TaxTMI 
TaxTMI 
2024 (9) TMI 1096
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....e ld. counsel for the assessee drew our attention to an application under Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963 dated NIL filed for admission of additional evidence in connection with Ground No. 5, 6 and 7 of the Grounds of appeal. 3. The provisions contained in Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963, provides that the parties to the appeal shall not be entitled to produce additional evidence either oral or documentary before the Tribunal. The provisions contained in the said rule are pari materia with the Order 41 Rule 27 of the Code of Civil Procedure, 1908, which also does not allow the party to the appeal to adduce any additional evidence unless and until such exceptional circumstances are set o....
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.... Appellant humbly requests the Hon'ble Bench to kindly consider them in the interest of substantial justice." 5. The ld. counsel for the assessee placed strong reliance on the decisions of the following High Court cases: i) CIT v. Kum. Satya Setia, [1983] 15 Taxman 345 (MP) ii) Anaikar Trades &Estates (P). Ltd v. CIT, [1991] 56 Taxman 170 (Mad) iii) R.S.S. Shanmugam Pillai & Sons v . CIT, [1974] 95 ITR 109 (Mad.) iv) CIT Vs Text Hundred India Pvt Ltd 351 ITR 57 (Del) 6. The ld. counsel for the assessee argued that the segmental financial statement produced as additional evidence along with the present application is necessary and pertinent for adjudication of the issue of production of ordinary profits u/s 80-IA(10) of the Act....
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....ointed out that the decisions of Hon'ble Supreme Court (supra) relied on by the DR is actually in favour of the assessee as it permits the admission of additional evidence where the additional evidence have a direct bearing on pronouncing the judgement or for any other substantial cause. 10. The ld AR of the assessee also relied on the decision of the Hon'ble Jurisdictional High Court in the case of Text Hundred India Pvt Ltd 351 ITR 57(Del) for the proposition that it is the discretion of the Tribunal to admit evidence in the interest of justice once the Tribunal affirms the opinion that doing so would be necessary for proper adjudication of the matter. 11. The representatives of both the sides were heard at length, the case records ....
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....f considered opinion that the segmental financial statement will facilitate proper appreciation and comparison of the transactions entered into with ARBL and itself. 14. As regards to the admission of the additional evidence, it is fruitful to refer to the Hon'ble Madhya Pradesh High Court in the case of Commissioner of Income-tax v. Kum. Satya Setia, [1983] 15 Taxman 345 (MP) wherein it has been held as under: "The learned standing counsel for the revenue invited our attention to rule 29 of the Income- tax (Appellate Tribunal) Rules, 1963. This rule is in pari materia with Order XLI, rule 27, of the Code of Civil Procedure. It is within the discretion of the appellate authority to allow production of additional evidence if the said ....
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....1974] 95 ITR 109 (MAD.) similarly was held as under: "It is no doubt true that the Tribunal has got a discretion either to admit the documents as additional evidence or to reject the same at the stage of the appeal. But he said discretion cannot be exercised in an arbitrary manner. If the Tribunal finds that the documents filed are quite relevant for the purpose of deciding the issue before it, it would be well within its powers to admit the evidence, consider the same or remit the matter to the lower authorities for the purpose of finding out the genuineness of the letters and considering the relevancy of the same. But if the Tribunal finds that the evidence adduced at the stage of the appeal is not quite relevant or that it is not neces....