Indian Kanoon - Search engine for Indian Law

8. Both sides heard, orders of the authorities below examined. The short issue in appeal by the Department is against deleting of disallowance of Land Development Expenditure by the CIT(A). The Revenue has also alleged that 1322/Del/2011 & 2024/Del/2012 (AY 2007-08 & 2008-09) additional evidence was admitted without granting sufficient opportunity to the AO in violation of Rule 46A. A perusal of the impugned order reveals that the assessee had filed certain additional evidences in the form of copies of ITR's, confirmation and affidavits etc. from the parties to whom payments were made for Land Development. The written submissions and additional evidences were forwarded to the AO and remand report was sought. The Assessing Officer submitted remand report vide letter dated 03.12.2010. The CIT(A) while admitting the additional documentary evidences filed by the assessee observed that during assessment proceedings, the AO provided Inspector report to the assessee on 18.12.2009 at 6 P.M and asked the assessee to furnish requisite documents in relation to payments amounting to Rs.2,11,28,720/-. The assessee vide letter dated 24.12.2009 pointed that due to holidays from 25.12.2009 to 28.12.2009 it is not possible to produce parties or procure documents from the parties in such a short time. The AO completed the assessment on 30.12.2009 as assessment was getting time barred. Thus, the assessee was constrained to file additional evidence during the first appellate proceedings. The opportunity was given to the AO to comment on the additional evidence filed, however, he chose to remain silent on merits of additional evidences. The CIT(A) after examining the documents, submissions of the assessee, also taking note of the remand report deleted the addition.