1986 (4) TMI 103

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....According to the ITO no proof was furnished. He, therefore, disallowed the claim. The CIT(A) has, however, allowed the claim. 3. The ld. Departmental Representative has submitted that the CIT(A) has allowed the deduction without any basis. He therefore, urged that his order should be reversed and that of the ITO restored. The ld. Counsel for the assessee has produced before us a copy of the assessment order passed by the Excise and Taxation Officer cum-Assessing Officer, Ward No. 8, Sirhind for the period 13th Sept., 1982 to 31st March, 1983 relevant to the asst. yr. 1983--84 under appeal. As per this order there were interstate trade and commerce sales amounting to Rs. 11,30,146 on which Central Sales tax payable after allowing rebate u....

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....fore, the CIT(A) was not justified in allowing deduction of lease amount of the period beyond 31st March, 1983. It was, therefore, urged that the order of the CIT(A) should be reversed and that of the ITO restored. The ld. Counsel for the assessee on the other hand has referred to cl. 2 of the lease deed according to which the rent shall be paid on or before 31st March. He, therefore, urged that even on mercantile system of accounting the payment had become due before 31st March, and therefore, the same has rightly been allowed by the CIT(A). 7. We have carefully considered the rival submissions. In view of cl. 2 in the lease deed referred to above, we hold that the CIT(A) has rightly allowed the deduction for the whole year. Under the c....

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....artmental Representative supported the above grounds of appeal and stated that there was violation of r. 46A(3) of the IT Rules, 1962 in not allowing the ITO an opportunity before admitting the fresh evidence and also in setting aside his order on this point and restoring the same to his file. The ld. Counsel for the assessee, on the other hand, has supported the order of the CIT(A). 10. Rule 46A of the IT Rules lays down the procedure for production of additional evidence before the AAC and CIT(A), Sub-r. (1) or r. 46A prescribes the circumstances under which the AAC or the CIT(A) can admit additional evidence. Sub-r. (2) provides that the AAC or the CIT(A) shall not admit any evidence unless he records in writing his reasons for its ad....