Case Law Details
Sunil Kumar Garg Vs ITO (ITAT Delhi)
ITAT Delhi CIT(A) directed to accept the additional evidence and submission and pass the order after granting adequate personal hearing as there was reasonable cause of ailment that prevented assessee to supply documents and replies.
Facts- The assessee is in the business of trading of menthol oil. Show cause notice was issued to the assesse asking to explain the difference of Rs. 1,47,10,075/-. However, the show cause notice remained uncomplied with and further two show cause notices were also issued to the assessee but assessee made no compliance with the same.
In the absence of any reconciliation being provided by the assessee between the balances appearing in the books of assessee and the creditworthiness in question, the AO considered the difference amount of Rs.1,47,10,075/- as the amount representing remission or cessation of trading liability u/s 41 (1) of the Act.
Before the ld. CIT (A), assessee submitted additional evidences & documents and wanted opportunity to be heard. However, ld. CIT (A) held that sufficient opportunity has been given to the assessee and he has not responded. So, he declined to admit the application under Rule 46A of the Income-tax Rules, 1962.
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