2006 (12) TMI 71

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....of the case, the Tribunal was justified and correct in law in upholding the order of the first appellate authority deleting the entire addition of Rs. 52,72,050 on account of the alleged purchase of MS scraps ?" 2 The respondent-assessee claimed a loss of Rs. 15,79,047 in the return of income filed for the assessment year 1992-93. The Assessing Officer by the assessment order dated November 25, 1994, disallowed purchases of raw materials in respect of nine parties amounting to Rs. 52,72,050 for the alleged failure of the assessee to furnish purchase details in exercise of powers under section 143(3). The assessee preferred an appeal before the Commissioner of Income-tax (Appeals) and furnished separate sheets reflecting accounts position....

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....terials including MS scraps before the Commissioner of Income-tax (Appeals) which were not produced before the Assessing Officer. The authorized representative contended before the learned Tribunal that the documents could not be produced before the Assessing Officer as the wife of the assessee was involved in a serious accident at Mumbai. The learned Tribunal noticed that the payments were made through cheques and all the transactions are recorded in the books of account. The Tribunal also observed that the assessee's case is covered by the Central Excise Rules and the excise authority did not find any irregularity in the books of account. The Tribunal further observed that the books of account were produced before the Assessing Officer an....

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....it additional evidence which he may think necessary for facilitating further enquiry. The powers of the Commissioner (Appeals) are undoubtedly very wide. Even otherwise, the powers of a statutory appellate authority are co-terminus with the powers of the authorities at the first instance. There cannot be any dispute to this principle of law. 8 Rule 46A provides for production of additional evidence before the Deputy Commissioner and Commissioner (Appeals). It would appear from clauses (b) and (c) of sub-rule (1) of rule 46A that the appellate authority is empowered to allow the assessee to produce additional evidence where the assessee was prevented by sufficient cause from producing the evidence. In the instant case, the assessee had su....