Long-term capital gain addition remanded for fresh adjudication due to unexamined additional evidence and disputed acquisition facts.

Addition on account of long-term capital gain could not be deleted without proper consideration of the assessee's additional evidence, as the record did not show lawful admission and examination of that material. The assessee had not produced the original sale agreement before the Assessing Officer and had not disclosed the capital gain in the return or revised return. Given the factual about the date of acquisition, possession, cost of acquisition and indexed cost of improvement, and in view of the first appellate authority's coterminous powers, the matter required re-examination on a proper evidentiary footing. The issue was remitted to the Assessing Officer for de novo adjudication after reasonable opportunity of hearing.

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Issues: Whether the addition on account of long-term capital gain could be deleted by the first appellate authority without proper consideration of the assessee's additional evidence and whether the matter required fresh adjudication by the Assessing Officer.

Analysis: The assessee had not produced the original sale agreement before the Assessing Officer and had also not disclosed the capital gain in the return or revised return. The appellate authority had deleted the addition on the basis of material placed before it, but the record did not show that the additional evidence was admitted and examined in the manner required by law. In such circumstances, and keeping in view the appellate authority's coterminous powers, the factual controversy regarding the date of acquisition, possession, cost of acquisition, and indexed cost of improvement required re-examination on a proper evidentiary footing.

Conclusion: The issue was remitted to the Assessing Officer for de novo adjudication after giving reasonable opportunity of hearing to the assessee.

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