Oritex Exports LLP vs Income Tax Officer

PER MANISH AGARWAL, AM:

This appeal is filed by the assessee against the order of Learned Commissioner of Income Tax (Appeals), [‘the CIT(A) in short] National Faceless Appeal Centre (NFAC), New Delhi dated 17.11.2024 in Appeal No. NFAC/2019-20/10182433 arising out if the assessment order passed u/s 143(3) of the Act dt. 26.09.2022 for Assessment Year 2020-21.

The Ground of appeal Nos.2 & 3 are with respect to the action of Ld. CIT(A) in not admitting the additional evidences filed by the assessee u/R 46A of the during the course of appellate proceedings.

Before us, Ld. AR of the assessee submits that the assessee has filed certain additional documentary evidences alongwith a prayer U/R 46A of the Income Tax Rules, 1962 (the Rules) explaining the circumstances under which it was prevented to file these details before the AO. However, ld. CIT(A) without appreciating the circumstances beyond the control of the assessee, denied to admit the same and dismissed the appeal of the assessee. The Ld. AR further submits that the assessment in this case was completed where the addition u/s 68 of the Act was made towards the contribution made by the partners in their capital accounts and since short time of only three days was provided from the show cause notice and, therefore, the requisite details could not be produced before the AO. It is thus requested by Ld. AR that the additional evidences filed by the assessee be admitted and one more opportunity be allowed to the assessee to represent its case before Ld. CIT(A).

On the other hand, the Ld. CIT. DR vehemently supported the order of lower authorities and objected to the prayer of the assessee. It is submitted that despite of many opportunities, the assessee has not filed the details to establish the source of investment towards the partners’ capital. It is further submitted that the necessary evidences of the source of investments are to be filed by the partners and not to be obtained from any outside party thus the ld. CIT(A) has rightly rejected the additional evidences filed by the assessee. She prayed accordingly.

Heard both the parties at length and perused the material available on record. It is seen that Ld. CIT(A) has not admitted the additional evidences filed by the assessee for the sole reason that assessee has not given any cogent reasons as to why such documents were not produced before the AO despite of ample opportunities. On perusal of the additional evidences filed before ld. CIT(A), it is observed that the details so filed are crucial and goes to the root of the matter. It is true that they were not filed by the assessee before the AO however, the assessee should not be left unheard. Therefore, in the interest of justice, we direct the Ld. CIT(A) to admit the additional evidences filed by the assessee and decide the appeal of the assessee on merits after obtaining the remand report, if needed, from the AO. Needless to say the assessee be provided sufficient opportunities of being heard. The assessee also directed to file all the necessary evidences in support of the claim before the Ld. CIT(A) in addition to the evidences already filed. With these directions, Ground of appeal Nos. 2 & 3 of the assessee are allowed for statistical purposes.

Since we have already allowed assessee’s grounds of appeal Nos. 2 & 3 and restored the appeal back to the file of ld. CIT(A) after admitting the additional evidences filed by the assessee, thus the remaining grounds of appeal are not adjudicated.

In the result, the appeal of the assessee is allowed for statistical purposes.