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TMI Blog2023 (12) TMI 1187X X X X Extracts X X X X X X X X Extracts X X X X ..... Act which was co-equal to that of the AO. It also took note of the fact that notice was issued to the concerned branch of Canara Bank under Section 133(6) of the Act and it was only after information was received from Canara Bank and material evidence furnished by assessee, that the addition was deleted HELD THAT:- According to us, the Tribunal has reached the correct conclusion. Appellant cannot but accept that the CIT(A) has co-equal powers as that of the AO. The enquiry carried out by the CIT(A) revealed a grave factual error committed by the AO, in noting the figure with regard to the time deposits. In our opinion, since the CIT(A) has returned a finding of fact with regard to the source of funds that were found deposited in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel, who appears on behalf of the appellant/revenue, is whether the Commissioner of Income Tax (Appeals) [in short, CIT(A) ] was right in admitting additional evidence, without following the procedure laid down in Rule 46A(3) of the Income Tax Rules, 1962 [in short, Rules ]. 7. The record shows that the Assessing officer (AO), for the period under consideration, had issued notice under Section 148 read with Section 147 of the Income Tax Act, 1961 [in short, Act ], having received information with regard to the time deposits made by the respondent/assessee with Canara Bank. The AO incorrectly obtained information that the time deposits made by the respondent/assessee amounted to Rs. 19,72,95,564/-. It appears that the AO issued no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings being carried out by the AO only when he was issued a show-cause notice dated 11.12.2019 via e-mail. It was the respondent s/assessee s stand that he had replied to the said show cause notice via e-mail dated 12.12.2019, whereby, an explanation was given with regard to the source of time deposits made with Canara Bank. 13. The fact that because of Covid-19 the respondent/assessee could not travel to India from the USA was also put forth by him as a reason for not participating in the proceedings before the AO. 13.1 It was averred that the respondent/assessee was 71 years old and, therefore, a lenient view ought to be taken in the matter. 14. As noted above, the CIT(A) exercised his powers under Section 250(4) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,50,00,000/- Appellant has mentioned that the source of entire funds used in time deposits were the remittances from his overseas bank account out of his earnings overseas. All the credits appearing in the bank account in foreign currency have been submitted in form of Bank statement. The appellant was involved in packaging industry, a retail business in USA. Due to the advanced age he has been living a retired life with his family in USA since January 2014 therefore he has sent remittances from USA which has been earned out of his sheer hard work and business abroad and he has made due declarations in this regard at the time of these remittances. The source of the money invested in time deposits with Canara bank has been duly reflected in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , that the addition was deleted. The relevant observations made in this behalf by the Tribunal being apposite are set forth hereafter: 7. We have considered rival submissions and perused the materials on record. The basic grievance of the Revenue is, learned Commissioner (Appeals) should not have deleted the addition based on additional evidences furnished by the assessee without forwarding them to the Assessing Office for his examination and opinion. It is fairly well settled, powers of the first appellate authority is co-terminus with the Assessing Officer. On a reading of section 250 and 251 of the Act, it is very much clear that learned Commissioner (Appeals) while deciding an appeal can consider and decide any matter arising out o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner (Appeals) has factually found that the actual quantum of time deposits in Canara Bank was to the tune of Rs. 9,50,00,000/-. He has further found that even Rs. 9,50,00,000/- deposited in Canara Bank was out of overseas remittances from the income earned by the assessee as a resident in USA for past so many years. No contrary material has been brought on record by the Revenue to disturb the aforesaid factual findings of learned Commissioner (Appeals). Therefore, if, upon examining the material on record learned Commissioner (Appeals) has recorded a factual finding, without pointing out any deficiency or discrepancy in such finding, the decision of learned Commissioner (Appeals) cannot be reversed merely on the allegation of violation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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