2009 (9) TMI 20

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....he Assessing Officer in disregard to the provisions of sub-rule 3 of Rule 46A of Income Tax Rules, 1962 wherein it has specifically been provided that CIT(A) could not accept such evidence unless the Assessing Officer has been given reasonable opportunity to examine the evidence so produced? 2. Whether on the facts and in the circumstances of the case the Hon'ble Tribunal has misconstrued the material on records? Briefly stated, the facts of the case are that for the assessment year 1996-97, the respondent (hereinafter referred to as the assessee) submitted a return showing loss of Rs.19,16,720/-, This return was filed on 27.11.1996. Thereafter, the Assessing Officer issued notices to the respondent under Sections 142(1) and 143(2) of....

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....peal. Before the ITAT the main ground urged on behalf of the revenue was that even if evidence was to be permitted to be adduced by the assessee at the appellate stage, the Assessing Officer should have been given an opportunity to verify/rebut the evidence. This submission of the revenue was rejected by the ITAT on the ground that Rule 46A (4) does not warrant giving of any opportunity to the Assessing Officer. It also held that the power to admit additional evidence under Section 250 could not be circumscribed by the rules.  We have heard Mrs. Vandana Kuthiala, for the revenue and Mr. K.D. Sood, for the assessee. To appreciate the rival contentions of the parties, it would be apposite to refer to Section 250(4) of the Income Ta....

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....e Assessing Officer to make such an inquiry. This provision in the Act vests the appellate authority with the power to make further inquiry which would in our opinion include the power to admit further evidence. The procedure and the manner in which such evidence is to be produced is laid down in Rule 46 A. Rule 46A(1) lays down the grounds on which the appellate authority can allow additional evidence. Sub rule-2 provides that the appellate authority while admitting such evidence must record its reasoning in writing. Sub rule, which has been quoted hereinabove, provides that no evidence produced under sub rule (1) shall be taken into account unless the Assessing Officer has been given a reasonable opportunity of examining the evidenc....