Om Parkash Banwani Vs ACIT (ITAT Agra)
The Agra Bench of the ITAT set aside the order of the CIT(A), NFAC and restored the appeal for de novo adjudication, holding that crucial additional evidence filed under Rule 46A cannot be brushed aside.
The Assessee, engaged in manufacturing hulled sesame seeds, had received unsecured loans aggregating to ₹50.20 lakh from multiple parties. The AO treated the loans as bogus u/s 68, alleging failure to establish identity, creditworthiness and genuineness.
Before the CIT(A), the Assessee filed a proper Rule 46A application along with confirmations, Forms 15G/15H, PAN, Aadhaar, ITRs, bank statements of creditors, and the Assessee’s own bank statements, also pointing out that some loans were old balances and not fresh credits during the year. Despite reproducing these submissions, the CIT(A) refused to admit the evidence and upheld the addition.
The Tribunal held that the additional evidence was vital to the core issue under section 68 and required factual verification. In the interest of justice and fair play, the ITAT directed the CIT(A) to admit the additional evidence and adjudicate the matter afresh on merits, with liberty to the Assessee to file further material, subject to cooperation and no unnecessary adjournments.
Consequently, all grounds were restored to the CIT(A) and the appeal was allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT AGRA
