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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
आदेश /O R D E R
PER SHRI S BALAKRISHNAN, ACCOUNTANT MEMBER:
1. This appeal is filed by the assessee against order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, [hereinafter in short “Ld. CIT(A)”] vide DIN & Order No.
I.T.A.No.169/VIZ/2024 MALIPEDDI GIRIDHAR ITBA/NFAC/S/250/2023-24/1061235065(1) dated 21.02.2024 for the A.Y.2017-18 arising out of the order passed under section 144 of the Income Tax Act, 1961 (in short ‘Act’) dated 21.11.2019.
Brief facts of the case are that the assessee is an individual filed his original return of income admitting a total loss of Rs.16,64,434/- for the A.Y. 2017-18 on 22.09.2017. Later, on 02.02.2018 and 31.03.2018 assessee filed two revised returns admitting total income of Rs. 16,01,950/-. Subsequently, the case was selected for scrutiny under CASS based on the latest return filed by the assessee on 31.03.2018 and accordingly statutory notices under section 143(2) and 142(1) of the Act were issued and served on the assessee. In response, assessee did not comply with the notices except filing ITR and Tax Audit Report. Thereafter, Assessing Officer considering the non-compliance by the assessee completed the assessment under section 144 of the Act by making following additions under section 68 of the Act: -
a) Unsecured loans of Rs 76,87,947/-; b) Sundry creditors of Rs 2,48,55,217/- and c) Cash deposits of Rs 45,57,000/-
Further, Assessing Officer also disallowed Rs 10,54,065/- under section 40(a)(ia) of the Act, depreciation of Rs 6,24,965/- and expenditure of Rs.4,33,212/- u/s 37(1) of the Act.
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I.T.A.No.169/VIZ/2024 MALIPEDDI GIRIDHAR 4. Aggrieved by the order of the Ld. Assessing Officer, assessee filed appeal before Ld. CIT(A). Before Ld. CIT(A) assessee made written submissions by providing additional evidences. However, the Ld. CIT(A) has not considered the additional evidences as specified under Rule 46A(1) of I.T. Rules thereby rejected the additional evidences. Thereafter the Ld. CIT(A) considering the other submissions partly allowed the appeal of the assessee.
Aggrieved by the order of the Ld. CIT(A), assessee is in appeal before us by raising following grounds of appeal: -
The order of the learned Commissioner of Income Tax (Appeals) is contrary to the facts and also the law applicable to the facts of the case.
2. The learned Commissioner of Income Tax (Appeals) is not justified in refusing to admit the additional evidence and deciding the appeal without considering the additional evidence filed by the appellant. Without prejudice to the above: 3. The learned Commissioner of Income Tax (Appeals) is not justified in sustaining the addition of Rs.76,87,947 made by the assessing officer u/s 68 of the Act towards unexplained unsecured loans. 4. The learned Commissioner of Income Tax (Appeals) is not justified in sustaining the addition of Rs.2,48,55,217 made by the assessing officer u/s 68 of the Act towards unexplained sundry creditors. 5. The learned Commissioner of Income Tax (Appeals) is not justified in sustaining the addition of made by the assessing officer u/s 68 of the Act towards unexplained cash deposits in the bank account. 6. The learned Commissioner of Income Tax (Appeals) is not justified in sustaining the addition of Rs.6,24,965 made by the assessing officer towards disallowance of depreciation. 7. The learned Commissioner of Income Tax (Appeals) is not justified in sustaining the addition of Rs.3,48,212 made by the assessing officer towards disallowance of gift expenditure.
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I.T.A.No.169/VIZ/2024 MALIPEDDI GIRIDHAR 8. The learned Commissioner of Income Tax (Appeals) is not justified in sustaining the addition of Rs.84,990 made by the assessing officer towards disallowance of penalty/fine due to default in e-way bill. 9. Any other ground that may be urged at the time of hearing.
Ground Nos. 1 and 9 are general in nature and needs no adjudication.
