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TMI Blog2023 (3) TMI 1239X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee s case, the ld. CIT(A) has not referred the matter back to the ld. Assessing Officer for his comments and has not sought remand report from the ld. AO before adjudicating the appeal in favour of the assessee. We observe that the due process as prescribed under Rule 46A of the Income Tax Rules has not been followed in the instant facts. Thus looking into the facts of the case, in the interest of justice, the matter is being restored to the file of ld. Assessing Officer for examining the case of the assessee afresh after examining the claim of the assessee in the light of the supporting documents to the effect as to which year the investments have been liquidated by the assessee i.e. whether or not the same sere liquidated by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. That the revenue craves leave to alter, add, modify, delete any or all grounds of appeal. 3. The brief facts of the case are that the assessee had sold property in assessment year 2014-15 and had claimed deduction u/s. 54(1) of the Act amounting to Rs. 4.5 crores by investing the same in capital gains account scheme. The Assessing Officer initiated proceedings u/s. 147 of the Act, but the assessee did not respond to the aforesaid notices since as per the assessee, he was under the impression that there was nothing unusual in this assessment year and no amount was withdrawn from the capital gains account deposit scheme and therefore the assessee did not reply to the notices issued by the Assessing Officer. In absence of any resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceeding assessment year i.e. 2016-17 and a sum of Rs. 4.5 crores was offered to tax in assessment year 2016-17 by the assessee. The ld. CIT(A) accepted the submission of the assessee and deleted the addition of Rs. 4.5 crores with the following observations:- DECISION 4. The submission is considered. The appellant has claimed deduction under Section 54 of the Act for Rs.4,50,00,000 out of income from capital gain in A.Y. 2014-15 and same was allowed by the AO while passing the assessment order under Section 143(3) of the Act as well as 143(3) r.w.s. 147 of the Act. As per provisions of Section 54 of the Act the appellant is required to utilize amount deposited in capital gain savings account within prescribed period by purchasin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the fact that appellant has not made any withdrawal of funds in the current year as well as amount withdrawn is already offered to tax in A.Y. 2016- 17, the addition made by AO for Rs.4,50,00,000 cannot be sustained. This ground of appeal is allowed. 5. The Department is in appeal before the ld. CIT(A) against the aforesaid order passed by ld. CIT(A). The primary contention of the Department is that the ld. CIT(A) has erred in admitting fresh evidence in contravention to Rule 46A of the Income Tax Rules without remanding the case back to the Assessing Officer for examining fresh evidence which is in the form bank statement of the assessee for financial year 2015-16, which was never examined by the Assessing Officer during the cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same were liquidated/withdrawn by the assessee in the succeeding assessment year i.e. assessment year 2016-17. However, evidently, before admitting such additional evidence in support of the assessee s case, the ld. CIT(A) has not referred the matter back to the ld. Assessing Officer for his comments and has not sought remand report from the ld. Assessing Officer before adjudicating the appeal in favour of the assessee. We observe that the due process as prescribed under Rule 46A of the Income Tax Rules has not been followed in the instant facts. Therefore, looking into the facts of the case, in the interest of justice, the matter is being restored to the file of ld. Assessing Officer for examining the case of the assessee afresh after ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and consequent reassessment passed by AO deserves to be quashed. 2. The appellant craves leave to add, alter or amend and/or withdraw any ground or grounds of appeal either before or during the course of hearing of the appeal. Total tax effect (see note below) Rs.1 ,03,14,167 10. Before us, the ld. counsel for the assessee submitted that he shall not be pressing the cross objections before us. Accordingly, in the light of above submission made by the ld. counsel for the assessee, the cross objections of the assessee are being dismissed as not presse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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