Additional evidence in appellate proceedings can be admitted to secure proper adjudication and substantial justice, with verification before fresh decision.

Additional evidence may be admitted in appellate proceedings where it is necessary for proper adjudication and to do substantial justice, especially if the existing record is insufficient to decide the dispute satisfactorily. Here, documents supporting the assessee's claim on plot-transfer cost were produced for the first time before the Tribunal, so their genuineness required verification. The matter was therefore restored for fresh examination, including scrutiny of original records and supporting material, so the claim could be decided de novo after the assessee was given an opportunity to substantiate it.

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Issues: Whether additional evidence was admissible under Rule 29 of the Income-tax (Appellate Tribunal) Rules, 1963 and whether the matter should be restored to the Assessing Officer for fresh adjudication.

Analysis: The assessee produced additional documents to support the claim relating to the cost claimed in relation to the transfer of the plot. The Tribunal held that additional evidence may be admitted when it is necessary for proper adjudication and to do substantial justice, particularly where the material may have a direct bearing on the issue and the existing record is insufficient for a satisfactory decision. As the documents were being produced for the first time before the Tribunal, the Tribunal considered it appropriate to permit verification of their genuineness and directed further enquiry, including examination of the original records and related supporting evidence.

Conclusion: The additional evidence was admitted and the issue was restored to the Assessing Officer for fresh decision after verification.

Final Conclusion: The appeal was disposed of by remanding the disputed issue for de novo consideration, with the assessee being given an opportunity to substantiate the claim through the additional material.

Ratio Decidendi: Additional evidence may be admitted in appellate proceedings when its consideration is necessary to do substantial justice and to enable a proper adjudication of the dispute.

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