ITAT Chennai: Appeals Allowed, Additional Evidence Admitted Improperly

The Appellate Tribunal ITAT Chennai allowed cross appeals filed by both the Revenue and the assessee, setting aside the Commissioner's orders. The Tribunal agreed with the Revenue's argument that additional evidence was improperly admitted without confronting the Assessing Officer, directing the matters to be sent back for re-adjudication. All appeals were allowed for statistical purposes, with the orders pronounced on 05/05/2011.

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Issues involved: Cross appeals filed by Revenue and assessee against orders of Commissioner of Income Tax(Appeals) regarding admission of additional evidence without confronting Assessing Officer.

Summary:
The Appellate Tribunal ITAT Chennai considered cross appeals filed by the Revenue and the assessee against the orders of the Commissioner of Income Tax(Appeals). The Revenue contended that the Commissioner violated Rule-46A of the Income Tax Rules, 1962 by admitting additional evidence without confronting it to the Assessing Officer. The Revenue requested the matters to be sent back to the Assessing Officer for re-adjudication after considering the additional evidence. The assessee, while having received partial relief from the Commissioner, agreed to the matters being restored back to the Assessing Officer for re-adjudication. The Tribunal, after considering the submissions and materials on record, agreed with the Revenue's contention and set aside the orders of the Commissioner in all the appeals, directing the matters to be restored back to the Assessing Officer for fresh consideration on all issues. Consequently, all appeals filed by both the Revenue and the assessee were allowed for statistical purposes. The order was pronounced in the presence of the parties on 05/05/2011.

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