Appellate admission of legal ground and additional evidence can justify remand when assessment records are insufficient for verification.

An additional ground challenging assessment validity for want of notice under section 143(2) may be raised at the appellate stage as a pure question of law. Where the assessment records are unavailable and the claim cannot be verified on the existing material, the issue requires examination by the Assessing Officer. Additional evidence may also be admitted if it goes to the root of the dispute, including the controversy over cash deposits, and is necessary for proper adjudication. In such circumstances, remand for fresh consideration is appropriate so the Assessing Officer can examine both the validity objection and the merits after giving the assessee a reasonable opportunity.

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Issues: Whether the additional ground challenging the validity of the assessment for want of notice under section 143(2) of the Income-tax Act, 1961 could be admitted, and whether the additional evidence filed by the assessee should be taken on record, resulting in remand of the matter for fresh adjudication.

Analysis: The objection regarding non-issuance of notice under section 143(2) was treated as a pure legal issue that could be raised at the appellate stage. Since the relevant assessment records were not available before the Tribunal and the veracity of the claim could not be verified on the existing record, the issue required examination by the Assessing Officer. The Tribunal also found that the additional evidence produced went to the root of the controversy concerning the cash deposits and was necessary for proper adjudication. In the interests of justice and equity, the evidence was admitted and the matter was restored to the Assessing Officer for reconsideration of both the validity issue and the additions on merits after affording reasonable opportunity to the assessee.

Conclusion: The additional ground and additional evidence were admitted, and the assessment was set aside for fresh consideration by the Assessing Officer.

Ratio Decidendi: A pure question of law and evidence going to the root of the dispute may be admitted at the appellate stage, and where the existing record is insufficient for verification, remand for de novo examination is warranted in the interests of justice.

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