Fresh evidence in tax appeal requires statutory safeguards; writ interference declined where appellate findings were supported by the record.

The Madras HC declined to interfere under Article 226 with the Tribunal's finding on alleged sale suppression. It held that the assessee's reliance on affidavits and the characterisation of slips as quotations were introduced only at the appellate stage, after the assessment notice and search. The statutory conditions for admitting fresh evidence in appeal, including recorded reasons, genuineness of the documents and explanation for earlier non-production beyond the dealer's control, were not shown to have been properly satisfied. The writ court therefore confined itself to the decision-making process and left the Tribunal's order undisturbed.

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Issues: Whether the Tribunal's order upholding the assessment for alleged sale suppression and rejecting reliance on affidavits produced at the appellate stage called for interference under Article 226 of the Constitution of India.

Analysis: The writ court confined itself to the decision-making process and found no infirmity in the Tribunal's conclusion. The assessee's attempt to rely on affidavits and treat the slips as quotations was made only at the appellate stage, long after the assessment notice and search. The statutory restriction on receiving fresh evidence in appeal required recorded reasons and satisfaction that the documents were genuine and that earlier non-production was beyond the dealer's control, which was not shown to have been properly satisfied.

Conclusion: The Tribunal's order was not interfered with, and the writ petition was dismissed.

Final Conclusion: The challenge to the assessment based on alleged quotations and additional affidavits failed, and the revenue's action was sustained.

Ratio Decidendi: In writ jurisdiction, interference is unwarranted where the appellate authority's factual conclusion is supported by the record and the statutory conditions for admitting fresh evidence have not been satisfied.

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