9911796707
TMI Blog1973 (7) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... tayed in India during the period April 1, 1959, to September 23, 1959, an during the accounting year ending March 31, 1961. during the period October 7, 1960, to January 28, 1961. The assessee-firm filed its return of income for the previous years ending March 31, 1960, and March 31, 1961, in the status of a "non-resident". The Income-tax Officer examined the partner, Patchimuthu Pillai, on November 19, 1963, and he gave a statement to the effect that the other partner used to write letters consulting him regarding the management of the business. On the strength of this statement the Income-tax Officer held that the control and management of the firm's business was not wholly outside India during the relevant period and that, therefore, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the appellate authority and that, therefore, the same cannot be received as additional evidence at that stage. But the Tribunal had gone into the correspondence filed by the assessee and took the view that the correspondence was sufficient to prove that Patchimuthu Pillai was keeping himself in close touch with the day-to-day affairs of the firm and that he had not left the entire management and control of the business in the hands of the other partner. Thus the Tribunal took the correspondence produced by the assessee as supporting the partner's statement given before the Income-tax Officer on November 19, 1963, that the other partner used to consult him while in India regarding management of the business and as establishing the fact t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 4A(b) of the Indian Income-tax Act, 1922, for the assessment years 1960-61 and 1961-62?" The Income-tax Officer proceeded on the basis of the statement given by the assessee on November 19, 1963, before him. An affidavit was filed from the same partner, Patchimuthu Pillai, to explain the statement given by him at the earlier stage. Before the Tribunal the assessee-firm sought to produce the copies of certain letters received by Patchimuthu Pillai from the other partner in Ceylon for the purpose of proving that the partner in Ceylon did not consult him in the matter of control and management of the firm's business. The Tribunal did not receive them as evidence at the stage of the appeal on the ground that the letters had not been p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 necessary for the proper disposal of the appeal before it, in that case, the Tribunal could straightaway reject the evidence, which was sought to be produced for the first time at the stage of the appeal. In this case the Tribunal adopted a somewhat curious procedure. Having held that the letters cannot be admitted and acted upon at the stage of the appeal it chose to go through them and take a prima facie view that they are against the assessee. This way of dealing with the evidence adduced at the appellate stage has put the assessee to a considerable disadvantage. If t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax Officer was the statement given by Patchimuthu Pillai, one of the partners. The said statement was sought to be explained by an affidavit from him before the Appellate Assistant Commissioner. Except these, there are no other material to indicate that the control and management of the firm's business partly resided in the taxable territories. Therefore, the entire correspondence between the two partners during the relevant assessment years would be of considerable value in deciding the question at issue. The disposal of the appeal by the Tribunal after rejecting relevant evidence is not proper and, in the interests of justice, the matter has to be re-heard, after considering the genuineness and relevancy of the correspondence filed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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