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TMI Blog2023 (1) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... ition of Rs2,23,91,526/- by admitting additional evidence during the appellate proceedings, ignoring the fact that the assessee failed to furnish these evidences during the assessment proceedings despite being given multiple opportunities by the AO and failed to explain the circumstances under which he could not produce these evidences before the AO as required under Rule 46A(1). 2. Whether on the facts and circumstances of the case and in law, the Ld Commissioner of Income Tax(Appeal), Varanasi is justified in deleting the addition of Rs2,23,91,526/ by combining the two additions of Rs2,24,57,832/- and Rs83,56,300/- as sale proceeds and applying a GP rate of 24%, ignoring the fact that the assessee had failed to produce any evidences reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee has shown the business turnover of Rs. 28,68,484/- whereas there are credit entries of more than crores of rupees in the bank account of the assessee. There was a total deposit during the year of Rs. 2,53,26,316/- whereas the profit and loss account submitted by the assessee shows the sales of Rs. 28,68,484/-. The AO sought an explanation from the assessee but no explanation was furnished by the assessee in respect of the deposits made in the current account. Accordingly, the AO held that out of the total deposit of Rs. 2,53,26,316/-, a sum of Rs. 2,24,57,820/- is excess in comparison to the sales of the assessee and consequently in the absence of any explanation from the assessee, the same was added to the income of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sr. DR has submitted that the CIT(A) has considered the additional evidence in the shape of revised balance-sheet, trading and profit and loss account, copies of bills for purchase of Medicines as well as bank account of the assessee without the same were verified and examined by the AO. He has submitted that there is a violation of Rule 46A and the matter may be remanded to the record of the Assessing Officer for proper examination of the record produced by the assessee before the CIT(A). 5. On the other hand, the learned AR of the assessee has submitted that there is no violation of Rule 46A of the Income Tax Rules as the CIT(A) has called for a remand report from the AO and the AO has submitted the remand report dated 13.8.2019. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was tried to be explained that the same was explainable as most of the entries were in the nature of self deposits, contra entries, cheque returns, personal accommodation entries etc. It was submitted that the A.O. has treated the entire deposits as unexplained deposits in the bank accounts without giving proper opportunities. It was further submitted that the appellant has made purchase of medicines through cheque as well as cash amounting to Rs. 1,97,04,575/- and Rs. 37,19,000/- respectively. However, the complete business transaction of sale and purchase of medicines were not shown in the return of income and accompanying documents and the sale has been shown only marginally at Rs. 28,68,484/- and purchases at Rs. 11,13,689/-. It was sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the verification and examination of the said evidence has passed the impugned order. Therefore, in the facts and circumstances of the case and in the interest of justice, we are of the considered opinion that the evidence produced by the assessee first time before the CIT(A) is required to be verified and examined at the level of AO. Hence, the impugned order of the CIT(A) is set aside and the matter is remanded to the record of the AO for adjudication of the same afresh after proper verification and examination of the evidence and details produced by the assessee before the CIT(A). 9. In the result, the appeal of the Department is allowed for statistical purpose. Order pronounced on 17.01.2023 at Allahabad, U.P. in accordance with Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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