass a fresh reasoned order.
Key Issues
Admissibility of additional evidence under Rule 46A by the Tribunal; Re-adjudication of unexplained cash deposit after considering new evidence.
Sections Cited
Section 142(1) of the Income Tax Act, Rule 46A of the Income Tax Rules
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Income Tax Appellate Tribunal, DELHI BENCH: ‘SMC’ NEW DELHI
Before: MS MADHUMITA ROY
PER MADHUMITA ROY, JUDICIAL MEMBER
The instant appeal filed by the assessee is directed against an order dated 22.11.2023 passed by Learned Commissioner of Income Tax (Appeals) National Faceless Appeal Centre(NFAC), New Delhi, arising out of the order dated 22.12.2017 passed by the Income Tax Officer(Exemption) Ghaziabad, whereby and whereunder the addition to the tune of Rs. 34,81,180/- on Page1 account of unexplained cash deposit made by the Assessing Officer has been confirmed.
The assessee before us, filed an application for additional evidences before the Learned CIT(A) under Rule 46A of the Act. As the assessee was given sufficient opportunity by the Assessing Officer to explain its case, notice under section 142(1) of the Act was issued on several occasions followed by show cause notice dated 09.10.2017, the assessee did not file the return of income nor made sufficient compliance, the Learned CIT(A) rejected the application for admission of additional evidences under Rule 46A of the Act.
Under this facts and circumstances of the matter, the Learned counsel appearing for the assessee submitted before us that the additional evidence filed before the CIT(A) goes to the root of the matter, required to be considered for appropriate adjudication of the issue involved therein and the same be admitted by the Bench. Such submissions has not been controverted by the Learned DR with all his fairness.
Having heard the Learned Counsel appearing for the Page2 parties, having regard to the facts and circumstances of the case as the assessee could not prepare the details in time and thus not been able to place though called upon to produce by the Learned Assessing Officer, as submitted by the Learned AR, the same are hereby admitted and are sent to be considered by the Learned AO afresh.
The issue is, thus, set aside to the file of the Learned AO with a direction upon him to consider the same and decide afresh upon considering the evidence on record, additional evidences admitted by the Bench, and any other evidence which the assessee may choose to file at the time of hearing of the matter. The Learned AO is further directed to grant an opportunity of being heard to the assessee and to pass a reasoned order.
Order pronounced in the open court on 07th November, 2024.