TaxTMI 
TaxTMI 
2017 (5) TMI 119
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....rred in not adjudicating the relief claimed by the appellant vide ground no 1 of the grounds of appeal; being that in the facts and circumstances of the appellants case the order passed by the Id.AO is bad in law and deserved to be annulled. 1.1 In law and in facts and circumstances of the case, the order passed by the Id.AO in this case is bad in law and deserves to be annulled. 2. In law and in facts and circumstances of the case, the Id.AO grossly erred in not considering the additional evidences submitted before him under rule 46 A of the Income Tax rules. 3. In law and in the facts and circumstances of the case, the Id. CIT (A) has grossly erred in upholding the impugned disallowance of interest expense amounting to Rs. 45,68,....
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....me of the assessee. The assessment order is in Hindi. Computation made by the AO has been reproduced by the assessee in the statement of facts filed before us and that computation reads as under: Particulars Amount (Rs.) Income as per return of income 9,66,860 Additions: Vide para-5 of the Assessment Interest Expense 45,68,876/- House Property Loss 1,50,000/- Additions: Vide Para-6 of the Assessment order: Unexplained cash credit u/s.68 of the Act 2,45,00,000/- Assessment Income (Rounded off u/s.288A) 3,01,85,740/- 5. A perusal of the assessment would indicate that the ld.AO has disallowed interest expenditure of Rs. 45,68,876/- whose disallowance has been challenged by the asses....
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....nded that as far as addition of Rs. 2.45 crores with the aid of section 68 of the Act is concerned, the assessee has submitted confirmation and copies of bank accounts of the creditors. The AO has basically did not accept this evidence for not fulfilling the ingredients of section 68 on the ground that notice issued under section 133(6) of the Act to these lenders received back unserved. The ld.AO further observed that the assessee failed to submit copy of the income tax return and other evidences. The ld.counsel pointed out that the AO has started inquiry in the month of March, 2015. Show cause notice is dated 10.3.2015 and he passed assessment order on 30.3.2015. The AO has never intimated the assessee that summons have not been served to....
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....t if an assessee fulfills the conditions enumerated in sub-clause (a) to (d) of Rule 46A(1) then the ld.CIT(A) would permit an assessee to produce additional evidence. That additional evidence would be confronted to the AO for rebuttal, and thereafter issue would be decided on merit. Conditions enumerated in clause (a) to (d) under Rule 46A reads as under: "46A. (1) The appellant shall not be entitled to produce before the [Deputy Commissioner (Appeals)] [or, as the 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 Off....
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....tion of any witness, to enable him to dispose of the appeal, or for any other substantial cause including the enhancement of the assessment or penalty (whether on his own motion or on the request of the [Assessing Officer]) under clause (a) of sub-section (1) of section 251 or the imposition of penalty under section 271.] 9. A perusal of the assessment order would indicate that the AO has never asked assessee to produce copies of acknowledge exhibiting return filed by the lenders. He has issued one show cause notice to the assessee and thereafter issued summons under section 133(6). He did not confront the assessee whether summons have been served upon lender or any other evidence would be required. The reason for this failure was paucit....