SAMIR SHANTILAL DOSHI,MUMBAI, MAHARASHTRA vs. DEPUTY COMMISSIONER OF INCOME TAX, KAUTILYA BHAVAN, MUMBAI

At the very outset, we noticed that the assessee has filed an application for admission of additional evidence under Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963, contents of which are reproduced herein below:

On the other hand, the Ld. DR opposed the said application for admission of additional evidence.

After having heard the submissions of both the parties, we find that the additional evidences sought to be filed by the assessee are legal in nature and go to the root of the matter. Therefore, following the principles laid down by the Hon’ble Supreme Court in the case of NTPC Ltd. Vs. CIT, 229 ITR 383 (SC), and considering the facts and circumstances of the present case, we deem it appropriate to allow the application filed by the assessee for admission of additional evidence.

Since we have allowed the assessee’s application for admission of additional evidence, considering the facts and circumstances of the case, we are of the view that the matter requires to be restored back to the file of the Ld. CIT(A) for verification and consideration of the additional evidences filed by the assessee.

It is pertinent to mention that both the additions made by the Assessing Officer and sustained by the Ld. CIT(A) were based on specific findings that the assessee had failed to substantiate its claims and had not furnished relevant supporting evidences before the authorities below.

Be that as it may, without expressing any opinion on the merits of the issues raised by the assessee, we deem it appropriate to admit the additional evidences sought to be submitted by the assessee and restore the matter to the file of the Ld. CIT(A). The Ld. CIT(A) shall take into consideration the additional evidences so filed by the assessee and decide the matter afresh in accordance with law, after providing a reasonable opportunity of being heard to the assessee.

The assessee is also directed to extend full cooperation in the proceedings before the Ld. CIT(A), furnish the necessary information/documents as may be called for or advised, and ensure timely completion of the appellate proceedings.

The Ld. CIT(A) shall also be at liberty to call for a remand report from the Assessing Officer in respect of the additional evidences submitted by the assessee.

Before parting, we make it clear that our decision to restore the matter back to the file of the Ld. CIT(A) shall not be construed as expressing any opinion or having any bearing on the merits of the dispute. The issues involved shall be adjudicated by the Ld. CIT(A) independently, in accordance with law.