SANJEEV DAYA KHOSLA,MUMBAI vs. INCOME TAX OFFICER, MUMBAI

At the outset we noticed, that the the assessee has filed an application seeking admission of additional evidence under Rule 29 of the Income-tax (Appellate Tribunal) Rules, 1963. The assessee has sought to place on record the following documents:

The assessee submitted that the aforesaid documents could not be produced before the lower authorities despite due diligence. It was submitted that the FIR was lodged on 18.04.2025 and that the relevant documents, including the FIR and bank statements, were not available at the relevant stage of the proceedings. The Ld. DR opposed the admission of the additional evidence.

We have considered the rival submissions and perused the material available on record. The documents sought to be admitted are relevant to the factual issues involved in the appeal, particularly the commencement of the project and the financial transactions between the assessee and the developer. Considering the nature and relevance of the additional evidence and the explanation furnished by the assessee for its non- production before the lower authorities, we are of the considered view that the same deserves to be admitted in the interest of justice.

Accordingly, the additional evidence is admitted under Rule 29 of the Income-tax (Appellate Tribunal) Rules, 1963. However, since the said evidence has not been examined and verified by the Assessing Officer, we deem it appropriate to restore the matter to the file of the Assessing Officer for factual verification and fresh adjudication.

The Assessing Officer shall examine and verify the additional evidence, including the genuineness and relevance of the FIR, allotment letters and bank statements, and shall examine the assessee's claim regarding commencement of the project in Financial Year 2014-15 with reference to the documentary evidence available on record. The Assessing Officer shall also correlate the payments made by the assessee and the amounts received from the developer with the relevant bank entries and other supporting documents.

Needless to state, the Assessing Officer shall provide the assessee a reasonable opportunity of being heard and, if any adverse material is proposed to be relied upon, the same shall be confronted to the assessee for its response. The assessee shall furnish all documents and explanations as may reasonably be called for by the Assessing Officer.

Before parting, we make it clear that our decision to restore the matter back to the file of AO shall in no way be construed as having any reflection or expression on the merits of the dispute which shall be adjudicated by AO independently in accordance with law.

In view of the above, the application for admission of additional evidence is allowed and the matter is restored to the file of the Assessing Officer for verification and fresh adjudication in accordance with law.

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