TaxTMI 
TaxTMI 
2025 (2) TMI 1319
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....ontravention of Income Tax Rules 46A(1) and 46A(2) and thereby ignoring the facts brought on the record by the AO?" 2. "Whether on the facts and in the circumstance of the case Id. CIT(A) was justified in deleting the additions made by the AO to the tune of Rs. 37,57,883/- u/s 69C of the act by admitting additional evidences in contravention of Income Tax Rules 46A(1) and 46A(2) and thereby ignoring the facts brought on the record by the AO?" 3. "Whether on the facts and in the circumstance of the case Id. CIT(A) was justified in deleting the additions made by the AO to the tune of Rs. 8,15,00,000/- and Rs. 4,25,00,000/- u/s 68 of the Act by admitting additional evidences in contravention of Income Tax Rules 46A(1) and 46A(2) and thereby ignoring the facts brought on the record by the AO?" 4. "Whether on the facts and in the circumstance of the case Id. CIT(A) was justified in admitting additional evidence without giving reasonable opportunity to the AO for counter comments, in contravention to the provisions of rule 46A(3) of the Income Tax Rules?" 5. "Whether on the facts and in the circumstances of the case the Id. CIT(A) was justified in deci....
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.... parties), the CIT(Appeals) finding favour with the claim of the assessee that there were justifiable reasons, due to which, he had failed to fully participate in the assessment proceedings and furnish the requisite details, thus, taking cognizance of the bank account statements, confirmations of the lenders, copies of the returns of income of the lenders which the assessee had failed to file in the course of the assessment proceedings, vacated the addition of Rs. 4.25 crore that was made by the A.O u/s.68 of the Act. 6. Apropos the disallowance of the assessee's claim for deduction u/s.57 of the Act of interest of Rs. 59,42,862/- paid on unsecured loans, the CIT(Appeals) observed that now when the unsecured loans were utilized by the assessee for his business purposes, thus, deduction of interest paid on the said loans was allowable as an expenditure. 7. Apropos the disallowance of the assessee's claim for deduction of interest of Rs. 37,57,883/- on unsecured loans obtained from M/s. CAP Vanijya Pvt. Ltd., the CIT(Appeals) observed that the same was disallowed by the A.O by treating the lender company as paper/shell company. The CIT(Appeals), observing that the assessee had ....
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....to whether or not the CIT(Appeals) is right in law and facts of the case in vacating the disallowances/additions made by the A.O based on fresh documentary evidences that were filed by the assessee before him without confronting the same to the A.O? 13. Before proceeding any further, we deem it fit to cull out Rule 46A of the Income Tax Rules, 1962 which entitles the assessee appellant to produce additional evidence in the course of the proceedings before the CIT(Appeals), as under: "46A. Production of additional evidence before the Deputy Commissioner (Appeals) and Commissioner (Appeals). (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 Officer has refused to admit evidence which ought to have been admitted ; or (b) where the appellant was prevented by sufficient cause from producing the evidence which he was called upon to produce by....
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....llant; or (b) to produce any evidence or document or any witness in rebuttal of the additional evidence produced by the appellant. 15. At this stage, we may herein observe that the aforesaid set of preconditions/ obligation cast upon the CIT(Appeals) while admitting additional evidence is subject to the exception carved out under sub-rule (4), which vests plenary powers with 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 A.O). 16. Be that as it may, we are principally in agreement with the Ld. CITDR that the CIT(Appeals) before admission of the additional documentary evidence that was produced by the assessee in the present case, remained under a statutory obligation to have allowed a reasonable opportunity to the A.O, viz. (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. ....