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2019 (4) TMI 676 - AT - Income TaxAdmission of addition evidence - Denial of natural justice - sufficient cause for non-production of additional evidence during the assessment proceeding - penalty u/s 271(1)(c) - addition u/s section 69A and denial of benefit of deduction u/s 54B - HELD THAT:- We find that the valuation report was obtained later on hence, it was not available at the time of assessment proceeding. Further, the lower authorities did not examine the claim of the assessee of deduction under section 54. Thus, the additional evidence submitted by the assessee have a material bearing to decide the issue. Therefore, the assessee is required to be given a fair chance and opportunity to the assessee in the interest of natural justice. As incumbent upon CIT (A) to confront these evidences with the AO by seeking a remand report and to seek his comments. In absence of the same, the order passed by the CIT (A) is passed in violation of principles of natural justice. The principle of audi alteram partem is the basic concept of natural justice. The expression “audi alteram partem” implies that a person must be given an opportunity to defend himself. This principle is sine qua non of every civilized society. After taking into account all the facts and circumstances of the case, we find it appropriate to send this issue back to the file of the AO. The assessee shall submit all the evidences before the AO in support of its claim and shall be free to raise all legal and factual issues before the AO. The AO shall give adequate opportunity of hearing to the assessee and shall decide the all issues afresh after considering all the details. The assessee may place any evidences and judgements as he wants to supports his case. Penalty u/s 271 (1) (c) - Held that:- As in earlier part of this order in respect of items on which penalty was levied remanded for fresh consideration. Hence, the issue on which penalty is levied is no longer survived; therefore, penalty levied is not maintainable as of now. Accordingly, we delete the penalty so levied subject to condition that the AO is free to re-initiate penalty proceedings under section 271 (1)(c) on finalization of denova setaside assessment proceedings, if the circumstances so warrant or he thinks fit. - Decided in favour of assessee
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