2014 (6) TMI 1093 - HC - Income Tax

Appellate authority may admit additional evidence; Order 41 Rule 27 CPC applies; remand and deletion of surplus paragraphs upheld

Commissioner of Income Tax-II, Hyderabad Versus M/s. ICSA (India) Limited

HC held that the appellate authority has co-extensive power with the assessing officer to receive additional evidence at the appellate stage, and Order 41 ... Exemption u/s 10A claimed in the returns - supporting document could not be filed at the time of the assessment - whether at the appellate stage any document could be received by the appellate authority or not? - HELD THAT:- The appellate authority has co-extensive power with that of the AO and the principle of Order 41 Rule 27 of the Code of Civil Procedure for receiving additional evidence is to be applied indeed rightly applied. When a document was received and it was sent back for consideration to the authority below, it is a lawful exercise of power and there is no other issue. Appellant, wants to make it an issue with the aforesaid suggested question of law taking advantage of redundant recording of the Tribunal in paragraphs 5 and 6 of the impugned judgment. We are of the view that recording of the above paragraphs is surplasage and unnecessary. Therefore, those two paragraphs 5 and 6 of the impugned judgment are deemed to have been deleted as the core issue has been decided by the Tribunal. We accordingly affirm the impugned judgment. The assessee claimed exemption under Section 10A of the Income Tax Act for AY 2009-10 but initial supporting documents were not produced to the Assessing Officer, who disallowed the claim. On appeal the necessary certificate was produced; the appellate authority remanded the matter to the Assessing Officer with directions to examine the veracity of the certificate and grant exemption. The court held that the appellate authority possesses 'co-extensive power with that of the Assessing Officer' and correctly applied the principle of Order 41 Rule 27 CPC for receiving additional evidence. The court accepted that in a fit case a genuine and valid certificate may justify granting exemption. Two paragraphs of the Tribunal's judgment were described as 'surplusage' and 'are deemed to have been deleted,' but the core decision upholding the remand and allowance of appellate receipt of documents was affirmed. Appeal dismissed; no order as to costs.