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2015 (5) TMI 477 - AT - Income TaxAddition on Sundry Creditors - CIT(A) deleted the addition - whether CIT(A) has erred in accepting the additional evidence during the course of appellate proceedings without giving any opportunity to the AO to cross examine the additional evidence submitted by AOI? - Held that:- The Tribunal in the assessment Year 2008-09 in assessee;s own case held that sub-rule (3) of Rule 46A interdicts the CIT (A) from taking into account any evidence produced for the first time before him unless the AO has had a reasonable opportunity of examining the evidence and rebut the same. In the instant case, there is nothing in the impugned order of the ld. CIT (A) to show that after the objections were raised by the AO in his remand report dated 14.7.2011 against admission of additional evidence, the ld. CIT(A) asked the AO to examine the genuineness of the additional evidence. Thus, the end result has been that additional evidence was admitted and accepted as genuine without the AO furnishing his comments and without verification. Since in the case under consideration, the ld. CIT(A) did not follow the procedure laid down in Rule 46A of the IT Rules,1962 , we find merit in the contentions of the ld. DR and therefore, in the interest of justice and fair play, vacate the findings of the Ld. CIT(A) and restore the issues raised in various grounds of appeal before us to his file, with the directions to follow the mandate in terms of Rule 46A of the IT Rules, 1962 as also principles of natural justice and thereafter, dispose of the matter in accordance with law. See CIT vs. Manish Buildwell [2011 (11) TMI 35 - DELHI HIGH COURT] - Decided in favour of revenue by way of remand. Addition made on house tax paid for the directors premises - CIT(A) deleted the addition - Held that:- CIT(A) has observed that similar issue arose for adjudication in the immediately preceding year in the case of the assessee. There is no change in the facts of the case this year. Not only that, the assessments of the assessee company for the assessment years 2005-06 and 2007-08 were completed u/s. 143(3) and no such disallowance was made by the Assessing Officer. Since the properties have been taken on rent by the company for its business purposes and the rent agreements provide for payment of the house tax by the assessee company, it was held that this payment was for business considerations and was therefore an allowable expenditure in the case of the assessee. It has also been submitted that, there has been no revision of the rent of the premises for the last so many years and for that reason too the payment of house tax by the assessee was justified. In these circumstances, the disallowance made by the AO was deleted We find no infirmity in the impugned order and the Ld. CIT(A) has passed a reasoned, order and on the principle of consistency too the impugned order does not need any interference - Decided against revenue.
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