TaxTMI 
TaxTMI 
2006 (7) TMI 532
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....ence by the ld. CIT(A). The ld. counsel for the assessee at the very outset submitted that this ground be taken as preliminary ground of appeal and if assessee succeed on this ground then the impugned order would be deserves to be set aside for re-adjudication. 3. The brief facts of the case are that the ld. Assessing Officer had made an addition of Rs. 21,98,000 on account of unexplained cash credits available in the books of assessee. Dissatisfied with this addition assessee carried the matter in appeal before ld. CIT(A) and he filed additional evidences under rule 46A of the Income-tax Rules in order to explain the cash credits appeared in his books. The ld. first appellate authority after receiving the additional evidence called for ....
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....case may be, the Commissioner (Appeals), any evidence, whether oral or documentary, other than the evidence produced by him during the course of proceedings before the Assessing Officer, except in the following circumstances, namely :- (a )where the Assessing Officer has refused to admit evidence which ought to have been admitted; or (b)where the appellant was prevented by sufficient cause from producing the evidence which he was called upon to produce by the Assessing Officer; or (c )where the appellant was prevented by sufficient cause from producing before the Assessing Officer any evidence which is relevant to any ground of appeal; or (d)where the Assessing Officer has made the order appealed against without giving sufficien....
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....ions are specified in clauses (a) to (d). Whenever any additional evidence is produced before the first appellate authority under the Income-tax Act then the appellate authority i.e. DCIT(A) or CIT(A) would record reasons in writing for admitting such additional evidence, as per the requirement of sub-rule (2). 6. After permitting an assessee to adduce additional evidence next stage would come that Assessing Officer is to be granted an opportunity to examine the evidence or the documents or to examine the witness produced by the appellant. The Assessing Officer would further be at liberty to produce any other evidence in rebuttal of the additional evidence produced by the assessee. Thus on reading of all these three sub-rules it is impli....
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....sessee is essential for the just decision of the appeal or for the substantial cause of justice, it is necessary to call such material on record. In that situation interdiction provided in sub-rules (1) and (2) would not come in its way. In view of the above we are of the opinion that ld. CIT(A) has wrongly refused to admit the additional evidence produced by the assessee and his order deserves to be set aside. 7. Since we are of the view that the order of the ld. CIT(A) deserves to be set aside then the next issue arises where to restore this issue for verification and re-adjudication, whether at the file of ld. CIT(A) or the Assessing Officer. Ordinarily when the order of the first appellate authority is set aside then issue is to be r....