2012 (4) TMI 830 - AT - Income Tax

Summary

Issues involved: Challenge to order of Ld. CIT(A) regarding additions and disallowances; Acceptance of additional evidence under Rule 46A of Income Tax Rules 1962.

Acceptance of additional evidence: The appellant challenged the Ld. CIT(A)'s decision not to accept additional evidence under Rule 46A. An application under Rule 29 of ITAT Rules 1963 was filed for admission of additional evidence, including details such as old balances written off, explanation for low G.P. rate, central sales tax challan, and confirmed statement of accounts of unexplained creditors. The Ld. Counsel argued for admission of this evidence, highlighting the genuineness of a certificate issued by Dr. V.K. Goel regarding the illness of Shri Keshav Aggarwal. The Ld. CIT(A) had obtained a remand report from the AO on the additional evidence but did not take it on record, deciding the appeal based on the AO's evidence. The Tribunal found that the evidence should have been admitted, as the fact of illness was not disputed, and remanded the matter to the AO for fresh assessment considering the additional evidence.

Decision: The Tribunal allowed the appeal for statistical purposes, admitting the additional evidence that was initially not accepted by the Ld. CIT(A). The case was remanded to the AO for a fresh assessment taking into account the additional evidence submitted by the appellant.