The Cuttack bench of the Income Tax Appellate Tribunal (ITAT) has held that additional evidence is allowed to be submitted before the court as those records were seized by lower authorities and later by CBI.
The unexplained investment was found in purchase of land at different places in locality but purchases of land were registered in the appellant’s name, For that non-disclosure of correct incentive on sales, additions were made. it was contended that the assessee furnished two cash books in the form of additional evidence for the assessment year 2012-13. Learned Council of Assessee have submitted that these additional evidences could not be produced before the AO as well as before the CIT(A) as the relevant papers and documents and books of account in respect of M/s. Anu Reebok Stores were seized by the department and thereafter same materials were seized by CBI. Therefore, the assessee was prevented by sufficient cause for not furnishing the above documents before the lower authorities, based on which, the additions were made. Learned council of Assessee have prayed that these additional evidences may be admitted and restored back to the file of the AO for fresh consideration considering the circumstances on which, these were not considered by the lower authorities.
Tribunal bench headed by Chandra Mohan Garg, Judicial Member, and Arun Khodpia, Accountant Member after hearing the rival submission and persuading the record of the case held that from the orders of lower authorities, it is clear that the additions/disallowance have been made for want of books of account as well as cash book of the assessee. We reproduce below Rule 29 of I.T.Rules:
“29. Production of additional evidence before the Tribunal.–The parties to the appeal shall not be entitled to produce additional evidence either oral or documentary before the Tribunal, but if the Tribunal requires any documents to be produced or any witness to be examined or any affidavit to be filed to enable it to pass orders or for any other substantial cause, or, if the income-tax authorities have decided the case without giving sufficient opportunity to the assessee to adduce evidence either on points specified by them or not specified by them, the Tribunal, for reasons to be recorded, may allow such document to be produced or witness to be examined or affidavit to be filed or may allow such evidence to be adduced.”Rule 29, Income Tax
Simultaneously, the assessee is directed to furnish required details such as cash book as submitted before Tribunal, and as other evidences required by AO to be submitted by assessee for fresh consideration of issue by AO. AO is directed to allow sufficient opportunity of being heard to assesse. In the result, appeals of the assessee are allowed.
KALANA SHUKLA vs. INCOME TAX OFFICER
ITA Nos. 158 & 159/CTK/2016
Decision in Favour of: AssesseeINCOME TAX APPELLATE TRIBUNAL, CUTTACK