JAYA PARMANAND PATEL,MUMBAI vs. DY. CIT. CENTRAL CIRCLE, MUMBAI

During the course of hearing before me, the assessee has filed an application seeking admission of additional evidence. In support thereof, the assessee has also filed an affidavit explaining the circumstances on account of which the relevant documents could not be produced before the learned CIT(A).

I have carefully considered the application for admission of additional evidence, the affidavit filed by the assessee and the material available on record. From the affidavit, it has been stated that the assessee did not have effective access to certain accounts, bank statements and other records of Vama Apparels India Private Limited for a considerable period of time on account of family disputes. It has further been stated that the assessee had made efforts to obtain the relevant records during the pendency of the proceedings before the learned CIT(A), and that adjournments were also sought for the purpose of collecting and placing the relevant documents on record. However, the appeal came to be disposed of ex- parte before the requisite documents could be collected and furnished.

The assessee has now placed on record additional documents contained in the paper book, including the documents at pages 1 to 79. It has been specifically submitted that certain documents, particularly those at pages 22 to 64, were either not available with the assessee at the relevant point of time or could be procured only subsequently. The assessee has also stated that the bank statements of Vama Apparels India Private Limited and the confirmation letter, relevant to the issue concerning credit card expenses, were not available during the assessment and appellate proceedings. Further, in respect of the addition of Rs. 1,98,487/-, the assessee has stated that relevant information and confirmation from the Italian Consulate have subsequently been procured.

In my considered view, the explanation furnished by the assessee cannot be brushed aside, particularly when the appeal before the learned CIT(A) came to be disposed of ex-parte. The documents sought to be admitted are stated to be directly relevant to the issues arising in the appeal and, if found to be genuine and otherwise admissible, may have a material bearing on the determination of the issues on merits.

In the present case, the additional evidence sought to be placed on record is stated to be relevant and material for deciding the issues arising in the appeal. At the same time, the correctness, genuineness, relevance and evidentiary value of the documents now produced require factual examination by the lower appellate authority. Since such factual verification has not taken place, in my considered opinion, the ends of justice would be adequately met by admitting the additional evidence and restoring the matter to the file of the learned CIT(A) for examination and fresh adjudication.

Accordingly, having regard to the totality of the facts and circumstances of the case, I admit the additional evidence filed by the assessee, including the documents contained at pages 1 to 79 of the paper book, subject to their verification and examination by the learned CIT(A).

Therefore, considering the overall circumstances of the present case, I deem it appropriate to restore the matter to the file of the learned CIT(A) for deciding the same afresh, after providing adequate opportunity of being heard to the assessee, subject to a cost of Rs. 5,000/- imposed upon the assessee. The said amount shall be deposited in the Prime Minister’s National Relief Fund, and a copy of the receipt thereof shall be placed on record before the learned CIT(A) within 30 days from the date of receipt of this order.

The learned CIT(A) shall examine the aforesaid documents and verify the same from the original/source records, as well as from such other material as may be considered necessary for the proper adjudication of the issues involved.

The learned CIT(A) shall thereafter adjudicate the appeal afresh on merits, in accordance with law, after affording reasonable and effective opportunity of being heard to the assessee. The learned CIT(A) shall also be at liberty, wherever considered necessary, to call for a remand report from the Assessing Officer in respect of the additional evidence and the claims made by the assessee. Needless 3 to state, the assessee shall cooperate in the remand proceedings and shall furnish such further clarification, supporting material or evidence as may be called for by the Assessing Officer or the learned CIT(A).

Since the assessee was not effectively heard before the Assessing Officer and the appeal before the learned CIT(A) was also disposed of ex-parte, I consider it appropriate, in the interest of natural justice, that the issues be examined afresh on their merits after considering the additional evidence admitted herein. Accordingly, the grounds raised by the assessee are treated as allowed for statistical purposes.

Before parting, I want to make it clear that my decision to restore the matter back to the file of Ld. CIT(A) shall in no way be construed as having any reflection or expression on the merits of the dispute which shall be adjudicated by Ld. CIT(A) independently in accordance with law.

In the result, the appeal of the assessee is allowed for statistical purposes.