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TMI Blog2025 (4) TMI 666X X X X Extracts X X X X X X X X Extracts X X X X ..... or admission of additional evidence filed by the appellant under Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963, by recording a finding which is perverse to the record?" 2. In order to answer the aforesaid question of law, following facts are required to be noticed:- 3. On 03.12.2019 the Assessing Officer passed an order of assessment and held that the sum of Rs. 25,00,000/- deposited by the appellant on 12.11.2016 is unexplained money under the provisions of Section 69 A of the IT Act and made an addition to the said amount back to the total income of the assessee. Feeling aggrieved against the order of assessment, the appellant herein preferred an appeal before the Commissioner of Income Tax (Appeals) on 30.12.2019 whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... behalf of Mr. Amit Chaudhari, learned Standing Counsel for the Income Tax Department, would support the order impugned and prays to dismiss the appeal. 6. We have heard learned counsel for the parties and considered their rival submissions and also went through the record with utmost circumspection. 7. Substantial question of law formulated by this Court relates to rejection of application under Rule 29 of the ITAT Rules i.e. admission of additional documents which has been rejected by the ITAT by the impugned order. 8. The ITAT Rules have been framed in exercise of the powers conferred by sub-section (5) of Section 255 of the IT Act. Rule 29 of the ITAT Rules states as under: - "Production of additional evidence before the Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch states as under: - "27. Production of additional evidence in Appellate Court.- (1) The parties to an appeal shall not be entitled to produce additional evidence, whether oral or documentary, in the Appellate Court. But if- (a) xxxxxxxxx (aa) xxxxxxxxx (b) the Appellate Court requires any document to be produced or any witness to be examined to enable it to pronounce judgment, or for any other substantial cause, the Appellate Court may allow such evidence or document to be produced or witness to be examined. (2) Whenever additional evidence is allowed to be produced by an Appellate Court, the Court shall record the reason for its admission." 11. Order 41 Rule 27 (b) of the CPC states that additional evidence can be admitted w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ell settled that the admissibility of additional evidence in appeal under the provisions of Order 41, rule 27, of the Civil Procedure Code is made to depend not upon the relevancy or materiality to the issue before the court of the evidence sought to be admitted or upon the fact whether or not the applicant had sufficient opportunity of adducing the evidence at an earlier stage, but upon whether or not the appellate court requires the evidence to enable it to pronounce judgment or for any other substantial cause. The admission of additional evidence at the appellate stage is not referable to any right of the party to produce the evidence but is dependent solely on the requirement of the court and it is for the court to decide whether for pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that the general principle is that "the appellate court should not travel outside the record of the lower court and cannot take any evidence in appeal. However, as an exception, Order 41 Rule 27 CPC enables the appellate court to take additional evidence in exceptional circumstances. The appellate court may permit additional evidence only and only if the conditions laid down in this Rule are found to exist. The parties are not entitled, as of right, to the admission of such evidence. Thus, the provision does not apply, when on the basis of the evidence on record, the appellate court can pronounce a satisfactory judgment. The matter is entirely within the discretion of the court and is to be used sparingly. Such a discretion is only a j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 37. The appellate court should not ordinarily allow new evidence to be adduced in order to enable a party to raise a new point in appeal. Similarly, where a party on whom the onus of proving a certain point lies fails to discharge the onus, he is not entitled to a fresh opportunity to produce evidence, as the court can, in such a case, pronounce judgment against him and does not require any additional evidence to enable it to pronounce judgment. (Vide Haji Mohammed Ishaq v. Mohd. Iqbal and Mohd. Ali & Co. (1978) 2 SCC 493.) *** 40. The inadvertence of the party or his inability to understand the legal issues involved or the wrong advice of a pleader or the negligence of a pleader or that the party did not realise the importance of a d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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