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TMI Blog2019 (8) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... d the CIT(A) has rejected the additional evidence under Rule 46A of the IT Rules. We are of the opinion that the assessee shall not gain any benefit by delaying the litigation and support our view on the principle of natural justice, and admit the additional evidence filed by the assessee. In respect to addition made in due to unreasonable salary paid to the assessee's wife u/s 40A(2)(b), we are of the opinion that in the penalty proceedings, the assessing authority shall deal the issues independently and any addition in the quantum proceedings cannot be a gateway for levying the penalty. Therefore considering the overall facts and circumstances of the case, we restore the disputed issues to the file of CIT (A) to adjudicate afres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , found that the assessee could not furnish the confirmation in regard to sundry creditor of ₹ 1,62,654 from Sukhjika Industries, Hyderabad. Hence applied the provisions of Section 68 of the Act and made addition ₹ 1,62,654. The Assessing Officer found that the assessee has paid salary to the wife and there are no proofs were filed with request to contribution to the Business of the assessee. Hence the Assessing Officer is of the opinion that the salary paid to the assessee's wife ₹ 2 lacs is not allowed under Section 40A(2)(b) of the Act and assessed total income of ₹ 23.04,150 under Section 143(3) of the Act Dt.14.10.2016. Subsequently, the Assessing Officer initiated penalty proceedings and issued notice. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has relied on the judicial decisions and submitted Paper Book and filed written submissions. The contention of the learned Authorised Representative that the assessee is not to appeal against the assessment order under Section 143(3) of the Act with bona fide belief and to obtain peace from the Income Tax Department whereas the Assessing Officer has levied penalty without considering the facts and the judicial decisions relied on by the assessee. The ld. AR further emphasized that the assessee produced additional evidence before the learned CIT(Appeals) being confirmation of the creditor which could not be filed in the course of assessment proceedings. However the learned CIT(Appeals) has rejected the additional evidence submitted by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit by delaying the litigation and support our view on the principle of natural justice, and admit the additional evidence filed by the assessee. On the second disputed issue with respect to the addition made by Assessing Officer in due to unreasonable salary paid to the assessee's wife under Section 40A(2)(b) of the Act, we are of the opinion that in the penalty proceedings, the assessing authority shall deal the issues independently and any addition in the quantum proceedings cannot be a gateway for levying the penalty. Therefore considering the overall facts and circumstances of the case, we restore the disputed issues to the file of CIT (Appeals) to adjudicate afresh considering the additional evidence filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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