TMI Blog2024 (1) TMI 1196X X X X Extracts X X X X X X X X Extracts X X X X ..... ent cause from producing the evidence which he was called upon to produce by the Assessing Officer. In view of the above provisions of Rule 46A of the Rules, the assessee being an illiterate person could not appear before the Assessing Officer and the appellate proceedings being the continuation of the assessment proceedings, the CIT(A) has rightly permitted the assessee to produce the additional evidence in consonance with the Rule 46A of the Rules. Decided against revenue. - HONOURABLE MR. JUSTICE BHARGAV D. KARIA AND HONOURABLE MR. JUSTICE NIRAL R. MEHTA Appearance: For the Appellant(s) No. 1 : Mr. Varun K. Patel(3802) For the Opponent(s) No. 1 ORAL ORDER (PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA) 1. Heard learned senior standing counsel Mr. Varun K. Patel with learned advocate Mr. Dev Patel for the petitioner. 2. By this Tax Appeal under Section 260A of the Income Tax Act, 1961 (for short the Act ), the appellant-Revenue has proposed the following substantial questions of law arising out of the order dated 26.07.2023 passed by the Income Tax Appellate Tribunal, Ahmedabad- B Bench (for short the Tribunal ) in ITA No. 1640/Ahd/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ease in sales, debtors, closing stock and creditors as per the balance sheet and contended that the Assessing Officer ignored the increase in sales, closing stock but only picked up the creditors amount and made addition as bogus creditors without any justification. 7. The assessee also furnished before the CIT(A) the copies of accounts of each creditor from the books of the assessee and contra accounts with the address and PAN Number which were duly reconciled by the CIT(A). The CIT(A) admitted these documents as such documents go to the root of the controversy involved and called for the remand report from the Assessing Officer. 8 .The Assessing Officer in remand report objected to the acceptance of the additional evidences and also stated that the assessee failed to produce supporting bills/ vouchers for the purchases made from the various parties and did not file bank details and proof of payments. In rejoinder, the assessee furnished copies of audited accounts, sample purchase bills, contra accounts with bank statements. The CIT(A) after considering the evidences produced on record before it, deleted the addition by allowing the appeal. 9. Being aggrieved, the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere supported by bills, entries were made in books of account and payment was made by cheque, addition should have to be deleted - Whether issue being based on facts, required no consideration Held, Yes [Para 4] [In favour of assessee) 8.1. Respectfully following the above Jurisdictional High Court judgment, we have no hesitation in confirming the order passed by the Ld. CIT(A) who deleted the addition made by the Assessing Officer. Thus the grounds raised by the Revenue are devoid of merits and the same is hereby rejected. 10. Learned senior standing counsel Mr. Patel for the Revenue submitted that the CIT(A) could not have admitted the additional evidence as per the provisions of Rule 46A (2) of the Income Tax Rules, 1962 (for short the Rules ) as the assessee has not furnished any sufficient cause for not submitting the evidence and had remained absent in the assessment proceedings though sufficient opportunity was given and thereafter could not have produced any evidence before the CIT(A) without justifying as to why the assessee did not respond to the notices issued and ten opportunities given by the Assessing Officer. 10.1. It was further submitted that on meri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. duly signed and confirmed by the party for A.Y. 2015-2016 with Book statements to show that the payment is made. (d) The copy of accounts of M/s. Om Enterprise from the books of M/s. Nishra Enterprise i.e. assessee's books and the copy of Accounts of M/s. Nishra Enterprise from the books of M/s. Om Enterprise duly signed and confirmed by the party for A.Y. 2015-2016 with Bank statements to show that the payment is made. 3.1 Further, it may please be noted that the sales, debtors and stocks as per Balance Sheet as on 31-03-2014 is as under: Particulars A.Y. 2013-2014 A.Y. 2014-2015 Sales 1,42,40,576 6,04,58,664 Debtors 87,52,605 5,04,62,195 Closing Stock 7,735 1,16,42,577 Creditors 84,23,451 6,15,17,916 3.2 From the above, it is seen that the increase in creditors is due to corresponding increase in sales, debtors and closing stock. The AO has ignored ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eedings cannot be ignored. The ratio in the case of Jute Corporation of India Ltd. 187 ITR 688 (SC) is applied to give fresh look once again to the evidences contained in paper book on record. In my opinion, there is no discrepancy in the sundry creditors which can be added to the taxable income of the appellant. The addition of Rs. 5,30,94,465/- is hereby deleted. The ground no. 1 is allowed. 5.1 Ground no. 2 is about the provisions u/s 144 and applicability. The additional evidences have already been considered during remand proceedings. Both AO and appellant have taken hard stand on the issue. Nevertheless the appellant does not have any grievance after the remand proceedings. Therefore, the ground no. 2 is hereby dismissed. 12. The CIT(A) has considered the aspect of additional evidence as objected by the Assessing Officer and after considering the explanation of the assessee that the assessee was illiterate person and has studied upto fourth standard and he was not able to read English Language, we are of the opinion that the provision of Rule 46A(1) more particularly Sub-clause(b) thereof which reads as under is complied with as the assessee was prevented by suffi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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