Income Tax Act, 1961

--Appeal [Commissioner (Appeals)]--Additional evidence Entertability--Commissioner (Appeals) required from assessing officer remand report and assessee was asked to file rejoinder in relation to additional evidence thereon. After consideration of entire material in this behalf. Commissioner (Appeals) had given his finding on the contents of additional evidence. Consideration of additional evidence by the Commissioner (Appeals) appears to be inbuilt in the order. Commissioner (Appeals) could not admit additional evidence. Held: Not justified. As assessee was prevented by sufficient cause for filing additional documents before assessing officer Commissioner (Appeals) ought to have admitted the same as additional evidence under rule 46A. More so, when he had technically admitted such additional evidence by commenting on merits thereof and comments of both lower authorities, i.e., assessing officer and Commissioner (Appeals) are, on records.

The assessee had already filed various documents in respect of identity, genuineness and creditworthiness of the shareholders. In Tribunal's considered view when the assessee is able to make out a case of insufficient time for complying with the requirement, the additional evidence is to be admitted as per the prescription of rule 46A. Besides, the remand was called by Commissioner (Appeals) from assessing officer and further assessee was asked to file the rejoinder thereon. After consideration of entire material in this behalf, the Commissioner (Appeals) has given findings on the contents of the additional evidence. All these circumstances lead to a conclusion that Commissioner (Appeals) considered the additional evidence and gave a finding on merits against assessee. Thus, the consideration of additional evidence by Commissioner (Appeals) appears to be in-built in the order. In any case to avoid any controversy in facts and circumstances of this case, assessee was prevented by sufficient cause in filing the additional documents before assessing officer and they should have been admitted by Commissioner (Appeals) as additional evidence under rule 46A. In view of these facts and circumstances, though the additional evidence has been technically admitted by Commissioner (Appeals) by commenting on the merits of the additional evidence, however, Tribunal accepts the plea of the counsel for the assessee that as a matter of abundant caution, the additional evidence be admitted, more so when the comments of both the lower authorities, i.e., assessing officer and Commissioner (Appeals) are on record. Thus, these grounds of the assessee in respect of admission of additional evidence are allowed. [Para 7]