ITO Vs Baldev Prasad Patel (ITAT Raipur)
CIT(A) Deleted ₹15.81 Cr Addition Based on Fresh Evidence Without Remand Report—Matter Remanded Back for Rule 46A Violation
Revenue challenged the NFAC order dated 07.08.2025 whereby the CIT(A)/NFAC deleted an addition of Rs.15,81,34,560/- made u/s 69A. Assessee had neither filed a return nor responded to notices u/s 148 & 142(1), due to which the AO completed reassessment u/s 147 r.w.s 144 r.w.s 144B based on huge cash deposits in a Punjab National Bank account.
CIT(A)/NFAC accepted fresh evidences-including communications from PNB & details showing that the bank account actually belonged to Bharat Financial Inclusion Ltd. where the Assessee was only an authorised signatory-& deleted the entire addition without seeking a remand report from the AO.
ITAT held that such acceptance of new evidence violated mandatory Rule 46A(3), particularly when CIT(A) relied on materials not before the AO. The Tribunal observed that a mere typographical reference to SBI in the AO’s order could not justify deletion without verifying PNB records. Noting non-application of mind by NFAC & breach of natural justice to the AO, the Tribunal set aside the NFAC order & restored the matter to CIT(A)/NFAC for fresh adjudication, permitting remand report & directing a reasoned order after giving proper opportunity. The Revenue’s appeal was thus allowed for statistical purposes.
