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TMI Blog2017 (5) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... ilure was paucity of time with the AO. He concluded the assessment proceedings within 20 days after seriously taking cognizance of the issues considered in the assessment order. To our mind conditions enumerated at sub-clause (a) to (d) of Rule 46A are available in the present case. Apart from that an irregularity has crept in the proceedings before the ld.CIT(A) vide which the ld.CIT(A) failed to take cognizance of the application moved for permission to lead additional evidence - this irregularity is required to be removed and proceeding is to be instituted at the stage where this irregularity has happened. Matter remanded back to CIT(A) - Decided partly in favor of assessee. - ITA No.2431/Ahd/2016 - - - Dated:- 1-5-2017 - SHRI RAJP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 68 of the Act. 5. The appellant craves leave to add, alter, amend, and/or withdraw any grounds of appeal, either at the course of hearing of appeal or before such hearing. 3. The ld.counsel for the assessee at the very outset challenged action of the CIT(A) for not taking any cognizance of the application moved by the assessee under Rule 46A of the income Tax Rules, 1962. In other words, he pressed ground no.2 first. 4. Before adverting to this ground, we would like to make reference to the facts in brief. The assessee has filed his return of income on 4.9.2012 declaring total income at ₹ 9,66,860/-. The return of the assessee was selected for scrutiny assessment and notice under section 143(2) of the Act dated 23. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d no.3 before us. It is pertinent to mention that the assessee has claimed this interest expenditure for the reason that he has made investment in the shares of Godhani Gems Pvt. Ltd. According to the assessee he has not made investment for earning exempt income, rather, he has made investment for the purpose of business. The ld.AO did not consider single aspect with regard to this issue. Reply of the assessee in response to the show cause notice has been running into six pages and the AO has just recorded finding in three lines. He observed that interest expenditure cannot be claimed against salary income which is being drawn by the assessee as director in Godhani Gems Pvt. Ltd. In other words, the AO has not touched any of the explanation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en served to the creditors. He has also not directed the assessee to produce their income tax returns. In this situation, the assessee has filed an application under Rule 46A of the Income Tax Rules before the ld.CIT(A) for permission to adduce additional evidence. By way of this application, the assessee sought to produce copy of confirmation from whom the assessee has taken unsecured loans along with acknowledge receipts and return of income and bank statements. This application is available on page no.34 of the paper book. The ld.CIT(A) failed to take cognizance of this application. It has neither been rejected nor allowed. Thus, the order of ld.CIT(A) is not sustainable. He prayed that the issue be set aside to the file of the CIT(A) fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing 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 [Deputy Commissioner (Appeals)] [or, as the case may be, the Commissioner (Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ime with the AO. He concluded the assessment proceedings within 20 days after seriously taking cognizance of the issues considered in the assessment order. To our mind conditions enumerated at sub-clause (a) to (d) of Rule 46A are available in the present case. Apart from that an irregularity has crept in the proceedings before the ld.CIT(A) vide which the ld.CIT(A) failed to take cognizance of the application moved for permission to lead additional evidence. Considering this aspect, we are of the view that this irregularity is required to be removed and proceeding is to be instituted at the stage where this irregularity has happened. Therefore, we set aside the order of the ld.CIT(A and direct the ld.CIT(A) to admit additional evidence sou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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