2024 (10) TMI 754 - HC - Income Tax

Court Overturns Rejection, Orders Reconsideration for Tax Claim Due to New Evidence Submission Opportunity.

The HC allowed the petition, setting aside the impugned order and remanding the matter to the AO for reconsideration. The AO initially rejected the claim ... Validity or order passed - proof of amount was received prior to 01.04.2011 - genuineness and authenticity of Tax Audit Report not accepted - HELD THAT:- A perusal of the material on record would indicate that the respondent-Assessing Officer has refused to accept the Tax Audit Report by Chartered Accountant on the ground that the schedule and Annexures were not signed by the partner of the CA Firm and contained only signature of the assessee. AO has also come to the conclusion that the Bank Statement of the petitioner and other documents had not been produced and consequently, proceeded to reject the claim of the petitioner. However, in the light of the specific contention urged on the part of the petitioner that if one more opportunity is provided, the petitioner would produce additional documents to substantiate his claim and also establish genuineness and authenticity of Tax Audit Report by making necessary submissions in this regard before the AO, we deem it just and appropriate to set aside the impugned order and remit the matter back to the AO for reconsideration afresh in accordance with law. The petitioner sought to quash an order rejecting their claim for A.Y. 2012-13. The High Court allowed the petition, setting aside the impugned order and remitting the matter back to the Assessing Officer for reconsideration. The Assessing Officer rejected the claim due to insufficient material, but the petitioner will have an opportunity to produce additional documents to substantiate the claim. The Tax Audit Report was not accepted initially, but the petitioner can establish its genuineness in the reconsideration process.