Section 37 of Income Tax Act, 1961— In the instant case, appeal is filed by revenue against the orders of CIT(A).  The AO made the disallowances as the assessee had declared substantially high expenses in operating the toll plaza as compared to earlier year.

CIT(A) has admitted fresh evidence without confronting the same to the Assessing Officer, which is in contravention of Rule 46A of the I.T. Rules.
 
Held that— he Assessing Officer has not brought out anything on record to demonstrate that the expenses were not incurred for the purpose of business neither he has brought on record anything for the proposition that the expenses claimed were not supported with bills and vouchers. The learned CIT(A) has allowed relief to the assessee by recording his elaborate findings.

Therefore, the learned CIT(A) has not relied upon any additional evidence while giving relief to the assessee. [A.C.I.T RANGE-V, LUCKNOW. VERSUS M/S PREMIER CAR SALES LTD. AND (VICE-VERSA)] [2019] 17 ITCD Online (5) [ITAT LUCKNOW]