CIT (A) non admission of confirmation of account as additional Evidence – ITAT restored the matter to AO for fresh adjudication

 

The AO has passed an assessment order during the pendency of confirmation from parties to whom notice u/s 133(6) of the Act was issued. The confirmations were submitted as additional evidence before honourable CIT(A) & the same was rejected.

The question was whether the CIT (A) was right in rejecting such confirmation under rule 46A as additional evidence which was received after the assessment order?

Let us have a Short Overview of the case which is attached herewith:

Brief Facts:
The assessee sold the properties and part of the proceeds were kept as FDs, and those FDs were withdrawn to give advance to parties for purchasing the property. Due to legal issues, they decided to cancel the agreement and repaid the money and the same was deposited into the bank account.

The AO, to confirm the genuineness of the transaction issued notice u/s 133(6) to parties on 15/12/2019 and passed the assessment order on 30/12/2019 whereas confirmation was received on 13/01/2020. The parties’ confirmation was submitted as additional evidence before the CIT(A) and the same was rejected.

With above facts, the decision of Honourable ITAT:

therefore, in the interest of justice and equity, we are of the view that the confirmation given by the intended sellers of the property needs examination. Accordingly, we restore the matter to the files of the AO for fresh adjudication”.

The Copy Of the order is as under:

1741015927946