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| The Tax Publishers2020 TaxPub(DT) 3922 (Bang-Trib) INCOME TAX ACT, 1961
Section 144 Section 29
Where assessee had filed an application under rule 29 of ITAT Rules for admission of additional evidence which were not produced before AO or CIT(A) and such evidence plays a vital role in decision making and AO had made best judgment assessment under section 144 read with section 147 as assessee had failed to furnish the details for various reasons, further Department objected for admission of evidences as AO was denied the opportunity of examining the evidences, therefore, additional evidences were admitted and matter was remanded back to AO to verify and examine the claim of the assessee.
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Assessment - Best judgment assessment - Admission of additional evidence - AO was denied opportunity of examining the evidences
Assessee was engaged in business of acquisition of land, conversion, formation of approved layout and sale of lands and made cash deposits in the bank account. AO initiated reassessment proceedings under section 147. Since there was no response to notice under section 148, AO had issued summons under section 131 to the director of the assessee Company and statement was recorded. Subsequently, showcase notice was issued to assessee company to explain cash deposits on various dates. Assessee company appeared and furnished the copy of computation of income, audited financial statements and bank statement and sought time for submitting the return of income and reply to show cause notice. However AO found that no return of Income was filed by assessee or reply was furnished. AO observed that in spite of providing several opportunities to assessee, no explanations were furnished and hence made an addition of deposits as unexplained cash credits under section 68 and passed order under section 144 read with section 147. Held: Assessee had filed an application under rule 29 of ITAT Rules for admission of additional evidence which were not produced before AO or CIT(A) and such evidences plays a vital role in decision making and goes to roots of the case and prayed for opportunity of hearing. AO had made best judgment assessment under section 144 read with section 147 as assessee had failed to furnish the details for various reasons. Department objected for admission of evidences as AO was denied the opportunity of examining the evidences. AO should be provided an opportunity to verify and examine the evidences filed in course of hearing. Accordingly, additional evidences were admitted and matter was remanded back to AO to verify and examine the claim of the assessee.
REFERRED :
FAVOUR : Matter remanded
A.Y. : 2011-12
IN THE ITAT, BANGALORE BENCH
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