Mihir Bhoj Post Graduate College Vs ITO (ITAT Delhi)
The case involves Mihir Bhoj Post Graduate College appealing against an addition of ₹34,81,180/- to its taxable income by the Income Tax Officer (Exemption) Ghaziabad, which was upheld by the Commissioner of Income Tax (Appeals) National Faceless Appeal Centre (NFAC), New Delhi. The addition was based on unexplained cash deposits, and the college had filed an application for additional evidence under Rule 46A of the Income Tax Act to support its case. However, the CIT(A) rejected the application, as the college had failed to comply with earlier notices from the Assessing Officer and did not submit the required documentation in a timely manner.
The assessee’s counsel argued that the additional evidence filed was crucial for resolving the matter and should be considered for a fair adjudication. The Income Tax Appellate Tribunal (ITAT), after hearing both parties, agreed with the assessee’s arguments, acknowledging that the failure to submit the evidence earlier was due to delays in preparation, and the evidence was vital for a proper assessment. The ITAT directed the matter to be remanded to the Assessing Officer (AO) for a fresh evaluation, including the new evidence and any further submissions the assessee might make. The AO was instructed to grant a fair hearing to the assessee and pass a reasoned order based on all the evidence, including the newly admitted additional documents.
