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TMI Blog2024 (1) TMI 1196X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by sufficient cause from producing the evidence which he was called upon to produce by the Assessing Officer. In view of the above provisions of Rule 46A of the Rules, the assessee being an illiterate person could not appear before the Assessing Officer and the appellate proceedings being the continuation of the assessment proceedings, the CIT(A) has rightly permitted the assessee to produce the additional evidence in consonance with the Rule 46A of the Rules. Decided against revenue. - HONOURABLE MR. JUSTICE BHARGAV D. KARIA AND HONOURABLE MR. JUSTICE NIRAL R. MEHTA Appearance: For the Appellant(s) No. 1 : Mr. Varun K. Patel(3802) For the Opponent(s) No. 1 ORAL ORDER (PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA) 1. Heard learned senior standing counsel Mr. Varun K. Patel with learned advocate Mr. Dev Patel for the petitioner. 2. By this Tax Appeal under Section 260A of the Income Tax Act, 1961 (for short the Act ), the appellant-Revenue has proposed the following substantial questions of law arising out of the order dated 26.07.2023 passed by the Income Tax Appellate Tribunal, Ahmedabad- B Bench (for short the Tribunal ) in ITA No. 1640/Ahd/2019 for A.Y. 2014-15. a) Whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the balance sheet and contended that the Assessing Officer ignored the increase in sales, closing stock but only picked up the creditors amount and made addition as bogus creditors without any justification. 7. The assessee also furnished before the CIT(A) the copies of accounts of each creditor from the books of the assessee and contra accounts with the address and PAN Number which were duly reconciled by the CIT(A). The CIT(A) admitted these documents as such documents go to the root of the controversy involved and called for the remand report from the Assessing Officer. 8 .The Assessing Officer in remand report objected to the acceptance of the additional evidences and also stated that the assessee failed to produce supporting bills/ vouchers for the purchases made from the various parties and did not file bank details and proof of payments. In rejoinder, the assessee furnished copies of audited accounts, sample purchase bills, contra accounts with bank statements. The CIT(A) after considering the evidences produced on record before it, deleted the addition by allowing the appeal. 9. Being aggrieved, the Revenue preferred an appeal before the Tribunal. The Tribunal by the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heque, addition should have to be deleted - Whether issue being based on facts, required no consideration Held, Yes [Para 4] [In favour of assessee) 8.1. Respectfully following the above Jurisdictional High Court judgment, we have no hesitation in confirming the order passed by the Ld. CIT(A) who deleted the addition made by the Assessing Officer. Thus the grounds raised by the Revenue are devoid of merits and the same is hereby rejected. 10. Learned senior standing counsel Mr. Patel for the Revenue submitted that the CIT(A) could not have admitted the additional evidence as per the provisions of Rule 46A (2) of the Income Tax Rules, 1962 (for short the Rules ) as the assessee has not furnished any sufficient cause for not submitting the evidence and had remained absent in the assessment proceedings though sufficient opportunity was given and thereafter could not have produced any evidence before the CIT(A) without justifying as to why the assessee did not respond to the notices issued and ten opportunities given by the Assessing Officer. 10.1. It was further submitted that on merits also, the Assessing Officer has objected to the claim of the assessee as the assessee failed to fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se from the books of M/s. Nishra Enterprise i.e. assessee's books and the copy of Accounts of M/s. Nishra Enterprise from the books of M/s. Om Enterprise duly signed and confirmed by the party for A.Y. 2015-2016 with Bank statements to show that the payment is made. 3.1 Further, it may please be noted that the sales, debtors and stocks as per Balance Sheet as on 31-03-2014 is as under: Particulars A.Y. 2013-2014 A.Y. 2014-2015 Sales 1,42,40,576 6,04,58,664 Debtors 87,52,605 5,04,62,195 Closing Stock 7,735 1,16,42,577 Creditors 84,23,451 6,15,17,916 3.2 From the above, it is seen that the increase in creditors is due to corresponding increase in sales, debtors and closing stock. The AO has ignored this and picked up only creditors. This is not best judgement. 4. The chart is also given as under: SN Name of Party Address Amount Rs. Confirmation PAN 01 Kingston Peptech P.Ltd. Survey No. 172 Kotwad-Sonasan Road Post; Sonasan Ta.Prantij, Dist S.K. 5,32,62,380 In the form of contra account duly signed by creditor AADCK5743A 02 M/s. Om Enterprise Javahar Market, Ahmedabad Road, Dehgam-382305 82,55,537 In the form of contra account duly signed by creditor ASTPP8412G Total: 6,15,17,917 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee was prevented by sufficient cause from producing the evidence which he was called upon to produce by the Assessing Officer: 46A. (1) The appellant shall not be entitled to produce before the [Deputy Commissioner] (Appeals) or, as the case may be, the Commissioner (Appeals), any evidence, whether oral or documentary, other than the evidence produced by him during the course of proceedings before the Assessing Officer, except in the following circumstances, namely : (a) where the Assessing Officer has refused to admit evidence which ought to have been admitted ; or (b) where the appellant was prevented by sufficient cause from producing the evidence which he was called upon to produce by the Assessing Officer ; or (c) where the appellant was prevented by sufficient cause from producing before the Assessing Officer any evidence which is relevant to any ground of appeal ; or (d) where the Assessing Officer has made the order appealed against without giving sufficient opportunity to the appellant to adduce evidence relevant to any ground of appeal. (2) No evidence shall be admitted under sub-rule (1) unless the [Deputy Commissioner] (Appeals) or, as the case may be, the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X
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