Additional evidence in trade tax appeal must be admitted when due diligence and materiality are shown, with fair discretion applied.

Additional evidence may be admitted in second appeal where the assessee shows that, despite due diligence, the document could not be produced earlier and files a credible explanation supported by affidavit. The Tribunal must exercise its discretion to admit or reject such material fairly, justly and reasonably, especially where the document is material to the appellate claim. On these facts, the explanation for late production of form III-C(Ga) was unrebutted, so refusal to admit it was unjustified. The revisional challenge succeeded and the matter was sent back for fresh decision after admitting the form and allowing rebuttal evidence.

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Issues: Whether the Tribunal was justified in refusing to admit form III-C(Ga) as additional evidence at the second appellate stage under Section 12-B of the U.P. Trade Tax Act, 1948.

Analysis: Section 12-B permits additional evidence where the assessee could not, despite due diligence, produce it before the assessing authority. The assessee explained that the form was not available earlier and was filed as soon as it was received, supported by an affidavit. That explanation was not rebutted by the revenue. The discretion to admit or reject additional evidence had to be exercised fairly, justly and reasonably, and the form was material to the claim raised in appeal. In these circumstances, refusal to admit the document was held to be unjustified.

Conclusion: The Tribunal ought to have admitted the form III-C(Ga) as additional evidence. The assessee's revision succeeded and the matter was remitted for fresh decision after admitting the document and allowing rebuttal evidence.

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