Dharam Singh Vs ITO (ITAT Delhi)
Failure to Follow Rule 46A Procedure Leads to Remand – Tribunal Allows Appeal for Statistical Purposes-CIT(A) Should Admit Evidence Filed with Proper Application – ITAT Restores Appeal
Assessee filed appeal against the order of CIT(A)/NFAC, Delhi dated 20.12.2023 confirming assessment framed u/s 143(3) r.w.s. 147, wherein total income was determined at ₹1.50 crore as against returned income of ₹6.45 lakh.
During appellate proceedings, assessee produced certain documents before CIT(A) for the first time but failed to accompany them with a proper application under Rule 46A of the Income-tax Rules, 1962. CIT(A) therefore declined to admit the evidences & dismissed the appeal.
Before Tribunal, no one appeared for Assessee. After hearing the Departmental Representative, Tribunal noted that CIT(A) did not consider the documents merely because they were not filed in compliance with Rule 46A. Observing that the assessee should be given an opportunity to produce relevant material, Tribunal remanded the matter to CIT(A) for de novo adjudication.
Tribunal directed that Assessee may file additional evidences along with a formal Rule 46A application, & if such an application is made, CIT(A) shall decide it in accordance with law after giving due opportunity of hearing. However, if Assessee fails to furnish the application or evidences within a reasonable time, CIT(A) shall be free to decide the appeal on merits.
