INCOME TAX ACT, 1961

Section 254(1)

Appeal (Tribunal) - Additional evidence - Admissibility - Assessee did not file evidences before AO despite various opportunities--Additional evidences filed before ITAT went to the root of matter

AO required assessee to file details inter alia including names and addresses of persons from whom sales/purchases were made and reasons for low Gross and Net Profit. Assessee did not produce proper books of account despite various opportunities granted by him but only produced copies of some bought notes and cash payment's slips which did not contain names or addresses. AO took view that transactions of the assessee could not be independently verified and purchase, sales and profits shown by assessee could not be relied upon. He, therefore, rejected books of accounts under section 145(3) and thereafter estimated income of assessee @ 2% of the sales which led to addition assessee proposed to file additional evidences before Tribunal. Revenue objected prayer of the assessee for admission of additional evidences. Various opportunities were granted to assessee by lower authorities but assessee could not produce the same. Held: Assessee prayed for filing of additional evidences which were in the nature of gate passes/weight slip/bought notes/purchase invoices/copy of accounts. As assessee could not lead required evidence before AO and additional evidences went to the root of matter, same were admitted and matter was restored to AO.

Supported by:CIT v. Text Hundred India Pvt. Ltd. (2011) 351 ITR 57 (Del) : 2011 TaxPub(DT) 835 (Del-HC).