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2020 (1) TMI 319 - AT - Income TaxDisallowance of expenses - CIT(A) deleted the addition without giving an opportunity of being heard to AO to examine the additional evidence produced before him in the form of bills/vouchers, TDS Challans etc, which were not produced before the AO, as mandated by Rule 46A(3) of the Income-tax Rules, 1963 - HELD THAT:- Just giving the note will not serve the purpose. Admittedly the various details which have been referred by the learned CIT(A) were not before the assessing officer. Moreover after noting that he has himself examined the bills he has given a general assumption that expenditure must have been incurred for such transportation. When learned CIT (A) has himself verified the bills there was no need of giving such doubtful observation. In this view of the matter there is certainly violation of 46 A and the finding of learned CIT (A) is also not categorical. Accordingly, in our considered opinion the submissions and documents on the basis of which learned CIT (A) has granted relief need to be remitted to the file of Assessing Officer. The Assessing Officer is directed to go through the same and decide as per law. Transfer Pricing adjustment of Singapore AE - HELD THAT:- As regards the Transfer Pricing adjustment, ld CIT(A) has noted that assessee’s explanation appears to be acceptable and hence the assessing officer is directed to delete the above addition as the AR has established that the said Nomanbhoy & Sons Pte Ltd (Singapore) is not an associated enterprise. In this regard we note that ld CIT(A) has not given a categorical finding. He has used the expression that it “appears” to him that assessee submissions are correct. In our considered opinion such vague orders are not sustainable. There should have been a categorical finding to be sustainable in law. In our considered opinion, this issue also needs to be remitted to the file of Assessing Officer. The Assessing Officer is directed to consider the issue afresh in light of the submissions and explanations given before the learned CIT (A). Transfer Pricing adjustment - CIT(A) has referred to the assessee submissions and has directed the Assessing Officer to verify and allow - HELD THAT:- We fail to understand as to how the learned CIT(A) can give such suggestions. Firstly, the learned CIT(A) has no power of remand. Moreover the learned CIT(A) has directed to verify and in the same breath he is directing to be allowed. The direction if any in this regard can be to verify and allow as per law. Be as it may we modify order of learned CIT(A) and remit the issues to the file of assessing officer. Assessing officer is directed to examine the same afresh and pass an order according to law after giving the assessee proper opportunity appeal heard.
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