2021 (11) TMI 500

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..... law. In this case the AO has made the addition attributing failure on the part of assessee in producing the same [documents/material/explanation]. On appeal the Ld. CIT(A) did not allow the material/explanation called for by the AO on a hyper technical ground i.e., for non-filing of any petition for admission of additional/relevant evidence. It has been brought to my notice that during the appellate proceedings, the Ld. CIT(A) never raised any queries about reason for not filing the material/documents/explanation called for by the AO. The reason for not filing the material during the assessment proceedings were due to mis-placement of the notice u/s.142(1) of the Act, which led to the non-filing of documents/explanation during assessment .....

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..... which action of the Ld. CIT(A) has been challenged by the assessee before us. 4. Having heard both the parties I find that the AO has taken adverse view against the assessee for absence of requisite details and proper explanations. During the first appellate proceeding, though the assessee wanted to file additional evidence before the Ld. CIT(A) it's request has been turned down, therefore, the assessee is before this Tribunal. The impugned action of the Ld. CIT(A) cannot be countenanced. It is settled that during assessment proceedings the assessee should be given proper opportunity to produce the documents and explanation in respect of the queries raised by the AO. However if the assessee had reasonable cause for not producing the .....

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..... I rely on the decision of the Hon'ble Supreme Court in the case of Tin Box Company vs. CIT reported in (2001) 249 ITR 216 (SC) wherein the Hon'ble Supreme Court has observed that the assessee should be given proper opportunity during the assessment proceedings and failure to do so then the matter should be remitted back to the A.O. The order of the Hon'ble Supreme Court in Tin Box Co. (supra) are as under: 1. It is unnecessary to go into great detail in these matters for there is a statement in the order of the Tribunal, the fact-finding authority, that reads thus: We will straightaway agree with the assessee's submission that the Income-tax Officer had not given to the assessee proper opportunity of being heard. .....

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