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2020 (3) TMI 52 - HC - Income TaxAddition u/s 40A - Reliance upon Rule 6DD was rejected by AO quoting the procedure followed for purchase of fire wood through open bidding system as states that no farmer sells fire wood directly in the open market and hence the protection under Rule 6DD would not be available to the petitioner - in addition, certain credits appearing in the bank accounts of the petitioner were proposed to be disallowed under Section 68 - HELD THAT:- Learned counsel states that adequate opportunity was not granted to the petitioner prior to completion of assessment. My attention is drawn to the medical records of VA Sadasivam to establish the need for emergency treatment0 and expenses incurred when the partner had met with a serious accident. The petitioner is relegated to statutory appellate remedy. The order of assessment may be challenged by way of first appeal before the Commissioner of Income Tax (Appeals) within a period of three weeks from today. If the appeal is filed within the period as aforesaid, the same shall be taken on file by the office of the Commissioner (Appeals) and disposed on merits and in accordance with law, without reference to limitation. Since the powers of the Commissioner (Appeals) are co-terminus with that of the Assessing Officer, a proper enquiry be conducted as to the veracity or otherwise of the explanations tendered by the petitioner both in response to the proposal under Section 68 of the Act as well as the applicability of Rule 6DD to the disallowance under Section 40A(3). Let an order of assessment be passed de novo within a period of three months from date of institution of appeal, after hearing the petitioner. Recovery of the disputed demand shall not be insisted upon till disposal of appeal. In the event the appeal is not instituted within the time frame as aforesaid, the order of assessment now impugned shall be revived and stand undisturbed.
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