ITO Vs Borze India Pvt. Ltd. (ITAT Delhi)
Rule 46A can’t be bypassed even if evidences are official records or available in public domain : ITAT restores issue to CIT(A) on improper admission of additional evidence
Delhi ITAT allowed Revenue’s appeal for statistical purposes & set aside the order of CIT(A) on the limited issue of admission of additional evidence. Tribunal noted that CIT(A) admitted substantial additional evidence, including VAT returns to justify cash sales, without recording satisfaction under Rule 46A & without calling for any remand report or comments from AO. ITAT held that even if evidences are official records or available in public domain, mandatory requirements of Rule 46A cannot be bypassed. Where assessee claimed that AO refused to accept evidences, an opportunity ought to have been given to AO to rebut such assertion. Accordingly, the matter was restored to the file of CIT(A) to adjudicate the application afresh strictly in accordance with Rule 46A & after following due procedure. Revenue appeal was thus allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is preferred by the Revenue against the order dated 25.06.2025 of the ld. National Faceless Appeal Centre (NFAC) Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No: ITBA/NFAC/S/250/2024-25/1066002276(1) arising out of the order dated 29.12.2019 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ITO, Ward 5(1) Delhi for AY: 2017-18.
