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2015 (5) TMI 430 - PATNA HIGH COURTViolation of the principles of natural justice - Whether ITAT before taking into consideration the additional evidence provided no opportunity whatsoever to the Assessing Officer? - Held that:- The power of the appellate authority clearly overrides the provisions of Sub-Rules (1), (2) and (3) of Rule 46 A and it is open to the said authority to look into any additional document if it considers the same as required to dispose of the appeal or for any other substantial cause. As a matter of fact, the principal reason for the CIT (Appeals) in allowing the appeal was the fact that the Assessing Officer had failed to issue specific notice with regard to the investment of ₹ 8 lacs made in M/s Rajesh Corporation Limited and further, he has come to the conclusion that ₹ 8 lacs was fully explained on the basis of balance sheet filed during assessment proceeding itself. It was only to further verify the statements in the balance sheet that he had additionally called for the bank statements to verify the said transaction of ₹ 8 lacs which had resulted in the balance sheet showing NIL in the account of M/s Sagar Sahkari Grih Nirman Samiti Limited in the assessment year in question. Thus, it was a clear cut case of exercise of the overriding power under Rule 46A(4) of the Rules and not really a case of permitting an assessee to file fresh document on the prayer of the assessee. The substantial question of law is, therefore, answered in favour of the assessee in view of the provision of Sub Rule (4) of Rule 46 A. - Decided against revenue.
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