Acceptance of additional evidences filed by assessee without complying Rule 46A of the 1962 Rules is invalid, so was held by Income Tax Appellate Tribunal (ITAT), Allahabad.
The assessee, Tilak Proficient Nidhi Limited filed return of income, for assessment year 2017-18,declaring income of Rs 9,94,780/. The assessee has claimed to be engaged in business of financial services. The case of the assessee was selected by Revenue for framing scrutiny assessment. The notice under Section 143(2) of the 1961 Act were issued by AO to assessee through e-mail and Post. In response thereof the assessee’s counsel BhuvneshKesarwani, filed the necessary details.
The AO later issued notice under Section 142(1) through e-mail calling for various information, but the assessee did not comply with the said notice and no details as called for was submitted by assessee before the AO, which led AO to issue fresh notice dated which again remained un-complied with by the assessee. The AO proceeded to frame assessment based on material on record. While framing scrutiny assessment u/s 143(3) vide assessment order, the AO made three additions to the income of the assessee.
Aggrieved by assessment framed by AO, the assessee filed first appeal before CIT, deleted all the additions as in the opinion of the CIT no additions deserved merit and the assessee has explained all the additions as were made by AO, before CIT. It was further observed by CIT that the AO made high pitched assessment and passed a non-speaking non reasoned cryptic order in complete violation of principles of natural justice, and without specifying any of the discrepancies in the entries. Aggrieved by appellate order passed by CIT granting relief to the assessee, the Revenue came in appeal before the Tribunal.
The Bench consisting of Vijay Pal Rao, Judicial Member and Ramit Kochar, Accountant Member held that “The CIT simply accepted all the contentions /additional evidences filed by the assessee, without complying with Rule 46A of the 1962 Rules, as it was incumbent on CIT to have forwarded all these additional evidences/explanations filed by assessee to the AO for its remand report/comments/rebuttal. Thus, there is clearly a breach of Rule 46A of the 1962 Rule, which had made appellate order passed by CIT unsustainable in the eyes of law.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
