Additional evidence rule prevents relief on expense disallowance when documents were not before the Assessing Officer and no remand report was obtained.

Additional evidence relied upon to delete an expense disallowance could not be accepted without following the prescribed procedure of confronting it to the Assessing Officer and, where required, obtaining a remand report. The invoices, ledger extracts, TDS details, bank statements and contract copies used by the first appellate authority were not before the Assessing Officer, and the assessee had not fully substantiated the expenditure at assessment stage. The deletion was therefore unsustainable, and the matter was remanded to the jurisdictional Assessing Officer for fresh verification and adjudication.

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Issues: Whether the disallowance of provision for expenses deleted by the first appellate authority was sustainable when the evidences relied upon were not before the Assessing Officer and no remand report was obtained.

Analysis: The dispute turned on a provision for expenses claimed to have been made against later-received invoices, while the Assessing Officer had treated the amount as contingent and unascertained. The appellate record showed that invoices, ledger extracts, TDS details, bank statements and contract copies relied upon for relief were not part of the material before the Assessing Officer. Such materials amounted to fresh evidence, and their admission without obtaining the Assessing Officer's comments contravened the procedure governing additional evidence. The assessee had also not fully substantiated the entire expenditure claimed before the Assessing Officer.

Conclusion: The deletion of the addition could not be sustained, and the matter was required to be set aside to the jurisdictional Assessing Officer for fresh verification and adjudication.

Final Conclusion: The dispute was remanded for fresh examination, with the revenue's appeal succeeding only for statistical purposes.

Ratio Decidendi: Additional evidence relied upon for granting relief to an assessee cannot be accepted without following the mandated procedure of confronting it to the Assessing Officer and obtaining a remand report where required.

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