Additional Evidence under Rule 46A must be allowed for reasonable cause

Brief of the Case:

In the case of M/s ONS Creations Private Limited Vs. ITO, it was held by ITAT Delhi that if additional evidence can not be produced before AO for a reasonable cause by assessee, the CIT (A) must admit the additional evidences and assessee must be given an afresh opportunity of being heard.

Brief Facts of the Case:

The assessment in assessee’s case was completed U/s 144 of the Income tax Act, 1961 by AO. On appeal being filed by assessee, the CIT (A) passed an order U/s 263 and directed the AO to make an addition on account of unexplained loans along with any interest claimed on those loans and a further addition on account of unexplained share capital as the assessee failed to establish before the CIT (A) during the proceedings U/s 263 the identity and creditworthiness of the persons from whom the aforesaid loans and share capitals shown to have been received.

Please become a Premium member. If you are already a Premium member, login here to access the full content.