ITAT may accept additional evidence if same goes to the root of the matter and refer the matter back to A.O.

At the time of hearing, the ld.counsel for the assessee submits that the assessee has filed certain additional evidences i.e. vouchers relating to expenses, balances sheet for the period from 31.3.1999 to 31.3.2005 and bank statement of the assessee showing receipt of Rs.15,00,000/- from M/s Landline Builder Pvt.Ltd. vide sale agreement dated 23.3.1987 appearing at pages 100 to 215 of the assessee’s paper book. He further submits that the above additional evidence goes to the root of the matter, therefore, the same may be admitted and the issue may be set aside to the file of the AO to examine and decide the same afresh after due verification. On the other hand, the ld.DR while relying on the orders of the AO and the ld.CIT(A) submits that he has no objection, if the issue is set aside to the file of the AO for fresh adjudication

We have carefully considered the submissions of the rival parties and perused the material available on record. We find merit in the plea of the ld. Counsel for the assessee that the additional evidence furnished by the assessee at this stage goes to the root of the matter and hence, in the interests of justice, we admit the same. However, the above documents have not been examined by the AO or the ld. CIT(A), therefore, in the interests of justice, we consider it fair and reasonable that the matter should go back to the file of the AO and accordingly, we set aside the orders passed by the Revenue authorities on this account and send back the matter to the file of the AO to decide the same afresh in the light of our observations hereinabove and according to law after providing reasonable opportunity of being heard to the assessee. The ground taken by the assessee is, therefore, partly allowed for statistical purposes.

Full text of the Above Judgment is as follows

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