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2018 (8) TMI 128 - AT - Income TaxAdmission of additional evidence - estimate profit at the rate of 15% of the turnover - Held that:- The rules of procedure are subservient to substantive law to serve justice and not to scuttle justice at threshold on technical nitty-gritties unless malafide is writ large on the part of tax-payer which is not so in the instant case. The mandate of the 1961 Act is to compute correct taxes as per provisions of the 1961 Act which is supported by mandate of Article 265 of the Constitution of India. CIT(A) ought to have admitted these additional evidences filed by the assessee and evaluated/verified on the touchstone of merits but instead learned CIT(A) proceeded to estimate profit at the rate of 15% of the turnover (before deducting partners remuneration) after discarding these evidences at threshold on technical grounds despite evidences filed by the assessee before learned CIT(A). CIT(A) ought to have forwarded the said additional evidences to the AO for submission of remand report on merits after their evaluation/verification by the AO as per Rule 46A(3) of the 1962 Rules. The learned CIT(A) erred in not admitting additional evidences and in estimating profits despite having all evidences before it to compute income as per provisions of the 1961 Act r.w.r. 46A of the 1962 Rules. In our considered view and in the interest of substantial justice to both the parties in exercise of our powers u/s 254(1) of the 1961 to pass such orders as deem fit, the matter is restored to the file of the AO for fresh/de-novo framing of assessment by AO on merits in accordance with law after admitting all the evidences filed by the assessee .
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