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2019 (2) TMI 632 - AT - Income TaxAddition of unsecured loan - AO did not provide due opportunity to the assessee to submit relevant documentary evidence during assessment proceedings and made addition - Held that:- AO alleged that during the course of assessment proceedings, the assessee was asked to furnish the names and address of the person from whom the firm has received unsecured loan and also asked to furnish the date and mode of receipt of loan but there is no mention regarding issuance of any notice or notesheet entry requiring the assessee to furnish abovenoted documentary evidence or details. Therefore, clearly observe that the AO did not provide due opportunity to the assessee to submit relevant documentary evidence during assessment proceedings and made addition. CIT(A) simply reproduced the observations of the AO and confirmed the addition by observing that even during the course of appellate proceedings the assessee has not given address of loan creditors, date on which alleged loan was obtained and whether the same was received through cheque or cash. CIT(A) also observed that in absence of date of obtaining loan, it cannot be said that they are old loans. No mention regarding issuance of any notice to the assessee or any notesheet entry seeking the required details by the first appellate authority. If the AO or appellate authority is not specifically asking the assessee to submit specified documentary evidence or details and adjudicating the issue against the assessee in absence of such relevant documentary evidence and details, then can safely presume that the assessee was not allowed due opportunity of hearing by the authorities below to submit its case along with supporting documentary evidence and relevant details. Therefore, second limb of rule 29 of the ITAT Rules, 1963 is to be pressed in service for admission and consideration of additional evidence submitted by the assessee before the Tribunal. In view of foregoing discussions, the additional evidence filed by the assessee including other relevant details of the creditors are relevant and necessary evidence, which should be taken on record to meet the ends of justice and to sub-serve the purpose and cause of justice. Therefore, application of the assessee for taking additional evidence is allowed under rule 29 of the ITAT Rules, 1963 and additional evidence is taken on record for consideration. Since the AO was not allowed to verify and examine the documentary evidence, which has been admitted as additional evidence in earlier part of this order, therefore, the issue of unsecured loan/creditors is restored to the file of AO for fresh examination - Appeal of the assessee is allowed for statistical purposes.
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