TaxTMI 
TaxTMI 
2022 (12) TMI 66
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....46,585/- and ignoring that the difference between these two sums i.e. Rs 52,42,031/- was already allowed by the Ld. Assessing Officer by passing order of rectification under Section 154 of the Act (copy enclosed). 3. The Ld. CIT(A) has erred in law and on facts in (i) not appreciating the specific reasons given in submissions dated 25th April, 2019 which prevented the appellant from producing the Chartered Accountant's (CA's) certificate confirming that payees of interest have shown interest income in their respective returns of income and paid tax on the same in accordance with the amended provisions of section 201 of the Act, and holding that 'sufficient time was granted to the Appellant, and (ii) not entertaining the evidence (i.e. CA's certificates u/s 201 (1) of the Act) on the ground that no application under Rule 46A is made though the requirements of Rule 46A were fully met and even remand report from the Assessing officer had been called and replied by the Appellant. 4. The Ld CIT (A) has erred on facts and in law in confirming disallowance of the aforesaid interest made by the Ld. Assessing Officer for non-deduction of TDS u/s 40(a)(ia) r.w.s 194A of the Act ignor....
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....t) determining the total income at Rs.3,77,40,060/- as against the returned income of Rs.2,21,55,940/-. The additions made in the aforesaid assessment order included Rs.1,41,84,866/- made by the Assessing Officer by invoking section 40(a)(ia). This amount included Rs.74,88,616/- being interest on loan borrowed from M/s Reliance Capital Limited and Rs.66,96,250/- being interest on loan borrowed from M/s. Bajaj Finance Limited. The Assessing Officer noted that the assessee had not deducted tax at source (TDS) in respect of interest payments u/s 194A of IT Act. Invoking section 40(a)(ia), he made aforesaid addition totaling Rs.1,41,84,866/-, which was confirmed by the learned CIT(A) vide aforesaid impugned appellate order dated 16/07/2019 of learned CIT(A). The assessee filed this present appeal in Income Tax Appellate Tribunal ("ITAT" for short) against the aforesaid impugned appellate order of Ld. CIT(A). In the course of appellate proceedings in ITAT, paper book containing 229 pages was filed from the assessee's side containing the following particulars: S. No. Particulars 1. Copy of computation of income along with the Income Tax Return for the financial year ended 31/03/201....
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....d before the Assessing Officer during the assessment proceedings because these were not available with the assessee on 27th December, 2017 when asked by the Assessing Officer; nor could these be made available by 29th December, 2017 when the Assessing Officer asked to submit it. In this regard, the learned Senior Counsel for the appellant assessee drew our attention to the submissions made by the assessee before the learned CIT(A) in the course of appellate proceedings in the office of the learned CIT(A), as under, which have been reproduced by the learned CIT(A) at page 7 of the impugned appellate order: "The Appellant could not submit these certificates as these were not available with the Appellant on 2 ' December 2017 when asked by the Ld. Assessing Officer nor could be made available by 29"'December 2017 when the Ld. Assessing Officer asked to submit it. The Appellant's bonafide for not being able to furnish certificates from the lenders M/s Balaji Finance Ltd. & M/s Reliance Capital Ltd. was primarily due to paucity of time coupled with the fact that the Appellant is an individual who is a non resident who predominantly stays abroad and the fact that the records wer....
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....edings in the office of the learned CIT(A); and the issues in dispute in the present appeal regarding allowability of interest expenses amounting to the aforesaid total of Rs.1,41,84,866/- may be restored to the file of the Assessing Officer with the direction to pass fresh order in accordance with law after providing reasonable opportunity to the assessee and after taking the aforesaid additional evidences into consideration. The learned Sr. DR for Revenue expressed no objection to this request; and he was in agreement that direction may be given to admit the aforesaid additional evidences, in the nature of certificates issued by the learned Chartered Accountant u/s 201(1) of the IT Act, filed by the assessee in the course of appellate proceedings in the office of the learned CIT(A) and the issues in dispute in the present appeal regarding allowability of interest expenses amounting to the aforesaid total of Rs.1,41,84,866/- may be restored to the file of the Assessing Officer with the direction to pass fresh order in accordance with law after providing reasonable opportunities to the assessee and after taking the aforesaid additional evidences into consideration. Having regard to....
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....ce relevant to any ground of appeal. In view of the aforesaid explanation submitted by the assessee in the course of appellate proceedings in the office of the learned CIT(A) already referred to in foregoing paragraph (B) of this order; we are satisfied that, the assessee was prevented by sufficient cause from producing the evidences which the assessee was called upon to produce by the Assessing Officer; and also, that the assessee was prevented by sufficient cause from producing before the Assessing Officer the evidences which were relevant to the grounds of appeal. Therefore, having regard to clauses (b) and (c) of Rule 46A(1) of IT Rules; we are of the view that the additional evidences deserved to be admitted by the Ld. CIT(A). (C.1) Even if the assessee did not file a separate application for admission of additional evidences under Rule 46A of Income Tax Rules; it was open to the learned CIT(A) to admit the additional evidences if the same were filed as part of the written submissions during the course of appellate proceedings before her because, there is nothing contained in Rule 46A of Income Tax Rules, 1962 to imply that filing of a separate application for admission of a....