TOWNHOMES VILLAS AND APPARTMENTS PRIVATE LIMITED,ERNAKULAM vs. NATIONAL FACELESS ASSESSMENT CENTRE, DELHI

At the outset, we note that the assessee has filed additional documents during the appellate proceedings which were not admitted by the learned CIT(A) as there was no application filed by the assessee under rule 46A of the Income Tax Rules, 1962.

At the time of hearing, the learned counsel for the assessee before us submitted that the AO has made an addition for Rs.3,49,00,000/- under the provisions of section 69B of the Income Tax Act, 1961 (the Act) on the 164/Coch/2024 Townhomes Villas and partments Pvt Ltd. reasoning that the assessee was liable for making payment of Rs.6,65,00,000/- as per the agreementwhereas the assessee has paid only Rs.3,16,00,000/- only. Accordingly, the AO was of the view that there is unaccounted payment made by the assessee for Rs. 3,49,00,000/- only. As per the learned A.R. the difference as observed by the AO was paid in the subsequent year after passing the assessment order. Therefore, the allegation as raised by the AO is not sustainable which was justified based on the additional evidence filed before the ld. CIT-A. However, the learned CIT(A) did not admit the same. The learned A.R. accordingly prayed before us to restore the issue to the file of the AO for verification as per the provisions of law.

The learned CIT-DR did not raise any objection if the matter is set aside to the file of the AO for fresh adjudication as per the provisions of law.

We have heard the rival contentions of both the parties and perused the materials available on record. Considering the fact that the amount involved in the dispute has been paid by the assessee in the subsequent year which is evident from the additional document filed by the assessee before the learned CIT(A). Indeed, such additional document is crucial for deciding the issue on hand. Otherwise, the addition made by the AO will be sustained without considering the additional documents filed by the assessee. In our considered view, a meritorious case should not be dismissed due to technical lapses. Therefore, in the interest of justice and fair play we are inclined to give one more opportunity to the assessee to represent its case before the AO. Accordingly, we set aside the findings of the learned CIT(A) and restore the issue to the file of the AO for fresh verification and adjudication as per the provisions of law. Hence the ground of appeal of the assessee is hereby allowed for statistical purposes.