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2022 (2) TMI 699 - AT - Income TaxAddition u/s 68 - Unexplained sundry creditors - HELD THAT:- During the appeal proceedings, the assessee filed confirmation letters from various parties including copies of ledgers and bank statement in respect of assessee's claim that sundry creditors are genuine creditors. These documents were sent to AO calling for remand report from him. AO instead of sending a remand report, objected vide his letter dated 8.2.2019 that the fresh evidence filed by the assessee shall not be admitted on the reason that letters issued to creditors calling for information u/s.133(6) of the Act to the address provided by the assessee were returned unserved and the assessee has not furnished correct address even after sufficient opportunities to give the particulars during the hearing. Being so, when the assessee failed to furnish requisite details even after giving adequate opportunity of hearing to the assessee, the fresh evidence by the assessee shall not be admitted by the CIT(Appeals). CIT(Appeals) overlooked the objection of the AO and considered the various additional evidence filed by the assessee before him and decided the issue in favour of the assessee on merits. When the AO objected to admission of additional evidence before the CIT(Appeals) vide his letter dated 8.2.2019, the CIT(Appeals) decided the issue on merits overlooking the letter written by the AO that fresh evidence should not be admitted. As appropriate for the CIT(Appeals) to point out to the AO that he is not going to consider the objections raised by the AO for not admitting additional evidence and he is going to decide the issue on merits. For this purpose, he should have called the comments of the AO merits of the additional evidence filed by the assessee. In the present case, the CIT(Appeals) failed to do so. Appeal of the revenue is allowed for statistical purposes.
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