M/S. RAVINA & ASSOCIATES PVT. LTD.,NEW DELHI vs. ACIT, NEW DELHI

We have heard arguments of both the sides and carefully perused the contentions of the assessee in the said application inter alia assessment order and impugned order of the CIT(A). From the facts noted from the orders of the authorities below it is clear that the AO made addition on notional basis of Rs. 9,01,053/- representing interest allegedly accrued to the assessee on the bank balance lying in an account with Natwest Bank an account of letter of rogatory issued by CBI Judge. We are also satisfied that the assessee has received evidence in the shape of confirmation dated 8.6.2013 from Natwest Bank, London favouring its case showing that no interest was credited to the accounts of the assessee for the period under consideration.

The Ld. DR could not controvert this fact that appeal has been filed on 26.7.2013 after delay of 600 days due to this bonafide reason that the assessee could be able to collect evidence favouring his case only on 8.6.2013.

In view of above, we are satisified that in absence of required relevant evidence the assessee could not file appeal on or before 3.12.2011 within prescribed period due to reasons beyond his control hence, delay in filing appeal is condoned and appeal is admitted for hearing on merits.

We have heard arguments of both the sides and carefully perused the material placed on the record by way of present application the assessee seeks to place on record confirmation dated 8.6.2013 issued by Netwest Bank, London confirming the fact that no interest was credited to the bank A/c. of the assessee for the relevant period. The Ld. DR could not controvert this fact that this said confirmation has not available with the assessee clearing assessment and first appellate proceedings hence, the assessee has sufficient reason which prevented it to submit the same before the authorities below. In view of above, we are of the considered opinion that the additional evidence deserves to be admitted and thus no admit the same. Consequently, the application of the assessee under rule 29 of IT(AT) Rules, 1963 is allowed.

Since by the earlier part of this order, we have admitted additional evidence which was not submitted before the AO & CIT(A), hence, to meet ends of the justice the case is restored to the file of the AO for limited purposes to readjudicate the issue of notional interest on the balance of assessee which Netwest Bank with a direction that he shall decide the issue afresh after affording due opportunity of hearing