CIT(A) Refuses to Admit Additional Evidence: ITAT Remands Matter for Fresh Adjudication [Read Order]

The Cochin Bench of Income Tax Appellate Tribunal(ITAT) remanded the case for fresh adjudication after the Commissioner of Income Tax(Appeals)[CIT(A)] refused to admit additional evidence.

Abdulrahiman Abdulkadar,appellant-assessee,engaged in the business of travel agency filed his income tax return for AY 2017-18 on 04.08.2017, declaring an income of Rs. 4,03,170/-. The AO completed the assessment on 04.10.2018, raising the total income to Rs. 7,11,170/-. The AO added Rs. 3,98,000 under section 69A for unexplained money.

The assessee appealed before the CIT(A),who dismissed the appeal and did not admit the additional evidence filed by the assessee. The assessee aggrieved by the CIT(A) decision appealed before the tribunal.

Read More: CIT(A) failed to Admit Additional Evidence as Stipulated under Rule 46A: ITAT directs Fresh Adjudication

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A single member bench comprising Inturi Rama Rao(Accountant Member)  found that the CIT(A) dismissed the appeal without admitting the additional evidence supporting the source of the cash deposit, citing the lack of an application under Rule 46A. However, it was noted that the appellant had filed such an application, which the CIT(A) had ignored.

Rule 46A of the Income Tax Rules, 1962, limits the submission of new evidence during an appeal unless there is a valid reason. It applies if the assessee could not present the evidence earlier, the Assessing Officer (AO) refused to accept it, or the AO made a decision without giving a fair chance. If new evidence is allowed, the AO must review and respond to it. This rule ensures a fair appeal process while preventing misuse.

Read More:Non-Acceptance of Fresh Evidence u/r 46A: ITAT remands Income Tax Appeal to CIT(A)

As a result, the tribunal remanded the case to the CIT(A) for fresh adjudication, giving the assessee a chance to present their case. All points raised by the assessee were kept open for consideration.

In short,the appeal filed by the assessee was allowed for statistical purposes.

To Read the full text of the Order CLICK HERE

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