Top Stories ITAT Restores Matter to AO for Fresh Assessment, allowing Assessee to Submit Additional Evidence [Read Order] The ITAT found that the CIT(A) had wrongly dismissed the additional documents without proper consideration By Sneha Sukumaran Mullakkal – On November 7, 2024 1:54 pm – 2 mins read The Delhi Bench of Income Tax Appellate Tribunal ( ITAT ) restored the matter to the Assessing Officer (AO) for a fresh assessment, allowing the assessee to submit additional evidence. Simmi Madan, appellant-assessee,had filed an appeal against the assessment order dated 13th December 2019, passed under Section 144 read with Section 147 of the Act. The AO had determined her income at ₹65,50,000, while she had declared a NIL income.

Boost Your Business with SME IPO Funding Strategies – Enroll Now Aggrieved by the assessment order, the assessee approached the Commissioner of Income Tax (Appeals) [CIT(A)], submitting an application under Rule 46A of the Income Tax Rules, 1962, to produce additional documents. However, the CIT(A) dismissed the application, citing that the Assessee failed to fulfill any of the conditions prescribed under Rule 46A. The CIT(A) also dismissed the appeal on merit. The assessee, unsatisfied with the decision, preferred an appeal before the Tribunal.During the hearing, the assessee’s counsel strongly argued that the CIT(A) had erred in not allowing the additional documents, which were essential for the proper adjudication of the case. Boost Your Business with SME IPO Funding Strategies – Enroll Now

The assessee contended that these documents could substantiate her claim and that she had a strong case on merit. The Departmental Representative (DR), however, supported the orders of the lower authorities and sought the dismissal of the appeal. After considering the submissions from both parties, the tribunal observed that the assessee had been provided with sufficient opportunities during the assessment proceedings but had failed to appear before the AO. As a result, the assessment was framed under Section 144 of the Act.

Boost Your Business with SME IPO Funding Strategies – Enroll Now Despite this, the ITAT found that the CIT(A) had unjustly dismissed the additional evidence without due consideration. The tribunal held that the CIT(A) should have reviewed the additional documents and decided the case on merit. The two member bench comprising Yogesh Kumar U.S (Judicial Member) and Shamim Yahya (Accountant Member) restored the matter to the file of the AO, allowing the Assessee to submit the documents and requiring the AO to pass a fresh assessment order, providing a fair opportunity to the assessee. In conclusion,the assessee’s appeal was partly allowed for statistical purposes.