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TMI Blog2015 (8) TMI 568X X X X Extracts X X X X X X X X Extracts X X X X ..... entitled to cross-examine him. The first is provided for under clause (a) and the second, under clause (b) of sub-rule (3). Independently, the Department can adduce its own oral or documentary evidence to contradict or rebut the additional evidence that was adduced by a party, for the first time, at the stage of appeal. The record in the instant case does not disclose that the Department has raised any objection whatever for the additional evidence that was produced by the respondent. On the other hand, arguments were advanced with reference to the additional evidence also and the Commissioner of Income- tax (Appeals) dealt with the same. In other words, the Commissioner of Income-tax (Appeals) took into account the additional evidence d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee under the Income-tax Act (for short the Act ). For the assessment year 1998-99, the respondent posted a loss of ₹ 66,32,239. The Assessing Officer passed an order dated March 29, 2001, disbelieving the version as to the loss and recording a finding to the effect that the respondent has an income of ₹ 79,50,262 and levied tax thereon. Aggrieved by that, the respondent filed an appeal before the Commissioner of Income-tax (Appeals)-IV, Hyderabad. In support of its contention, it placed some additional material/evidence before the Commissioner of Income-tax (Appeals). Taking the same into account, the Commissioner of Income-tax (Appeals) partly allowed the appeal and permitted certain deductions. The Department carried th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner, than on the merits of the matter. Under the Act, adjudication takes place, firstly, before the authority of the Department or quasi-judicial agency, which in turn is handled mostly by the officials of the Department, before the matter reaches High Court. Certain traits of ordinary adjudication by the courts, are stipulated for the departmental appeals also. It is important to note that an order of assessment is the outcome of an exercise undertaken by the Department and an aggrieved party, if at all, can be only the assessee. Obviously for this reason, no appeal is provided to the Commissioner of Income-tax (Appeals) against an order of assessment, at the instance of the Department. The principle that an appeal is continuation of the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tances, namely :- (a) Where the Assessing Officer has refused to admit evidence which ought to have been admitted ; or (b) Where the appellant was prevented by sufficient cause from producing the evidence which he was called upon to produce by the Assessing Officer ; or (c) Where the appellant was prevented by sufficient cause from producing before the Assessing Officer any evidence which is relevant to any ground of appeal ; or (d) Where the Assessing Officer has made the order appealed against without giving sufficient opportunity to the appellant to adduce evidence relevant to any ground of appeal. (2) No evidence shall be admitted under sub-rule (1) unless the Deputy Commissioner (Appeals) or, as the case may be, the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of the Commissioner of Income-tax (Appeals) as to the admissibility of the documents and no adversarial exercise needs to be undertaken at that stage. Once the document is admitted as additional evidence, for the first time at the stage of appeal, the Department is entitled to put forward its own contention or objection vis-a-vis the same. Here again, two aspects become relevant. If the additional evidence is in the form of any document, the Department shall be entitled to examine or to make its own scrutiny of the same. On the other hand, if the evidence is in the form of deposition of any witness, it shall be entitled to cross-examine him. The first is provided for under clause (a) and the second, under clause (b) of sub-rule (3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional evidence . At the cost of repetition, we observe that the admission of additional evidence is the prerogative of the Commissioner of Income-tax (Appeals) and that in turn is circumscribed by clauses (a) to (d) of rule 46A(1) of the Rules. Learned senior counsel is not able to point out as to which of the conditions have been violated in the process of adjudication by the Commissioner of Income-tax (Appeals). The Tribunal dealt with the contention in detail and did not find any merit in the plea of the appellant. In Modern Charitable Foundation's case (supra) relied upon by the learned counsel for the appellant, the Delhi High Court dealt with an objection raised by the Department about the receiving of additional evidence for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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