TaxTMI 
TaxTMI 
2021 (6) TMI 494
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....e AO, by entertaining the additional evidence under Rule 46A which was not produced before the AO during the course of assessment proceedings and thereby and contravening the provisions of Rule 46A (1) of the IT Rules. 2. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT (A) has erred in not giving a reasonable opportunity to the AO to examine the additional evidence submitted by assessee under Rule 46A, which was not produced before the AO during the course of assessment proceedings, and thereby contravening the provisions of Rule 46A (3) of the IT Rules. 3. The appellant prays that the order of Ld. CIT (A) on the above ground be reversed and that of the Assessing Officer be restored. 4. The appellant ....
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....formation is received from the assessee. Hence issued notice u/s. 133(6) of the Act on 04.10.2017 to Fidelity Mutual fund and HSBC Mutual fund respectively. In response to the notice, HSBC Mutual fund vide letter dated 30.10.2017 has submitted a copy of account statement of the assessee and the A.O. on perusal, found that the assessee has purchased units of mutual fund of Rs. 1 crore. Similarly in fidelity mutual fund (now L&T Mutual fund) statement the A.O. found that the assessee has purchased units of mutual fund of Rs. 1 crore on 10.10.2010. Since in spite of providing opportunity to the assessee and show cause letter dated 31.10.2017, the assessee could not explain the sources of mutual funds investment of Rs. 2 Crores. Therefore in th....
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....d granted the relief and allowed the assessee appeal. Aggrieved by the order of the CIT (A), the revenue has filed an appeal with the Honble Tribunal, challenging the action of the CIT (A) in deleting the addition made by the A.O. and accepting the additional evidence under Rule 46A of the IT Rules and the A.O. was not provided opportunity to verify the additional evidences. 4. At the time of hearing, the Ld. DR submitted that there is gross violation of Rule 46A of the IT Rules and on perusal of the explanations made by the assessee at para 5 of the CIT (A) order. The assessee has submitted the details in the appellate proceedings and the CIT (A) has observed that these investments are supported by documentary evidence and granted the re....
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....ssessee before the A.O. has filed the return of income in response to notice u/s. 148 of the Act. When the notice u/s. 142(1) of the Act was issued twice and the show cause notice, there was no compliance. The assessee has submitted the details for the first time before the CIT (A) referred at para 5 of the CIT (A) order and the said information was not submitted before the A.O. for various reasons. We are of the considered opinion that, the assessee has to comply with Rules and regulations. when the documents were submitted for the first time before the CIT (A) the provisions of Rule 46A shall equally applicable. Accordingly, we find that there is a violation of Rule 46A as the A.O. was not provided an opportunity to verify and examine the....