Rule 46A evidence and remand review can bar a fresh assessment where long-term capital gain claim is already examined.

A remand and Rule 46A admission of additional evidence had already enabled examination of the assessee's claim arising from an ex parte assessment under section 144. The record showed support for indexed cost of construction and exemption under section 54, and the Assessing Officer raised no adverse finding on the house construction, valuation report, purchase of the new property, or construction withdrawals. In these circumstances, setting aside the assessment for a fresh round was unjustified. The assessee's claim of nil long-term capital gain was accepted, and no addition was warranted on that issue.

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Issues: Whether the Commissioner (Appeals) could validly set aside an ex parte assessment made under section 144 of the Income-tax Act, 1961 after admitting additional evidence and obtaining a remand report, and whether the addition on account of long-term capital gain was sustainable.

Analysis: The assessment had been framed ex parte under section 144. The assessee produced additional evidence before the appellate authority under Rule 46A of the Income-tax Rules, 1962, and the Assessing Officer examined the material in remand proceedings. The record showed that the assessee had supported the claim of indexed cost of construction and exemption under section 54, and the Assessing Officer did not record any adverse finding against the material relating to the constructed house, valuation report, purchase of the new property, and withdrawals claimed for construction. In these circumstances, the issue stood substantially examined in the assessment and remand proceedings, leaving no basis to send the matter back for a fresh assessment.

Conclusion: The set-aside by the Commissioner (Appeals) was held to be unjustified, the assessee's claim of nil long-term capital gain was accepted, and no addition on this issue was warranted.

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