TaxTMI 
TaxTMI 
2015 (9) TMI 1
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....y admitting additional evidences during the appellate proceedings inspite of several opportunities provided by the AO to produce the same at the assessment/remand stage. 3. That the ld. CIT(A) has erred in law and facts of the case by not adjudicating on each issue involved in this case i.e. i) addition of Rs. 11,74,314/- out of repair and maintenance expenses, ii) disallowance of Rs. 39,83,428/- being freight and forwarding expenses, iii) disallowance of Rs. 29,29,334/- being advertisement publicity & sales expenses, iv) addition of Rs. 2,66,465/- being unexplained credit in the name of M/s Graphic Concepts and v) disallowance of Rs. 6,07,100/- being unexplained expenditure." 3. Apropos these grounds, we have heard both the sides and care....
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....details and documents furnished by the assessee and the ld. CIT(A) deleted the impugned additions without any reasoning and adjudication. 7. The ld. DR further pointed out that Rule 46A of IT Rules provides that the assessee cannot produce additional evidence during first appellate proceedings except certain circumstances stating therein in the rule. 8. The ld. DR further pointed out that if the ld. CIT(A) was of the view that the assessee was not given due opportunity of hearing during the assessment proceedings then also the ld. CIT(A) was duty bound to afford opportunity to verify/examine and comment on the details, evidence and explanation of the assessee filed as additional evidence under rule 46A of the IT Rules 1962. 9. Replying t....
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....nd report of the AO on the additional evidence, detailed explanation submitted by the assessee under rule 46A of the IT Rules 1962 and admit the same by holding that the assessee was not granted due opportunity of hearing before the AO and this action of the AO prevented the assessee to file supportive detailed and explanation during the assessment proceedings. 13. At the same time, we also observed that the ld. CIT(A) did not allow the AO to comment on the merits of the additional evidence and explanation and considered the same for granting relief to the assessee. 14. From operative part of the impugned order, we observed that the ld. CIT(A) granted relief for the assessee with following observations and conclusion: "6.3 I have careful....
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....he AO has failed to do this and despite time available for completing the assessment from the limitation point of view, he has not afforded proper opportunity to the assessee and has made arbitrary additions in a slipshod manner. The notices were also not sent at the correct address as mentioned earlier in this order. The details submitted at the assessment stage have not been taken into account by the AO while making the above ex parte additions. Further, the appellant has produced voluminous details during appellate proceeding consisting of the audited statement of accounts, tax audit reports, copy of replies filed before the AO giving details and documents, complete details of expenses including copies of ledger accounts, bills & vouche....