Rejection of Additional Evidence without Examination is Violation of Principles of Natural Justice: ITAT
Mariya Paliwala
8 March 2022 3:18 PM IST
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has ruled that rejection of additional evidence without examination is a violation of principles of natural justice.The two-member bench of B.R.R.Kumar (Accountant Member) and Saktijit Dey (Judicial Member) has restored the issue to the file of Commissioner (Appeals) for de-novo adjudication after considering the additional...
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has ruled that rejection of additional evidence without examination is a violation of principles of natural justice.
The two-member bench of B.R.R.Kumar (Accountant Member) and Saktijit Dey (Judicial Member) has restored the issue to the file of Commissioner (Appeals) for de-novo adjudication after considering the additional evidences filed by the assessee and the remand report of the Assessing Officer.
The tribunal has directed the Commissioner (Appeals) to dispose of the appeal only after providing a fair opportunity of being heard to the assessee.
The appellant/assessee, a resident individual has filed his return of income declaring income. While completing the assessment under section 143(3) of the Income-tax Act, 1961, the Assessing Officer made a number of additions which enhanced the income. Against the assessment order so passed, the assessee preferred an appeal before Commissioner (Appeals).
Counsel for the assessee submitted, in the course of hearing before first appellate authority, the assessee has furnished a number of additional evidences to establish his claim against the additions made by the Assessing Officer.
It was further submitted that the predecessor first appellate authority had admitted the evidence and called for a remand report from the Assessing officer, however, the successor in office, without waiting for the remand report, sustained the additions made after rejecting the additional evidence furnished by the assessee. Thus, there was a clear violation of rules of natural justice.
The ITAT found that as against the meagre income offered by the assessee, the Assessing Officer has made huge additions which has enhanced the income to Rs. 2.78 crores. Therefore, the assessee needs a fair opportunity to establish its case with supporting evidence while contesting the additions.
Case Title: Sh. Sanjeev Kumar Singh Versus ITO
Citation: ITA No.7181/Del/2017
Counsel For Appellant: Advocate Gagan Kumar
Counsel For Respondent: Senior Departmental Representative Umesh Takyar
