In ITA No.586/Hyd/2022-ITAT- Without affording any opportunity to the Assessing officer, CITA(A) cannot accept additional evidences: ITAT (Hyderabad)
Members R.K. Panda (Accountant) and Laliet Kumar (Judicial) [27-03-2023]

Read Order: Dy. C. I. T (International Taxation) – I v. Nandita Pathak Hyderabad

Chahat Varma

New Delhi, April 25, 2023: The Income Tax Appellate Tribunal (Hyderabad) has held that since the assessee had not filed the documentary evidence before the AO to explain the source of the investment in foreign immovable property as called for by the AO, therefore, the learned CIT (A) was duty bound to give an opportunity to the AO to verify the documents filed by the assessee during the course of appeal proceedings.

Facts in brief was that the assessee was an individual, employed with Amazon Development Centre (India) Pvt. Ltd. Her case was selected for limited scrutiny through CASS to verify ‘Large Investment in foreign assets-immovable property’. The assessee in her response had submitted that she jointly owns one house property in US with her spouse which was let out during the year. Since the investment towards the property was jointly made by her and her spouse in the ratio of 50:50, 50%, the house property income (after considering the possible deductions) has been accordingly offered for tax in India. Balance 50% of the house property income has been offered in the hands of her spouse. In appeal, CIT (A) on the basis of certain documents filed by the assessee evidencing the purchase of foreign asset in 2006, deleted the addition made by the AO.

The Tribunal was of the view that the CIT (A) without affording any opportunity to the AO, could not have accepted the additional evidences filed by the assessee and deleted the addition, and there was a clear violation of the provisions of Rule 46A (3) of the Income Tax Rules.