Rule 46A compliance governs admission of additional evidence before appellate tax authorities and requires written reasons plus hearing opportunity.

Additional evidence before the Commissioner (Appeals) must satisfy Rule 46A of the Income Tax Rules, 1962: reasons for admission must be recorded in writing, and the Assessing Officer must be given a reasonable opportunity to examine and rebut it. Where documentary material was first produced at the appellate stage to support a capital-receipt claim, but the record showed no speaking order admitting the evidence and no such opportunity to the Assessing Officer, the appellate order could not be sustained. The matter was therefore set aside and remanded to the Commissioner (Appeals) for fresh decision in accordance with law.

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Issues: Whether the Commissioner (Appeals) was justified in admitting and relying upon additional evidence without recording reasons in writing and without affording the Assessing Officer a reasonable opportunity to examine it, and whether the appellate order was liable to be set aside and the matter remanded.

Analysis: The assessee produced documentary material for the first time before the Commissioner (Appeals) to support the claim that the receipt in question was capital in nature. The record did not show any speaking order admitting such evidence, nor was the Assessing Officer given an opportunity to verify or rebut it. Rule 46-A of the Income Tax Rules, 1962 requires that additional evidence can be admitted only in specified circumstances, with reasons recorded in writing, and the Assessing Officer must be allowed a reasonable opportunity to examine the evidence and produce rebuttal material. Since these mandatory requirements were not followed, the appellate order could not be sustained.

Conclusion: The admission and consideration of additional evidence was held to be contrary to Rule 46-A, and the matter was set aside and remanded to the Commissioner (Appeals) for fresh decision in accordance with law.

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