Additional evidence under Rule 29 may be admitted for a just decision, with remand for fresh assessment.

Additional evidence may be admitted under Rule 29 of the ITAT Rules where it is relevant and necessary for a just decision, even if the assessee's explanation for earlier non-production is unsatisfactory. In this matter, the disputed share investment addition under section 69 was based on materials available after the assessee failed to produce supporting documents before the lower authorities. The Tribunal balanced the need for fair adjudication against the failure to file evidence earlier, admitted the fresh material subject to costs, and remanded the assessment to the Assessing Officer for reconsideration de novo without being influenced by prior observations.

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Issues: Whether additional evidence could be admitted under Rule 29 of the Income-tax (Appellate Tribunal) Rules, 1963 and, if so, whether the matter required remand for fresh assessment.

Analysis: The disputed addition was made as unexplained investment in shares under section 69 of the Income-tax Act, 1961 on the basis of material available, after the assessee had not produced supporting documents before the lower authorities despite notices under section 142(1) and assessment under sections 143(3) and 144. The Tribunal found the proffered additional evidence to be relevant and essential for a proper and just decision, but also found the explanation for its earlier non-production unsatisfactory. To balance these considerations, the Tribunal admitted the additional evidence subject to payment of costs and directed that the assessment be reconsidered afresh by the Assessing Officer without being influenced by prior observations.

Conclusion: The additional evidence was admitted subject to costs, and the matter was remanded to the Assessing Officer for fresh decision-making.

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