Additional evidence may be admitted and remand ordered where ex parte assessment denied a fair opportunity to present material.

Where assessment was completed ex parte and relevant material had not been considered earlier, additional evidence could be admitted to ensure adjudication on a proper factual basis. The Tribunal held that the documents should first be examined by the CIT(A), and the matter was restored for fresh decision after giving the assessee due opportunity of hearing.

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Issues: Whether the assessee's application for additional evidence deserved to be admitted and the matter restored for fresh adjudication in view of the ex parte assessment and claimed denial of opportunity.

Analysis: The assessee sought to place documents for the first time before the Tribunal, contending that the assessment had been completed ex parte and that the material had not been considered earlier. In the circumstances, the additional documents were considered fit to be examined by the first appellate authority so that the issue could be decided on a proper factual basis after giving the assessee an opportunity of hearing.

Conclusion: The application for additional evidence was allowed and the matter was restored to the file of the CIT(A) for fresh decision after considering the documents and affording due opportunity to the assessee.

Ratio Decidendi: Where relevant evidence could not be produced earlier and the assessment was made ex parte, the appellate authority may admit additional evidence and remand the matter to secure a decision on a complete record after due hearing.

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