Additional evidences having crucial bearing should not be rejected on technicalities

Karam Singh Vs ITO (ITAT Delhi)

Assessing Officer made the addition alleging that the assessee did not furnish the required information to prove the loan transaction. However, it is observed, before the first appellate authority, the assessee produced additional evidences, such as, the bank statements of lenders, copy of Income Tax Return etc. to prove the genuineness of loan transaction. However, learned Commissioner (Appeals) refused to admit the additional evidences. In case, the assessee for some reasons was unable to furnish the evidences to prove the loan transaction before the Assessing Officer and produced the requisite documents by way of additional evidence before learned Commissioner (Appeals), they should not have been rejected, merely because, the Assessing Officer in the remand report observed that such evidences should not be admitted. There can be various factors which could have prevented the assessee from furnishing the requisite documents before the Assessing Officer. However, if the assessee files such documents before learned Commissioner (Appeals), they should not be rejected on technicalities, considering the fact that such evidences may have a crucial bearing in deciding the issue. In view of the aforesaid, I am inclined to restore this issue to the file of the Assessing Officer for fresh adjudication, after considering the evidences filed by the assessee. Needless to mention, the Assessing Officer must provide reasonable opportunity of being heard to the assessee before deciding the issue.

FULL TEXT OF THE ORDER OF ITAT DELHI

This is an appeal by the assessee against order dated 05.02.2019 of learned Commissioner of Income-tax (Appeals)-15, Delhi for the assessment year 2013-14.

2. In ground no. 2, the assessee has challenged disallowance of Rs.27,26,550/-, being deduction claimed under section 36(1)(ii) of the Income-tax Act, 1961 (in short ‘the Act’) for bonus paid to employees and workers.

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