Additional Evidence before Commissioner of Income Tax (Appeals)

Background

The Commissioner of Income Tax (Appeals) [the CIT(A)] is a first appellate authority under the Income-tax Act, 1961 (‘the Act’) and has authority to hear and dispose the appeal filed by the assessee against the assessment order passed by the assessing officer.

The CIT(A) has wide power under the Act, among other things the CIT(A) has power to admit additional evidence during the course of appellate proceedings.

Meaning of Additional Evidence

The term additional evidence is not specifically defined under the Act. However, the Rule 46A of the Income-tax Rules, 1962, specifies that additional evidence means any evidence, whether oral or documentary, which is being produced before the CIT(A) for the first time and such evidences were not produced before the assessing officer during the course of assessment proceedings.

Legal Backing

As per section 250 (5) of the Act, the CIT(A) has power to allow the appellant to take any additional grounds of appeal, which was not previously taken by them, while filing the appeal before the CIT(A).

Further, as stated above the Rule 46A Income-tax Rules, 1962, empower the CIT(A) to admit the additional evidence.

Circumstances for filing Additional Evidences

As per the Rule 46(1) of Income-tax Rules, 1962, under the following circumstances the appellant is allowed to file the additional evidences;

• Where the assessing officer has refused to admit any evidence, which ought to have been admitted or
• Where appellant was prevented by the sufficient cause from producing the evidence called upon by the assessing officer or
• Where appellant was prevented by the sufficient cause from producing the evidence before the assessing officer, which is relevant to any ground of appeal or
• Where the assessing officer passed the assessment order without giving proper opportunity of being heard to the appellant.

Procedure involved in acceptance of Additional Evidence

Once the additional evidence application filed before the CIT(A), a copy of such will be sent to concerned assessing officer. Then such assessing officer has the following power as per Rule 46A (3) of Income Tax Rules, 1962;

• To examine the evidence or documents or cross examine the witness produced by the appellant
• To produce any evidence or document or any witness in rebuttal of the additional evidence produced by the appellant.

After cross-examination of additional evidence by the assessing officer, such assessing officer produce a report before the CIT(A) containing the observations made by them.

The CIT(A) after considering both additional evidence application by the appellant and assessing officer report on such additional evidence, decide as to whether to accept or reject the additional evidence.

Form of Additional Evidence

The Appellant may produce before the CIT(A) following type of additional evidences during the course of appellant proceedings;

• The appellant’s oral statement relevant to grounds of appeal
• Documentary evidence like bank statement, ledger extracts, balance confirmation letter etc.
• Producing of any witness

Format for Additional Evidence Application

There is no specific format specified under the Act, for submission of additional evidence. However, the appellant has to prepare the application appropriately which should contain prayer for acceptance additional evidence along with the justification for admission of such evidence as specified under Rule 46A(1) of the Income Tax Rules, 1962.

Conclusion

The important point to be kept in mind by the assessee is that the admission of additional evidence is left to the discretion of the CIT(A). Hence, the assessee has to submit all the evidences before the assessing officer during the course of assessment proceedings and represent the case effectively at assessment level.