TMI Blog2017 (2) TMI 1473X X X X Extracts X X X X X X X X Extracts X X X X ..... y him while adjudicating first appeal of the assessee as no justification were given by the assessee for non-filing of these evidences before the learned AO. Further, these large number of additional evidences were also not forwarded by learned CIT(A) to the A.O. for giving an AO an opportunity of examination, verification and seeking AO s comments as no remand report was called by the learned CIT(A) as contemplated u/r 46A(3) of Income-tax Rules,1962. The ld. CIT(A) has to record reasons in writing before accepting additional evidences filed before him by the assessee for the first time as contemplated u/r 46A(2) of Incometax Rules, 1962, which has not been done by learned CIT(A) in the instant appeal - Decided in favour of revenue for statistical purposes. - I .T.A. No.3412/Mum/2015 - - - Dated:- 21-2-2017 - SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER For The Revenue : Shri R.A. Dhyani, DR For The Assessee : Shri Rajesh V. Parekh ORDER PER RAMIT KOCHAR, Accountant Member This appeal, filed by the Revenue, being ITA No. 3412/Mum/2015, is directed against the appellate order dated 31st March, 2015 passed by the learned Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Loss Account. On perusal of the details furnished by the assessee, the A.O. observed that the discount and rebate expenses were claimed by the assessee separately in the P L account and it has been allowed to customers separately outside the sale bills. The A.O. observed that normally, in general business practice the discount and rebate were allowed by any person in the bill amount and not outside the bill amount. The AO observed that the assessee has also not furnished any calculation, reasons, justification for these expenses incurred towards discounts and rebates. In the absence of any evidences, discount and rebate given by the assessee cannot be verifiable and deserves to be disallowed were the observations of the AO. Accordingly, the A.O. disallowed an amount of ₹ 93,77,075/- claimed by the assessee towards expenses being discounts and rebates and added the same to the total income of the assessee vide assessment order dated 25-03-2014 passed by the AO u/s 143(3) of the Act of 1961 as the same were not established to have been incurred exclusively for the purposes of business of the assessee. 4. During the course of assessment proceedings u/s 143(3) r.w.s. 143(2) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee is not eligible for depreciation / depreciation on new plant and machinery for the relevant assessment year. It was also observed that the assessee has not submitted electricity bill for Chennai unit for the entire previous year ended on 31-03-2011. The A.O. observed that the assessee has not started its manufacturing activity from its Chennai unit and the assessee has not furnished any certificate for commencement/commissioning of its manufacturing activity from its Chennai unit. The A.O. accordingly came to the conclusion that the assessee failed to establish its eligibility for claiming depreciation and additional depreciation for its new plant and machinery for its new industrial undertaking at Chennai, hence, the A.O. disallowed an amount of ₹ 1,52,37,726/- towards depreciation and additional depreciation w.r.t. new Chennai undertaking and added the same back to the income of the assessee vide assessment order dated 25-03-2014 passed by the AO u/s 143(3) of the Act of 1961. 5. It was also observed by the A.O. that the assessee has purchased land for a cost of ₹ 72.75 lacs which were apparently made from the funds raised by the assessee from secured and unsecu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n merits. It was also admitted by the learned counsel for the assessee during the course of hearing before us that a large number of additional evidences were filed by the assessee before the learned CIT(A) for the first time which were annexed to statement of facts filed along with memo of appeal filed before the learned CIT(A), which evidences were not produced by the assessee before the AO during the course of assessment proceedings . It was accepted by learned counsel for the assessee that no remand report was called by the learned CIT(A) from the AO for seeking his comments/observation on these additional evidences filed by the assessee for the first time before learned CIT(A). The learned DR has taken objection to the non-compliance of Rule 46A of Incometax Rules , 1962 by learned CIT(A) before adjudication of the appeal on merits by learned CIT(A) based on reliance of additional evidences filed for the first time before learned CIT(A) during appellate proceedings. 9. We have heard rival contentions and also perused the material available on record. We have observed that the A.O. has made three additions wherein additions had been made to the income of the assessee by disa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... examination and seek remand report from the AO on these additional evidences filed before him for the first time in appellate proceedings prior to adjudicating first appeal on merits, which has not been done in the instant case by learned CIT(A) . In our considered view, since these large number of additional evidences filed by the assessee for the first time before learned CIT(A) during the course of appellate proceedings goes to the root of the matter for deciding all the three issues under appeal on merits , these additional evidences need to be admitted by the learned CIT(A) on merits after being satisfied with mandate of Rule 46A(1) r.w.r. 46A(2) of Income-tax Rules,1962 and further these additional evidences needs to be confronted to the A.O. for his examination and comments in compliance of Rule 46A(3) of Income-tax Rules, 1962 wherein Remand Report need to be called by learned CIT(A) from the AO. These statutory Rules of 1962 cannot be given a simple go-bye and when the law contemplates a thing to be done in a particular manner , the same need to be done in that manner or otherwise it is not to be done at all. Under these circumstances and factual matrix of the matter as d ..... 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