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2014 (9) TMI 570 - AT - Income TaxAdmission of additional evidence – Violation of Rule 46A - Addition u/s 68 – Unexplained share application money – Whether the CIT(A) was justified in admitting the additional evidence in such circumstances and then deleting the addition by holding that the assessee discharged the initial burden to prove the genuineness of the credit entries - Held that:- A notice has been issued u/s 142(1) of the Act, and the assessee was asked to furnish copies of the Annual accounts with Schedules and Computation of income, which were not furnished - The assessee intentionally ignored the assessment proceedings and no effective case has been made out that it was prevented by a sufficient cause in producing the books of account and relevant evidence before the AO during the course of assessment proceedings. The assessee did place such things before the CIT(A) and the further fact that the purpose of assessment is to determine correct total income, the assessee should be granted with one more opportunity to adduce necessary details and books of account etc. before the AO enabling him to finalize the assessment as per law - the requirement of sub-rule (3) of Rule 46A can be met under the given circumstances, if either the CIT(A) is directed to send the additional evidence to the AO by communicating that his threshold objection was not acceptable and he may examine the additional evidence on merits or the matter is restored to the AO with a direction to decide this issue afresh after taking into consideration the additional evidence filed by the assessee before the CIT(A) and allowing a further opportunity to the assessee to lead further evidence, if any - the second course of action is more befitting and time saving as well – thus, the order is set aside and the matter is remitted back to the AO for fresh adjudication for the question of addition u/s 68 – Decided in favour of revenue. Prior paid expenses for sales tax disallowed – Held that:- Following the decision in DCIT Vs Glaxo Smithkline Consumer Healthcare Ltd. [2007 (7) TMI 334 - ITAT CHANDIGARH] - deduction for sales tax or other tax and duty etc. is allowable u/s 43B on payment basis - As the nature of the amount paid by the assessee, being sales tax is not disputed and the further fact that such sum was paid during the previous year, CIT(A) was justified in allowing the claim – Decided against revenue. Various expenses disallowed - Marketing expenses, reduction in foreign travelling expenses, unexplained foreign travelling expenses, miscellaneous expenses and depreciation on certain additions to the fixed assets - Held that:- The assessee did not furnish supporting bill/vouchers of such expenses before the AO for examination - CIT(A) has deleted the addition by relying on the additional evidence in contravention of rule 46A(3), thus, the matter on these issues is liable to be remitted back to the AO for fresh adjudication – Decided in favour of revenue.
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