Smt. Ramanandi Anangpuria Charitable Trust Vs DCIT (Exemptions) (ITAT Chandigarh)
ITAT Chandigarh held that additional evidences filed by the assessee deserves to be admitted inspite of casual and callous approach of assessee since the ultimate object of adjudication is to do substantial justice. However, cost of Rs. 3,000/- imposed.
Facts- The assessee trust is registered u/s. 12AA since 2006 and also enjoys approval under section 80G. It filed its return of income declaring nil income. The case was selected for scrutiny and statutory notices under sections 143(2) and 142(1) were issued. According to AO, despite opportunities the assessee did not satisfactorily substantiate its claims. AO, therefore, proceeded to complete the assessment ex parte u/s. 144 and assessed total income at Rs.3,57,13,220/-.
CIT(A) confirmed the addition. Being aggrieved, the present appeal is filed.
Conclusion- Held that the assessee has moved an application for admission of additional evidence under Rule 29 of the Income-tax (Appellate Tribunal) Rules, 1963. It has been explained that the non-production of the said evidence before the lower authorities was on account of lack of proper advice. It is true that the assessee may not have been properly advised at the relevant time to place all the material evidence on record. However, it cannot be ignored that the assessee had partly produced documents before the Assessing Officer and the CIT(A), while the present set of documents was withheld and filed only before us. Such conduct reflects a casual and callous approach on the part of the assessee in the matter of compliance with statutory proceedings. At the same time, we are mindful that the ultimate object of adjudication is to do substantial justice. If relevant evidence having a material bearing on the determination of the issue is kept out of consideration, it may result in a miscarriage of justice. Therefore, balancing both aspects, we are of the considered opinion that the additional evidence now filed by the assessee deserves to be admitted, though not without conditions. Accordingly, we direct that the additional evidence filed by the assessee shall be admitted subject to the payment of cost of Rs.3,000/- to be deposited with the State Legal Services Authority, Haryana (High Court).
