TaxTMI 
TaxTMI 
2026 (4) TMI 1704
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....r 2006-07. 2. This appeal was admitted to hearing vide order dated 26th October, 2018 on the following substantial questions of law: (a) Whether the ITAT was right in law and fact in upholding the order of the Ld. CIT(A), which is passed after submitting fresh evidence/details of the assessee, without allowing the opportunity to examine the same by the Assessing Officer as per Rule 46A of the Income Tax Rule? (b) Whether in the facts and circumstances of the case and in law the ITAT was right in upholding the order of CIT(A), which is given without passing in writing an order under sub-rule (2) of Rule 46A specifying that the assessee was prevented by any reasonable conditions as laid down in Rule 46A(1)(a), (b) or (d) ....
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....he failure of the respondent-Assessee to deduct tax at source on interest payments on term deposits the entire amount of Rs. 7,96,80,000/- was to be added and taken into consideration as per the provisions of Section 40(a)(ia) of the Act. It was noted by the Assessing Authority that the representative of the respondent-Assessee could not furnish details of the interest payments in excess of Rs. 10,000/-. It needs to be noticed that no tax was required to be deducted at source where the payment of interest on the term deposits was not exceeding Rs. 10,000/-. The AO framed the order making additions of Rs. 7,96,80,000/- and raised demand. 7. The order passed by the AO dated 26th December, 2008 was challenged in an appeal by the respondent-....
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....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 the Assessing Officer; or (c) where the appellant was prevented by sufficient cause from producing before the Assessing Officer any evidence which is relevant to any ground of appeal, or (d) where the Assessing Officer has made the order appealed against without giving sufficient 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 84 [Joint Co....
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....ought to have admitted or; (b). Where the appellant was prevented by sufficient cause from producing evidence which he was called upon to produce by the Appellate Authority: (c). Where the appellant was prevented by sufficient cause from producing before the Assessing Authority any evidence which is relevant to any of the grounds of appeal or; (d). Where the Assessing Authority has made the order appealed against without giving sufficient opportunity to the appellant to adduce evidence relevant to any ground of appeal. Such permission to lead additional evidence at the appellate stage can only be granted by the Commissioner by passing a reasoned order in writing. Similarly, the additional evidence permitted to ....
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.... any such order passed by CIT(A) in the final order that was passed on the appeal by the CIT(A). Besides the Revenue has, on affidavit, specifically refuted this aspect recorded by the Tribunal. It is stated by the Revenue very empathically that no such order calling upon the Assessing Authority to prepare remand report on the additional evidence produced by the respondent-Assessee was ever passed by the CIT(A). 14. For the foregoing reasons, we are of the considered opinion that the Tribunal was not right in law and fact in upholding the order of CIT(A) which was primarily passed after admitting the fresh evidence/details produced by respondent-Assessee without allowing opportunity to the Assessing Authority to examine and rebut the sam....