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| The Tax Publishers2020 TaxPub(DT) 0932 (Del-Trib) INCOME TAX ACT, 1961
Section 250
Where addition made by AO on account of disallowance of loss on rate settlement (Contracts) was deleted by CIT(A) by accepting additional evidence without calling remand report from the AO, which was in contravention of rule 46A, thus, the issue was restored to file of the AO to verify necessary evidences and decide the issue afresh.
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Appeal [CIT(A)] - Additional evidence - Admissibility - Non-calling of remand report from AO
AO made disallowance of loss on rate settlement (Contracts), but the same was deleted by CIT(A). Revenue challenged the order on the ground that the CIT(A) was not justified in deleting the addition made by the AO by accepting additional evidence without giving opportunity to the AO, which was in contravention of provisions of rule 46A. Held:The issue was identical to that of assessment year 2010-11 ([ITA No.2876/DEL/2016, dt. 20-3-2019]). In the present assessment year as well, the additional evidence was before the CIT(A) and no remand report was called for by the CIT(A). The CIT(A) had not followed rule 46A and had not called for remand report from the AO to prove the revenue's case. Therefore, it would be appropriate to restore this issue to the file of the AO and the assessee was directed to furnish all necessary evidences before the AO, which the AO would verify and then decide the issue afresh.
REFERRED : ITO v. D.R. Exports International [ITA No.2876/DEL/2016, dt. 20-3-2019].
FAVOUR : Matter remanded.
A.Y. : 2011-12
INCOME TAX ACT, 1961
Section 40(a)(i) Section 195
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