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TMI Blog2012 (7) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... nts before the AO and was also asked to explain why the receipts shown in the income & expenditure account be not treated as income of the year without giving deduction of expenditure claimed, as no books of account were found during the survey for assessment year under appeal and likewise no vouchers for expenses were found in survey. This fact was accepted by the Secretary during the course of survey as well as on 18.09.2008 during the reply to summons u/s. 131(1) of the IT Act. It was made clear to the Secretary of the society that if no satisfactory explanation is filed, assessment would be completed on merits. The AO allowed time to the assessee to file the explanation and the required documents of the expenses and also produced the vouchers of the expenses several times and lastly the case was fixed before the AO on 09.12.2009 for compliance and on that date, nobody attended and no details were furnished before the AO. Therefore, the AO proceeded to pass assessment. The AO noted that survey u/s. 133A was conducted on 16.09.2008 in the office premises of the society and certain books of account and loose papers were impounded. The cash book impounded was for the assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sted for admission of additional evidences u/r. 46A. The same were sent to the AO for filing the remand report and the AO in the remand report did not raise any objection for admission of the additional evidence. The AO, however, in the remand report submitted that the assessee was required to produce books of account, vouchers and other relevant documents and case was fixed on 09.06.2011 in the remand proceedings and on that date the assessee produced certain bills and vouchers for the first time for verification. On verification of these bills and vouchers, it was found that the same were self made and without supporting bills and vouchers were found unsigned. The same were not produced at the time of survey as well as at the time of assessment proceedings. The assessee filed reply before the ld. CIT(A) against the remand report of the AO and submitted that the assessee produced day-to-day cash book, ledger and also submitted photocopies of 10% of vouchers along with supporting evidence. It was also submitted that the report of the AO is not true because self made vouchers were supported by bills and where the bills are not attached with vouchers, receiver's signatures are there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the ld. CIT(A) and submitted that evidences were produced before the ld. CIT(A), on which remand report was called for. Therefore, ld. CIT(A) on examination of the evidence and vouchers rightly deleted the addition. 5. We have considered the rival submissions and perused the findings of authorities below. Rule 46A of the IT Rules provides as under : "Production of additional evidence before the Deputy Commissioner (Appeals) and Commissioner (Appeals). 46A. (1) The appellant shall not be entitled to produce before the Deputy Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals), any evidence, whether oral or documentary, other than the evidence produced by him during the course of proceedings before the Assessing Officer, except in the following circumstances, namely :- (a) where the Assessing Officer has refused to admit evidence which ought to have been admitted ; or (b) where the appellant was prevented by sufficient cause from producing the evidence which he was called upon to produce by the Assessing Officer ; or (c) where the appellant wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 46A in the matter. 5.2 Further it is not in dispute that the assessee did not produce any vouchers of expenses before the AO at the assessment stage. During the course of survey, no regular books of account were found to have been maintained because the impounded cash book was written only from pages 1 to 12 in which month-wise receipts were noted without giving dates and without mentioning the dates of expenses. No vouchers of expenses were also found during the course of survey. Thus, the receipts of the assessee on account of donations, contribution, expenses were not subjected to verification. Similarly, expenses claimed by the assessee were also not subjected to verification in the absence of production of any vouchers. Total receipts of the assessee were treated as income from other sources in the absence of details of the receipts. The Secretary of the Society also admitted in the survey proceedings in her statement that no receipts of donations have been issued to donors. The Secretary of the Society also admitted in her statement that no regular books of account have been maintained and likewise, no vouchers for expenses were found during the course of survey. Even the ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee produced day-to-day cash book, ledger along with supporting bills and vouchers. Since no regular books of account were found maintained by the assessee in survey and no vouchers were produced during the course of survey and the assessment proceedings, therefore, there was chance that the assessee would have prepared the self-made vouchers for the first time at the appellate stage. Therefore, the ld. CIT(A) should have considered the totality of facts and circumstances before granting substantial relief to the assessee. The statement of Secretary recorded at the time of survey u/s. 131 has also not been considered by the ld. CIT(A) properly, in which she has accepted the fact that no regular books of account have been maintained and no vouchers for expenses have been found during the course of survey. Therefore, such self made vouchers and unsupported vouchers should not have been admitted at the first appellate stage and that too without assigning any reason for admission of the same. It, therefore, appears that the ld. CIT(A) without appreciating the facts of the case and without properly examining the material on record, has wrongly allowed the appeal of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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