2023 (1) TMI 889

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.... Act, 1961 (hereinafter the 'Act'), vide order dated 27.12.2016. 2. The only issue raised by Revenue in this appeal is as regards to violation of Rule 46A of the Income Tax Rules, 1962 by the CIT(A) by admitting fresh evidences submitted by assessee for the first time in regard to first issue of claim of deduction u/s.35D of the Act in regard to pre-operative charges and second issue of addition of unsecured loans. For this, Revenue has raised the following grounds:- "2.1 The Ld.CIT(A) erred in giving relief to the assessee by deleting the addition under section 35D of the Income Tax Act, 1961 based on fresh evidence submitted for the first time before the CIT(A) without giving opportunity to the AO under Rule 46A of the Income tax Rules....

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....t of the business. Therefore, the AO disallowed the claim of assessee. On appeal, the CIT(A) admitted fresh evidences without confronting the AO. For this, the ld.Senior DR pointed out the fact recorded by CIT(A) that "The dominant expenses comprised cost of Raw materials and components, Employee Benefit Expenses, Finance Costs and other expenses. The appellant furnished Purchase Accounts in which particulars of the supplies of hard wares, electrical, wires and cables were listed. Some salary accounts and ledger accounts for expenses such as EB charge and consulting Fees were submitted. Taking into account the details furnished by the appellant, I am inclined to conclude that there is considerable merit in the contentions of the appellant r....