Lata Gupta Vs ITO (ITAT Delhi)
When Crucial Evidence Surfaces Late – ITAT Allows Rule 29 Application – ITAT Remands ₹2.38 Cr Addition for Fresh Examination
Assessment was completed on 27.12.2018 by adding Rs.2,38,50,000 as unexplained income from undisclosed sources. CIT(A) dismissed the appeal on 29.10.2019. In second appeal, Assessee moved an application u/s Rule 29 of ITAT Rules seeking admission of additional documents placed in the paper book. Assessee submitted that the amounts received from various entities were in connection with proposed property purchase & were subsequently returned, but supporting documents could not be procured earlier as they were in possession of third parties. After considerable effort, Assessee obtained relevant confirmations & supporting material.
Revenue opposed admission of additional evidence, arguing that the assessment & first appellate orders were correctly based on existing record. Tribunal, however, accepted that the documents were material to the real controversy, could not be gathered earlier despite due diligence, & were necessary for proper adjudication. Accordingly, Tribunal admitted the additional evidence & remanded the entire matter to AO for fresh examination in accordance with law. Assessee was granted liberty to file further supporting documents & AO was directed to provide adequate opportunity of being heard before passing the de-novo order.
