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2011 (12) TMI 337 - HC - Income TaxAdditional evidence - Rule 46A of the Income Tax Rules, 1962 - Revised return - assessee was constructing a commercial complex and showed work-in-progress at Rs. 85,18,056/- in the revised return of income as against 'Nil' work-in-progress shown in the original return of income - The learned counsel appearing for the appellant submitted that in view of the provisions of Rule 46A of the Income Tax Rules, 1961 (hereinafter called the 'Rules'), no additional documents can be produced by the assessee as of right and reasons have to be assigned by the Appellate Authority for permitting the assessee to produce the additional documents - The material on record would clearly show that the Assessing Officer had the benefit of looking into the books of account maintained by the assessee - it is clear that before the ITAT, no ground was raised regarding reception of additional evidence by the First Appellate Authority in contravention of Rule 46A of Rules and in any view of the matter, we hold that the first appellate authority was justified in relying upon the material produced and there is no violation of Rule 46A of the Rules and accordingly, answer the said question of law against the revenue and in favour of the assessee. Regarding addition u/s 40(A)(3) - assessee has been described as a family trust which is engaged in putting up commercial construction and that as observed by the Assessing Officer, certain agreements have been entered into for selling portion of the premises and even according to the submission of learned counsel appearing for the respondent, the property has now been leased and assessee was receiving rent and therefore, building was not being constructed for personal use and the obligation under Section 40(A)(3) of the Act could not said to have been absolved in respect of the assessee - Decided in favor of revenue. Regarding undisclosed income - There was an error in writing the account, the same has been rectified and return has been filed in the year 2001 and the same has been accepted by the Appellate Authorities and therefore, finding of the appellate authorities deleting the additions of undisclosed income - Decided in favor of the assessee
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