ITO ward-2(5), Noida V. VaibhavMishra, Lucknow

ITA 4246/DEL/2019

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income Tax (Appeals)-I, Noida, which arose from an assessment order passed by the Assessing Officer under Section 144 of the Income Tax Act, 1961 for the Assessment Year 2013-14. The Revenue contended that the CIT(A) erred in law and on facts by admitting additional evidences furnished by the assessee under Rule 46A of the Income Tax Rules, 1962 without proper confrontation to the Assessing Officer, which allegedly resulted in serious prejudice to the interest of the Revenue. The Tribunal found merit in the Revenue's contention and noted that the additional evidence was not properly confronted to the Assessing Officer as required under Rule 46A(3) of the IT Rules, leading to the decision to remit the matter back to the CIT(A) for a fresh examination.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 121627 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2022
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 20-11-2022
• Assessment Year: 2013-2014
• Appeal Filed On: 08-06-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B.S. ANAND
• Assessee Lawyers: ALOK KHARE
• Section: 54

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.4246/DEL/2019 Assessment Year 2013-14 ITO, Ward-2(5), Noida. Vs. Shri Vaibhav Mishra, 4/49, Vishal Kahand, Gomit Nagar, Lucknow. TAN/PAN: BLDPM3364C (Appellant) (Respondent) Appellant by: Shri B.S. Anand, Sr.D.R. Respondent by: Shri Alok Khare, CA Date of hearing: 21 11 2022 Date of pronouncement: 21 11 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed by the Revenue against the order of the Commissioner of Income Tax (Appeals)-I, Noida [‘CIT( A) ’ in short] dated 29.11.2018 arising from the assessment order dated 18.03.2016 passed by the Assessing Officer ( AO) under Section 144 of the Inco me Tax Act , 1961 (the Act) concerning AY 2013- 14. 2. Th e g ro u nd s o f ap p eal ra ised b y th e Rev en u e read as u n d er: 1 . T h a t t h e L d . C I T ( A ) h a s e r r e d i n l a w a n d o n f a ct s b y a d m i t t i n g a d d i t i o n a l e v i d e n c e s f u r n i s h e d b y t h e a s se s s e e u n d e r t h e R u l e 4 6 A o f t h e I n c o m e T a x R u l e s , 1 9 6 2 , i g n o r i n g t he p r o v i s i o n s c o n t a i n e d u n d e r c l a u s e ( a ) a n d c l a u s e ( b ) o f s u b r u l e( 1 ) o f R u l e 4 6 A o f t h e I n c o m e T a x R u l e s , 1 9 6 2 . 2 . T h a t t h e L d . C I T ( A ) h a s e r r e d i n l a w a n d o n f ac t s b y d e l e t i n g a d d i t i o n o f R s . 1 , 9 3 , 1 1 , 0 0 0 / - , m a d e o n a c co u n t o f I.T.A. No.4246/Del/2019 2 u n e x p l a i n e d i n v e s t m e n t i n i m m o v a b l e p r o p e r t y , b y a dm i t t i n g a d d i t i o n a l e v i d e n c e s f u r n i s h e d b y t h e a s s e s s e e u n d er t h e R u l e 4 6 A o f t h e I n c o m e T a x R u l e s , 1 9 6 2 , i g n o r i n g t h e p r o v i s io n s c o n t a i n e d s u b r u l e ( 3 ) o f R u l e 4 6 A o f t h e I n c o m e T a x R u l e s , 19 6 2 b y n o t a l l o w i n g t h e A . O . t o e x a m i n e t h e e v i d e n c e o r d o c u m en t o r t o c r o s s e x a m i n e t h e w i t n e s s p r o d u c e d b y t h e a p p e l l a n t o r t o p r o d u c e a n y e v i d e n c e s o r d o c u m e n t s o r a n y w i t n e s s i n r e b u t t a l of t h e e v i d e n c e p r o d u c e d b y t h e a p p e l l a n t . 3 . T h a t t h e L d . C I T ( A ) h a s e r r e d i n l a w a n d o n f ac t s b y a l l o w i n g d e d u c t i o n u / s 5 4 o f I . T . A c t , 1 9 6 1 w h i c h wa s n o t c l a i m e d b y t h e a s s e s s e e i n h i s r e t u r n o f i n c o m e . 4 . T h a t t h e a p p e l l a n t c r a v e s t o l e a v e , a d d a l t e r a n d a m e n d a n y o f t h e g r o u n d s o f a p p e a l o n o r b e f o r e h e a r i n g . 5 . T h a t t h e o r d e r o f L d . C I T ( A ) d e s e r v e s t o b e se t a s i d e a n d t h e o r d e r o f t h e A O b e r e s t o r e d . 3. When the matter was called for hearing, none appeared for the assessee. The matter was accordingly proceeded e x-parte. 4. Ld. DR for the R evenue pointed out that the CIT(A) has ad mitted the additional evidences filed by the assessee under Rule 46A of the Inco me Tax Rules without confronting the additional evidences to the Assessing Officer in gross infringement and letter and spirit of Section 46A which has resulted in serious prejudice in the i nterest of the Revenue. 4. On perusal of the first appellate order, it is noticed that the CIT( A) has taken the copy of sale deed evidencing purchase of property on record and has granted benefit of exemption under Section 54 of the Act. Ho wever, the copy of aforesaid sale deed was never provided to the Assessing Officer. Ther efore, the relief was grante d to the assessee b y the CI T( A) without meeting the require ment of law. I.T.A. No.4246/Del/2019 3 5. We find me rit in the contention of the Revenue. The additional evidence taken on record by the CIT(A) was necessarily r equired to be confronted to the Assessing Officer in ter ms of the Rule 46A(3) of the IT Rules. Hence , the action of the CIT( A) granti ng relief to the assessee without the co mment of the Assessing Officer on the new evidence cannot be countenanced in law. Thus, we set aside the order of the CIT(A) and re mit the ma tter back to the file of the CIT(A) for fresh adjudication of the dispute in accordance with law a f ter giving opportunity to the Assessing Officer as well as the ass essee. 6. In the result, the appeal of the Revenue is allowed for statistical purposes. Order was pronounced in the open Court on 21/11/2022. Sd/- Sd/- [CHALLA NAGENDRA PRASAD] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /11/2022 Prabhat