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In line with the submissions of the Learned Departmental Representative, the issues in this appeal must be restored to the file of AO for re-adjudication after granting the assessee adequate opportunity to substantiate his case .

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Sec. 46A of Income Tax Act, 1961— Appeal—Rule 29 of Tribunal Rules, 1963 - Appeal - The assessee admitted that he was not able to produce the requisite evidences on account of financial hardships that were being faced by the assessee’s company, which admittedly had forced the assessee to take the loan in question. The assessee produced the confirmation letters from the two persons also. The file also contains an order from the NCLT, Chennai against M/s. Peekay Mediequip Limited, under s. 7 r/w r. 4 of the Insolvency and Bankruptcy Code, 2016, vide order dt. 13th Aug., 2019. The said evidences clearly show that the company, in which the assessee is a Managing Director, is actually in financial difficulties. When the very source of income of assessee is in trouble, the assessee would first try to protect his source of income. Tribunal opined that the reasons given by the assessee under r. 29 of Tribunal Rules, is substantiated and the assessee was prevented by sufficient cause in not producing the evidences in time either before the AO/CIT(A). Therefore, ITAT restored the matter before AO for re-adjudication after granting the assessee adequate opportunity to substantiate his case. Appeal of the assessee allowed partly.—G. SHANKAR vs. Deputy CIT.[2020] 26 ITCD Online 049 (ITAT-CHENNAI)