Taxpayer Deserves Opportunity To Furnish Additional Evidence If Critical To Issue, Before Completing Assessment U/s 144: Chandigarh ITAT
Pankaj Bajpai
7 Feb 2024 9:04 AM GMT
On finding lack of opportunities provided to Assessee and in interest of substantial justice, the Chandigarh ITAT remanded the matter to the file of CIT(A) to examine the matter of exemption u/s 10(23C) of the Income tax Act, 1961 afresh.The Bench comprising of Sanjay Garg (Judicial Member) and Vikram Singh Yadav (Accountant Member) observed that, “the additional evidence so submitted...
On finding lack of opportunities provided to Assessee and in interest of substantial justice, the Chandigarh ITAT remanded the matter to the file of CIT(A) to examine the matter of exemption u/s 10(23C) of the Income tax Act, 1961 afresh.
The Bench comprising of Sanjay Garg (Judicial Member) and Vikram Singh Yadav (Accountant Member) observed that, “the additional evidence so submitted is critical and germane for deciding the matter under consideration and given that the assessment has been completed u/s 144, the assessee deserve to be allowed an opportunity to furnish the necessary explanation and documentation in support of its claim for exemption u/s 10(23C)(iiiad) of the Act.” (Para 8)
As per the brief facts of the case, the Assessee's return was selected for scrutiny, wherein AO observed that the assessee society has failed to furnish the details/ information to substantiate its claim under section 10(23C)(iiiad) and therefore the exemption claimed was disallowed and accordingly addition was made. Hence, on the basis of AO's observation and in the absence of any reply towards the notice and questionnaire issued by the AO, the AO framed the assessment u/s 144. The CIT(A), also sustained the said addition made by AO.
The Coram noted that the assessee sought permission of the CIT(A) to produce additional evidence as per the Rule 46A but CIT(A) has failed to record any finding either accepting or rejecting the additional evidence so submitted by the assessee.
The Bench observed that the assessee has come forward with an explanation regarding non-appearance before the AO and has also moved an application seeking permission to submit the additional evidence, which was incumbent on part of the CIT(A) to consider the said prayer of the assessee for submitting additional evidence.
Therefore, on finding the merits of contention left open and not adjudicated, the ITAT allowed the assessee's appeal for statistical purpose.
Counsel for Appellant/ Taxpayer: Ashwani Kumar
Counsel for Respondent/ Department: Rohit Sharma
Case Title: Baba Kishan Dasss Education & Charitable Society Verses ITO
Case Number: ITA NO. 467/Chd/ 2023
