TaxTMI 
TaxTMI 
2009 (10) TMI 1007
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....ting the additions amounting to Rs. 68,37,054/- made as per order under section 144 of the I T Act, 1961. 2) On the facts and in the circumstances of the case and in law the Learned Commissioner of Income Tax(Appeals) has erred in admitting fresh evidences, that too without giving the Learned Assessing Officer an opportunity to cross-verify them, thereby violating the provisions of Rule 46A of the I T Rules, 1962. 3) It is therefore prayed that the order of the Learned Commissioner of Income Tax(Appeals) be set-aside and that of the Learned Assessing Officer be restored." 2. The facts of the case are that the Learned Assessing Officer issued notice under section 143(2) of the Act dated 11-06-2007 which was duly ser....
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....assessee has made investments of Rs. 32,13,000/- with Suzlon Energy Ltd. and Rs. 5,79,600/- with Bank of Baroda. The Learned Assessing Officer considered the same as out of unaccounted income and added Rs. 37,92,600/- to the income of the assessee. In this way the assessment of the assessee was made at an income of Rs. 73,71,270/- in place of the returned income of Rs. 4,65,928/-. 3. In appeal, the Learned Commissioner of Income Tax(Appeals) deleted the additions of Rs. 68,37,054/- made by the Learned Assessing Officer by admitting additional evidences such as details in respect of the transactions of Rs7,00,000/- and Rs5,85,127/- for which additions were made under section 68 of the Act by the Learned Asses....
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....ed Assessing Officer and therefore the details and evidences required by him in framing the assessment could not be filed before him. 7. We have heard the rival submissions and perused the orders of the lower authorities and the materials available on record. We find that it is not in dispute that the assessee failed to comply with the notices of hearing sissued under section 143(2) and 142(1) of the Income Tax Act, 1961. Thus, the details and documents required by the Learned Assessing Officer for completing assessment were not furnished before him. This led to the framing of assessment to the best of his judgment by the Learned Assessing Officer which resulted in a high pitched assessment of total income of the assessee. That the Learn....
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....t held that before admitting the additional evidence, the Learned Commissioner of Income Tax(Appeals) has to give opportunity to the Learned Assessing Officer to consider or cross examine or rebut the additional supporting evidences furnished by the assessee. If the Learned Commissioner of Income Tax(Appeals) fails to exercise his discretion judicially, and circumstances so demand, his action would be open for correction by a higher authority. The purpose of Rule 46A of the Rules is to ensure that evidence is primarily led before the Income Tax Officer. Admittedly the exceptions provided in Rule 46A to file additional evidence before the Learned Commissioner of Income Tax(Appeals) did not exists in the case of the assessee. It is also not i....