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Issues involved: Appeal against order passed by CIT(A) - Application for adjournment - Grounds of appeal - Disallowance of expenses - Admission of additional evidence under Rule 46A.
Application for adjournment: The assessee filed an appeal against the order passed by the CIT(A) but requested an adjournment citing the need to procure certain information. The Tribunal noted that the assessee had two months to prepare the case and did not provide a basis for the additional information. The adjournment application was dismissed, and the matter was heard ex-parte. Ground No.1 - Curfew situation: The assessee contended that the order was announced during a curfew, preventing her appearance, but this ground was not raised before the CIT(A) or filed as an additional ground before the Tribunal. Consequently, Ground No.1 was dismissed. Ground No.2 - Disallowance of expenses: The CIT(A) had initially disallowed 40% of expenses due to lack of proper evidence and non-production of books of account. The assessee argued that necessary information had been provided, and the disallowance was unjustified. The CIT(A) reduced the disallowance to 25% after considering the totality of facts and circumstances. The Tribunal upheld the CIT(A)'s decision, stating that in the absence of evidence, the disallowance was reasonable. Ground No.3 - Admission of additional evidence: The assessee sought to provide stock details during the appeal, invoking Section 46A of the Income-tax Act. However, the CIT(A) did not address this request properly as required by Rule 46A. The Tribunal set aside the CIT(A)'s order and directed a fresh adjudication on the application for additional evidence in accordance with the law. The appeal filed by the assessee was partly allowed, with the Tribunal providing directions for the disposal of the issues under appeal and the admission of additional evidence.
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