TaxTMI 
TaxTMI 
2018 (5) TMI 2035
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....d return of income for impugned assessment year claiming deduction u/s. 80IB(10) of the Act in respect of its housing project "Bhagwati Palms", Thergaon, Pune. The Assessing Officer vide order dated 27.12.2011 accepted the claim of assessee. The Commissioner of Income Tax invoked the provisions of section 263 and issued notice on 17.02.2013 on the ground that Assessing Officer has failed to take note of the fact that the area of plot of land on which housing project has been developed is 4000 Sq. mt. that is less than minimum area of 1 acre as required under section 80IB (10) of the Act. The Commissioner of Income Tax set aside the assessment order and directed the Assessing Officer to disallow assessee's claim of deduction u/s.80IB (10) of....
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....n record any evidence whatsoever before the Authorities below indicating that the land of the assessee is more than 4046.87 Sq. Mt. i.e. equal to 1 acre. In fact, the assessee has admitted before the Commissioner of Income Tax and the Assessing Officer that area of plot of land on which housing project has been constructed is 4000 Sq. mt. 4.1 The ld. DR taking strong objection to the additional evidence filed by assessee submitted that no reason whatsoever has been given by the assessee, for not furnishing the certificate of Architect before the Authorities below. The ld. DR further asserted that no fresh evidence should be accepted in proceedings u/s. 263 of the Act. The ld. DR in support of his submission placed reliance on the decisio....
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.... this issue by furnishing additional evidence in proceedings before the Commissioner of Income Tax (Appeals) arising out of assessment order passed u/s. 143 r.w.s. 263 of the Act, if he does not raise the objection in proceedings u/s.263 itself. To support his contentions, the ld. AR placed reliance on the decision of Hon'ble Bombay High Court in the case of Herdillia Chemicals Ltd. Vs. Commissioner of Income Tax reported as 221 ITR 194 ( Bom.). The ld. AR further submitted that duty of the Assessing Officer is to assess correct income in the hands of assessee. Where the assessee has inadvertently offered more income to tax, the duty is cast upon the Assessing Officer to guide the assessee and assess correct tax liability. The ld. AR in....
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....the Authorities below. In so far as the power of the Tribunal to accept additional evidence in proceedings arising from section 263 is concerned; we are of considered view that there is no impediment, provided the assessee is able to show reasonable cause in not furnishing the documents before the Authorities below. Our view is supported by the decision of Hon'ble High Court of Himachal Pradesh in the case of Virbhadra Singh (HUF) Vs. Pr. CIT (supra.). In the said case, Revenue had placed additional material to support its case before the Tribunal. The Tribunal accepted the additional evidence and confirmed the order of Commissioner of Income Tax passed u/s. 263 of the Act. The assessee carried the matter in appeal before the Hon'bl....
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....f power by the Commissioner and would not relate to the amplitude of the power exercisable by the Tribunal "to pass such orders" "as it deems fit"." Thus, from the decision of Hon'ble High Court, it is amply clear that the Tribunal can accept additional evidence for proper adjudication of the case even in proceedings u/s. 263 of the Act. 8. We observe that the additional evidence filed by assessee in the form of certificate from an Architect indicating the area of plot of land by applying triangular method as more than 4046.87 Sq. Mt. was obtained by assessee on 03.09.2015 i.e. much after the passing of assessment order giving effect to the order of Commissioner of Income Tax u/s. 263 of the Act. Therefore, there was no occasion f....