Opportunity to be heard requires admission of domicile and local authority evidence, remitting assessment for fresh decision.

Tribunal addressed whether additions under Section 69A could stand where the assessee asserted residence-based exemption but had not filed domicile or local authority certificates before the Assessing Officer. The Tribunal held that an assessee claiming exemption must be given an opportunity to file documentary evidence explaining source, nature of deposits and investments; where such evidence was not before the AO, the appropriate course is to remit for fresh adjudication. Operative effect: remand to the AO to admit and examine evidence and decide after affording a reasonable opportunity to the assessee.

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Issues: Whether the addition of Rs.76,73,350 under Section 69A of the Income-tax Act, 1961 (money deposited in bank) and Rs.10,00,000 under Section 69A of the Income-tax Act, 1961 (unexplained investment) could be sustained without the Assessing Officer considering domicile certificate, local authority certificate and other evidence filed in support of the assessee's claim of exemption under Section 10(26AAA) of the Income-tax Act, 1961.

Analysis: The Tribunal examined the record and noted that the assessee claimed exemption under Section 10(26AAA) of the Income-tax Act, 1961 and asserted residence in Meghalaya and engagement in trading of agricultural products, but had not furnished domicile or local authority certificates before the Assessing Officer. The Tribunal observed that even where exemption is claimed, the assessee must be afforded an opportunity to place documentary evidence explaining source and nature of deposits and investments. In the interest of fair play and justice, and because relevant certificates and evidence were not before the Assessing Officer, the Tribunal considered it appropriate to remit the matter for fresh adjudication so that the Assessing Officer may examine any evidence the assessee files and decide the issue after affording reasonable opportunity of hearing.

Conclusion: The matter is remitted to the file of the Assessing Officer for fresh decision after permitting the assessee to file relevant evidence and after affording a reasonable opportunity of hearing; appeal allowed for statistical purposes in favour of the assessee.

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