2005 (10) TMI 27 - HC - Income Tax

Affidavit filed for the first time before tribunal seeking to produce the trust deed tribunal was right in law in rejecting the assessee s plea for admitting in evidence the trust deed because there were lots of discrepancies related to the matter

Summary

Issues:
1. Admissibility of trust deed dated 4th April 1977 as evidence.
2. Failure of the assessee to submit relevant documents and evidence.
3. Tribunal's discretion in admitting fresh evidence.

Issue 1: Admissibility of trust deed as evidence
The case involved a trust that filed returns seeking benefits under the Amnesty Scheme, but failed to provide the trust deed. The assessing officer and CIT (Appeals) noted the absence of the trust deed and questioned the genuineness of the trust. The Tribunal, upon the assessee's appeal, rejected the request to admit the trust deed dated 4th April 1977 as evidence, as it was filed for the first time before the Tribunal on 16/8/1993. The Tribunal considered the delay in producing the document and discrepancies in the information provided, leading to the rejection of the trust deed as evidence.

Issue 2: Failure to submit relevant documents
The assessing officer and CIT (Appeals) highlighted the lack of cooperation from the assessee in providing necessary details and evidence regarding the trust. Despite multiple opportunities, the assessee did not appear before the authorities or submit any explanation. The failure to produce the trust deed raised doubts about the existence and nature of the trust, affecting the eligibility for benefits under the Amnesty Scheme. The Tribunal noted the absence of evidence throughout the proceedings, emphasizing the importance of timely and complete submission of relevant documents.

Issue 3: Tribunal's discretion in admitting fresh evidence
The Tribunal exercised discretion in considering the request to admit the trust deed as fresh evidence. It assessed the timeline of events, including the delay in filing returns and producing the trust deed. The Tribunal found that no evidence had been presented before the assessing or appellate authorities, making it a case of introducing new evidence before the Tribunal. The Tribunal's decision to reject the trust deed as evidence was based on the lack of relevance, discrepancies in information, and the failure to provide the document earlier in the proceedings. The Tribunal's approach in placing the burden on the assessee to substantiate claims and the adherence to procedural rules under Rule 18 of the Appellate Tribunal Rules were considered in upholding the decision to deny the admission of the trust deed as evidence.

In conclusion, the High Court upheld the Tribunal's decision, ruling in favor of the revenue and against the assessee. The failure to submit the trust deed in a timely manner, along with discrepancies in information provided, led to the rejection of the trust deed as evidence. The judgment emphasized the importance of timely and complete submission of relevant documents and evidence in legal proceedings.