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TMI Blog2023 (2) TMI 1238X X X X Extracts X X X X X X X X Extracts X X X X ..... AO. On a careful reading of the impugned order of Commissioner (A) it is very much clear that considering the fact that the assessee did not get a fair opportunity to represent his case before the AO, Commissioner (Appeals) took the responsibility upon himself to inquire into the matter and in the process has called for necessary evidences, not only from the assessee, but from the concerned bank through the assessee. After examining the evidences, Commissioner (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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he genuineness of the source of investments of Rs.9.50 crores based on admissibility of the additional evidence without calling for remand repot from the assessing officers which is in clear violation of Section 295(2) (mm) of the Income Tax Act, 1961 read with Rule 46A of the Income Tax Rules, 1962. 3. As could be seen from the grounds raised, the basic grievance of the Revenue is against admission of additional evidences in violation of Rule 46A of the Income-tax Rules, 1962. 4. Briefly the facts are, the assessee is a non-resident individual. From the information generated in the system of the department the Assessing Officer found that in the year under consideration the assessee had made time deposits with Banks aggregating to R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to add an amount of Rs.16,86,47,782/- as unexplained investment under section 69B of the Act. The assessee contested the aforesaid addition before earned Commissioner (Appeals). 5. Before the first appellate authority, the assessee submitted that due to prevailing restrictions on account of Covid -19, the assessee was unable to participate in the assessment proceeding. Further, the assessee submitted the relevant bank statement and fixed deposit receipts to emphasize that time deposits were made out of NRI savings bank account. Further, the assessee pointed out discrepancy in the amount of fixed deposit as reflected in the system of the department by submitting that the actual fixed deposit amount as on 31.03.12 was Rs.9,50,00,000/- onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing 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 of proceedings in which the order appealed against was passed, notwithstanding that such matter was not raised by the appellant. In fact, sub-section (4) of section 250 of the Act empowers the first appellate authority to make further inquiry as he thinks fit for disposing of the appeal. Even, sub-rule (4) of Rule 46A empowers the first appellate authority to call for and examine evidences and make necessary inquiry. Thus, as could be seen, the statutory provisions empower the first appellate authority to make necessary inquiry and call for evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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