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2020 (5) TMI 74 - AT - Income TaxDenial of natural justice - no opportunity granted by show cause notice - admission of additional evidence under Rule 46A of the IT Rules refused - As per assessee no realistic opportunity was given to the assessee to comply with the notice seeking relevant details - HELD THAT:- Final show cause notice dated 27-12-2017 issued by the AO sought details and explanations on certain expenses in question expecting the assessee to comply therewith on the very next day i.e. 28-12-2017 and the assessment order was eventually passed on 29-12-2017. It is thus, apparent that the opportunity granted by show cause notice was illusory and an empty formality to complete the assessment. An assessment order passed in contravention of natural justice is a nullity in the eyes of law. Clause-(b) of Rule 46A itself clearly spells out that an assessee would be entitled to produce additional evidence before the CIT(A) where he was prevented by sufficient cause from producing the evidence which he was called upon to produce by the AO. The case of the assessee squarely falls within the circumstances explicitly laid down under Rule 46A. Be it as it may, the powers of CIT(A) is not fettered or circumscribed by Rule 46A for admission of additional evidences. In view of the mandate of the provisions of s.250(4) of the Act also, the situation existing in the case as narrated above, clearly warranted admission of additional evidence by the CIT(A). We thus find apparent fallacy in the action of the CIT(A). The order of CIT(A) on the subject matter of appeal is thus set aside and restored to the file of AO for denovo adjudication - Assessee appeal allowed for statistical purposes.
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