2018 (6) TMI 1754 - AT - Income Tax

Admission of additional ground of appeal - CIT- A not granting sufficient opportunity and in rejecting the additional evidence filed before Hon'ble CIT(A) - HELD THAT - In interest of justice we are inclined to admit that the additional ground of appeal in the light of decision of Hon'ble Supreme Court in the case of National Thermal Company Ltd. vs. CIT 1996 (12) TMI 7 - SUPREME COURT wherein it was held that additional ground of appeal can be admitted where the issue involved is pure question of law not involving any investigation of facts. We are of the view that these additional evidences are necessary for proper appreciation of the issue under appeal and would cause of substantial justice. Such evidence may ultimately turn out to the benefit of either taxpayer or the Revenue. We admit the additional ground of appeal and additional evidence filed by the assessee and restored issue back to the file of AO to decide afresh. AO, is therefore, directed to decide the issue after examining additional evidence and any other evidence as may be filed by the assessee before him in support of his claim. AO may decide the issue after making such enquiries as necessary as deem fit and required further evidence as required in the interest of justice. Accordingly, entire assessment is set-aside to the file of the AO for denovo consideration after affording proper opportunity of being heard.

Summary

Issues involved:
1. Admission of additional ground of appeal and additional evidence for assessment year 2007-08.
2. Admission of additional evidence for assessment years 2008-09 and 2009-10.

Analysis:
1. Admission of additional ground of appeal and additional evidence for assessment year 2007-08:
- The assessee filed appeals against the orders of the Commissioner of Income Tax (Appeals) for assessment years 2007-08, 2008-09, and 2009-10. The assessee sought admission of additional ground of appeal due to the inability to attend the hearing before the Commissioner of Income Tax (Appeals) because of a family emergency. The Tribunal, considering the facts and legal precedents, admitted the additional ground of appeal. Citing relevant case laws, the Tribunal held that the issue involved was a pure question of law and allowed the additional evidence to be submitted. The Tribunal set aside the assessment and directed the Assessing Officer to decide the issue afresh after considering the additional evidence and any other evidence the assessee may provide.

2. Admission of additional evidence for assessment years 2008-09 and 2009-10:
- The appeals for these assessment years were also filed against ex-parte assessment orders. The assessee contended that due to family medical emergencies and the seizure of books of accounts by the Directorate of Revenue Intelligence (DRI), they were unable to respond to the assessment proceedings adequately. The Tribunal noted that the principles of natural justice were not followed as the assessee was not given proper hearing and the additional evidences were not admitted by the Commissioner of Income Tax (Appeals). Relying on legal principles and precedents, the Tribunal allowed the appeals for assessment years 2008-09 and 2009-10 for statistical purposes and restored them to the file of the Assessing Officer for a fresh assessment with proper opportunity of being heard.

In conclusion, the Tribunal allowed all three appeals for statistical purposes, emphasizing the importance of providing a fair opportunity for the assessee to present their case and evidence. The orders were pronounced on 05-06-2018.