For adjudication of other grounds, it is the contention of the Ld. Authorised Representative [hereinafter “Ld.AR”] that Ground No. 2 may be considered which is with regard to the admission of additional evidences which is core factor in deciding the appeal of the assessee. Ld.AR submitted that additional evidences were submitted before Ld. CIT(A) through ITBA portal on 14.02.2024, wherein evidence is placed at Page No. 48B of the paper book in Item No.18 seeking admission of additional evidences under Rule 46A of I.T. Rules. He pleaded that the Ld. CIT(A) has not considered the submission of additional evidences and has also not called for any remand report from the Assessing Officer and simply rejected the additional evidences filed by the assessee. He therefore pleaded that appropriate direction may be given to the Ld. CIT(A) to examine the additional evidences by calling for a Remand Report from the Assessing Officer and adjudicate the case on merits.
Per contra, Ld. Departmental Representative [hereinafter in short “Ld.DR”] relied on the orders of the revenue authorities.
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I.T.A.No.169/VIZ/2024 MALIPEDDI GIRIDHAR 9. We have heard both the sides and perused the material available on record and the orders of the revenue authorities. It is an undisputed fact that the assessee has uploaded additional evidences and prayed for admission before Ld. CIT(A) under Rule 46A of I.T. Rules. Ld. CIT(A) in his order at Para Nos. 8.6 to 8.8 observed as follows: -
“8.6 While there is no specific format specified under the Act, for submission of additional evidence, it is very apparent that the appellant has to prepare the application appropriately which should contain prayer for acceptance of the additional evidence along with the justification for admission of such evidence as specified under Rule 46A(1) of the Income Tax Rules, 1962. The CIT(A) is then required to consider the application and follow the procedure specified under Rule 46A. 8.7. The appellant has made no application requesting for the admission of additional evidence in the present appellant proceedings but has simply uploaded certain documents along with the filing of appeal. Needless to say no justification or explanation has also been given as to why these evidences were not produced before the assessing officer during the assessment proceedings. 8.8. In view of the above facts, the evidence submitted by the appellant in these proceedings cannot be considered for adjudication of the present appeal.”
With the above observations, we find that the Ld. CIT(A) has simply not accepted the additional evidences submitted by the assessee without examining them and neither calling for Remand Report from the Assessing Officer. We are therefore of the considered view that it shall deemed fit remit the issue to the file of Ld.CIT(A) to provide an opportunity to the assessee, following the principles of natural justice and therefore we direct Ld.CIT(A) to consider the additional evidences submitted by the assessee under Rule 46A of I.T. Rules by calling for Remand Report from the Assessing Officer and adjudicate the case on merits in Page No. 5
I.T.A.No.169/VIZ/2024 MALIPEDDI GIRIDHAR accordance with law. Needless to say, that assessee should cooperate with the Appellate Proceedings of the Ld. CIT(A) without seeking unwarranted adjournments. Since, Ground No. 2 relating to additional evidences is remitted back to the file of the Ld. CIT(A), we are not adjudicating the other grounds on merits.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 12th September, 2024.
Sd/- Sd/- (दुव्वूरु आरएल रेड्डी) (एस बालाकृष्णन) (DUVVURU RL REDDY) (S. BALAKRISHNAN) लेखा सदस्य /ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER Dated :.12.09.2024 Giridhar, Sr.PS आदेशकीप्रनतनलनपअग्रेनर्त/ Copy of the order forwarded to:- 1. निर्धाररती/ The Assessee : MALIPEDDI GIRIDHAR D.No.7-1-20, MGR Mall TK Street, High School Road East Godavari District – 533201 Andhra Pradesh 2. रधजस्व / The Revenue : THE ASST. CIT- CIRCLE-1 Income Tax Office Deepthi Towers Main Road, Kakinada - 533001 Andhra Pradesh 3. The Principal Commissioner of Income Tax 4. नवभधगीय प्रनतनिनर्, आयकर अपीलीय अनर्करण, नवशधखधपटणम /DR,ITAT, Visakhapatnam 5. The Commissioner of Income Tax 6. गधर्ा फ़धईल / Guard file //True Copy// आदेशधिुसधर / BY ORDER
Sr. Private Secretary ITAT, Visakhapatnam
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