TaxTMI 
TaxTMI 
2025 (6) TMI 408
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....es of the case whether the Ld. CIT(A) is correct in admitting the additional evidences in contravention of Rule 461 of the Rules without appreciating the fact that the assessee had failed to show that it had sufficient reasons for non-compliance during assessment stage which is a pre-condition for accepting additional evidence under Rule 46A of the Rules". 3. On facts and circumstances of the case whether the Ld. CIT(A) is correct in accepting and considering the documentary evidences for adjudication without affording an opportunity to the AO for examining the sane". 2. On the other hand, the assessee has challenged the impugned order on the following grounds of appeal. "1. The Learned CIT (A) has erred in Law's and on facts and circumstances of the case in Estimating the Total Income of Rs. 37,45,219/- @ 8% on gross receipts of Rs. 4,68,15,238/- 2. The Learned CIT(A) has gross erred in Law and on facts without considering the books of accounts submitted by the Appellant during the CIT(A) proceedings." 3. Succinctly stated, the A.O. based on information that though the assessee had made cash deposits of Rs. 6,13,65,625/- in his bank account but....
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....ccordingly, the CIT(A) based on his aforesaid deliberations worked out the business profits of the assessee at Rs. 37,45,219/- i.e. @8% of his gross receipts of Rs. 4.68 crores(supra) as against that disclosed by the assessee based on his profit & loss account at Rs. 13,91,451/-. Also, the CIT(A) directed the A.O. to give a credit of the amount of TCS/TDS of Rs. 4,08,648/- (Rs.4,05,711/- + Rs. 2,937/-) while giving effect to his order. For the sake of clarity, the observations of the CIT(A) are culled out as under: "5. I have gone through the facts of the case and material available on record. It is seen from the records and submission made by the appellant from time to time that the AO has passed an order u/s, 147 read with section 144 of the Act on 14.02.2022 where in total income of the appellant has determined at Rs. 6,13,65,630/- u/s. 69A of the Act on account of unexplained cash deposit in the appellant's bank account. 5.1. As regards to grounds of appeal all grounds are interconnected and hence, discussed together. On perusal of the reply filed dated 19.01.2024 before the CIT(A), NFAC, Delhi the appellant has admitted that the main reason for not filing....
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....ring the appellate proceedings the appellant has filed copy of P & L account & Balance sheet also as per which total turnover of the appellant during the year was Rs. 4.68,15,238/- and net profit derived out of that was Rs. 13,91,451/-. However, the various expenses claimed is not verifiable for the reason that neither the appellant has filed any return u/s. 139 or in response to notice u/s. 148 of the Act. Also, he has not got his books audited despite of having turnover of more than the prescribed limit as per Income Tax Act. Therefore, only option available is to estimate the income of the appellant considering the facts of the case. 5.5. As per appellant's own submission total turnover of the appellant during the year was Rs. 4,68,15,238/-. It would be just & proper to determine profit and gains of appellant's business on presumption basis is applying the provisions of sec. 44AD as per which 8% of the total turnover or gross receipts of the appellant can be estimated as the profit and gains of such business chargeable to tax under the head business or profession. Accordingly, the profit & gains of appellant is estimated at Rs. 37,45,219/-being....
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....ng the appeal. We thus, in terms of our aforesaid observations, condone the delay of 54 days involved in filing of the present appeal by the assessee before us. 9. Apropos the grievance of the department, we find that the same lies in a narrow compass, viz. the admission of certain additional documentary evidence by the CIT(A) at the back of the AO, i.e without confronting the same to the A.O. as required by the mandate of Rule 46A of the Income-Tax Rules, 1962. 10. We find on a perusal of the record that the assessee had failed to comply with the notice(s) issued by the A.O u/s 142(1) of the Act, and had not furnished the documentary evidence which were specifically called for by him to verify the source of the cash deposits of Rs. 6.13 crores (supra) made during the subject year in the assessee's bank account, viz. Trading and Profit and Loss account, Balance Sheet, computation of income, bank statements etc. As is discernible from the record, the assessee had stated before the CIT(A) that the actual cash deposits in his bank account during the subject year amounted to Rs. 4,17,83,922/- only and not Rs. 6,13,65,625/-, which was verifiable on a perusal of the bank account st....
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....fficient opportunity to the appellant to adduce evidence relevant to any ground of appeal. (2) No evidence shall be admitted under sub-rule (1) unless the Joint Commissioner) (Appeals)] [or, as the case may be, the Commissioner (Appeals)) records in writing the reasons for its admission. 3) The Joint Commissioner) (Appeals)][or, as the case may be, the Commissioner (Appeals)] shall not take into account any evidence produced under sub-rule (1) unless the Assessing Officer) has been allowed a reasonable opportunity- (a) to examine the evidence or document or to cross-examine the witness produced by the appellant, or (b) to produce any evidence or document or any witness in rebuttal of the additional evidence produced by the appellant. 4) Nothing contained in this rule shall affect the power of the Joint Commissioner) (Appeals)] [or, as the case may be, the Commissioner (Appeals)] to direct the production of any document, or the examination 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 Off....