2012 (5) TMI 788 - AT - Income Tax

Summary

Issues involved: Appeal against disallowance of expenditure, admission of additional evidences, remand to Assessing Officer for fresh adjudication.

Disallowance of Expenditure:
The assessee appealed against the order confirming the disallowance of Rs. 25 lakhs as per the assessment order and interest u/s 234B & 234 D of the IT Act. The Assessing Officer found the expenditure not genuine due to lack of supporting documents. The Commissioner of Income Tax (Appeals) upheld the disallowance. The assessee submitted various documents to support the genuineness of the expenditure, including notesheets and orders. The Tribunal considered these documents, which were part of government records, crucial for determining the genuineness of the expenditure. The Tribunal admitted the additional evidences and remanded the appeal back to the Assessing Officer for fresh adjudication, ensuring the assessee is given a fair opportunity to substantiate its claim.

Admission of Additional Evidences:
During the appeal hearing, the assessee requested the admission of additional evidences, explaining that these documents were crucial for the case and had not been presented before the Assessing Officer previously. The documents included minutes of a Board Meeting, notesheets of discussions with the Chief Minister, and an order of the Collector. The Tribunal, after considering the submissions from both sides, decided to admit the additional evidences in the interest of justice. However, since these documents were not available to the Assessing Officer earlier, the appeal was remanded back to the Assessing Officer for fresh adjudication, with the assessee granted the opportunity to provide further evidence if needed.

Conclusion:
The Tribunal allowed the appeal of the assessee for statistical purposes only, emphasizing the importance of providing a fair opportunity for the assessee to present evidence and substantiate its claim. The order was pronounced in the open court in the presence of representatives from both sides at the conclusion of the hearing on 22.5.2012.