9911796707
TMI Blog2016 (12) TMI 1793X X X X Extracts X X X X X X X X Extracts X X X X ..... The present appeal has been filed by the assessee assailing the correctness of the order dated 20.01.2016 of the CIT(A), Faridabad pertaining to 2011-12 on the following grounds:- 1. That the Learned Commissioner of Income Tax (Appeals), Faridabad, has erred in law as well as on facts and in circumstances of the case in upholding the addition of ₹ 26,50,000/- on account of cash deposit, by the Assessing Officer without appreciating the fact that wife of the appellant was suffering with cancer and remained hospitalised during the period of assessment proceedings. 2. That the Learned Commissioner of Income Tax (Appeals), Faridabad, has erred in law as well as on facts and in circumstances of the case in upholding addition made by the Assessing Officer without appreciating the fact that against all cash deposits, the appellant prepared Demand Drafts. The Ld Assessing Officer did not take cognizance of the papers filed during the assessment proceedings. 3. That the Learned Commissioner of Income Tax (Appeals), Faridabad, has erred in law as well as on facts and in circumstances of the case in upholding addition made by the Assessing Officer without examining the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee. 4. In appeal before the First Appellate Authority the assessee, represented through a counsel relied upon the written submissions and the evidences filed. Since as per record, no application seeking admission of fresh evidences under Rule 46A was filed, the evidences were considered as not admissible by the CIT(Appeals) and the additions were sustained. 5. In the afore-mentioned peculiar facts and circumstances and considering Ground No.4 raised in the present appeal alongwith the prayer of the Ld.AR, I am of the view that the impugned order cannot be upheld. The record shows that the assessee before the CIT(A) has pleaded his wife s illness as reasons for non-representation before the AO. This fact is evident from the following written submissions extracted by the CIT(A) in his order:- 4. That having regard to the facts and circumstances of the case, Ld.A.O. has erred in law and on facts in passing the impugned assessment order making addition without giving adequate opportunity of being heard because he know very well that wife of assessee is suffering from Cancer. The Assessee wife evaluated with P ET-CT revealed Hypermatabolic left breast mass lesio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h alone has to be the foundation of justice and at all levels the judges have to seriously engage themselves in the journey of discovering the truth. The Apex Court reminded that Judges in India cannot simply sit as mere umpires in a contest between two parties and merely declare at the end of the combat who has won and who has lost. The judge, it has been held, must take an active role in the proceedings in finding the truth while administering justice. The aforesaid observations of the Apex Court with respect to the manner of administering justice is all the more relevant for quasi judicial tax authorities to follow. The tax administration is well aware that in its efforts in seeking to expand their tax net apart from drawing the big tax payers in its net, sizeable numbers of marginal tax payers are also added. These marginal tax payers may not necessarily be having either sound financial or economic understanding and to put it differently may not be tax literate . These marginal tax payers are easily drawn to the available expertise of tax practitioners who may not necessarily be either Advocates or Chartered Accountants and may be only Tax Return Preparers who themselves m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also an equal novice as admittedly being ignorant of the Rules and procedures under which additional evidence could have been produced he failed to exercise due care and attention. To my mind, the tax so collected on the foundation of the ignorances of a tax illiterate tax payer cannot be termed to be a collection of either just nor due taxes collected by the State in accordance with law. I am of the view that the assessee represented by an equally ignorant counsel, should have been appropriately guided by the First Appellate Authority. The fact that the Ld. Commissioner (Appeals) while exercising his discretion refused to admit evidence inspite of sufficient cause being shown as a matter of record is unwarranted and arbitrary. It cannot be ignored that Ld. First Appellate Authority also had a duty to discharge i.e. to ensure that only just and fair taxes due to the state may be collected. While adjudicating and determining the issues, it cannot be countenanced that the Adjudicating Authority is afraid to give appropriate directions. In a case like the present case such a direction could not have been perceived to be not given on account of the fear of being considered a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hus forcing them away from tax compliances and in the arms of unsavoury advisors who thrive and prey on this fear of the population. Such positive steps to my mind will go a long way in ensuring a tax compliant population. 5.4. Accordingly, on a consideration of the facts, circumstances and material available on record, I am of the view that since in the facts of the present case due to his wife s illness the assessee was prevented by sufficient cause from producing the evidences in support of its claim, it would be appropriate and in the interests of justice that in the peculiar facts and circumstances of the case, the impugned order is set aside and the issue is restored back to the CIT(A) with a direction to permit the assessee to produce the evidences in support of its claim. The CIT(A) after confronting the same to the AO and directing the AO to file a Remand Report shall confront the same to the assessee and thereafter pass a speaking order in accordance with law after giving the assessee a reasonable opportunity of being heard. The opportunity so granted, it is hoped is not abused by the assessee and it is made clear that failing which the CIT(A) would be at liberty to ..... 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