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TMI Blog2006 (7) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... n record. Apart from all these things sub-rule (4) of rule 46A provide vast powers to the ld. CIT(A). He can exercise his discretion for enter any evidence even though the case of the assessee does not fall within the exceptions provided in clauses ( a ) to ( d ) of sub-rule (1), the moment ld. CIT(A) arrive at a conclusion that the evidence sought to be produced by the assessee is essential for the just decision of the appeal or for the substantial cause of justice, it is necessary to call such material on record. In that situation interdiction provided in sub-rules (1) and (2) would not come in its way. In view of the above we are of the opinion that ld. CIT(A) has wrongly refused to admit the additional evidence produced by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal and if assessee succeed on this ground then the impugned order would be deserves to be set aside for re-adjudication. 3. The brief facts of the case are that the ld. Assessing Officer had made an addition of Rs. 21,98,000 on account of unexplained cash credits available in the books of assessee. Dissatisfied with this addition assessee carried the matter in appeal before ld. CIT(A) and he filed additional evidences under rule 46A of the Income-tax Rules in order to explain the cash credits appeared in his books. The ld. first appellate authority after receiving the additional evidence called for a remand report on such evidence from the Assessing Officer which was received on 24-10-2002. In this remand report it appears that apart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings before the Assessing Officer, except in the following circumstances, namely :-- (a )where the Assessing Officer has refused to admit evidence which ought to have been admitted; or (b)where the appellant was prevented by sufficient cause from producing the evidence which he was called upon to produce by the Assessing Officer; or (c )where the appellant was prevented by sufficient cause from producing before the Assessing Officer any evidence which is relevant to any ground of appeal; or (d)where the Assessing Officer has made the order appealed against without giving sufficient opportunity to the appellant to adduce evidence relevant to any ground of appeal. (2) No evidence shall be admitted under sub-rule (1) unless the De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llate authority i.e. DCIT(A) or CIT(A) would record reasons in writing for admitting such additional evidence, as per the requirement of sub-rule (2). 6. After permitting an assessee to adduce additional evidence next stage would come that Assessing Officer is to be granted an opportunity to examine the evidence or the documents or to examine the witness produced by the appellant. The Assessing Officer would further be at liberty to produce any other evidence in rebuttal of the additional evidence produced by the assessee. Thus on reading of all these three sub-rules it is implicitly clear that first stage is the assessee sought permission for the admission of additional evidence, the next stage would come that such permission would be gra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interdiction provided in sub-rules (1) and (2) would not come in its way. In view of the above we are of the opinion that ld. CIT(A) has wrongly refused to admit the additional evidence produced by the assessee and his order deserves to be set aside. 7. Since we are of the view that the order of the ld. CIT(A) deserves to be set aside then the next issue arises where to restore this issue for verification and re-adjudication, whether at the file of ld. CIT(A) or the Assessing Officer. Ordinarily when the order of the first appellate authority is set aside then issue is to be restored to his file for re-adjudication. But in the present case it is the Assessing Officer who has to examine the additional evidence produced by the assessee in su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssions of the assessee filed before the ld. CIT(A), which is available at page-73 of the paper book. From the record it is nowhere discernible that these expenses were incurred by the assessee on his travelling to Delhi. Simply accounting entries are available in the books, therefore, in our opinion ld. Assessing Officer has rightly made the disallowance. This ground of appeal is rejected. 11. The next ground relates to disallowance of Rs. 2,197 out of car loan interest payment. 12. The assessee had paid a sum of Rs. 17,500 towards interest on the car loan. The ld. Assessing Officer has disallowed 1/6th of such interest payment on the ground that possibility of the car being used for personal purposes cannot be ruled out. We do not find a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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