September 2010
S. 254 of the Income-tax Act, 1961 read with Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963 — Rule 29 of ITAT Rules permits Tribunal to admit additional evidence for any substantial cause and for said purpose there is no requirement therein th
By C. N. Vaze
Shailesh Kamdar
Jagdish T. Punjabi
Bhadresh Doshi
Chartered Accountants
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66 (2010) 37 SOT 202 (Chennai) (TM)
Mascon Global Ltd. v. ACIT
A.Y. : 2002-03. Dated : 26-8-2009
S. 254 of the Income-tax Act, 1961 read with Rule 29 of the
Income Tax (Appellate Tribunal) Rules, 1963 — Rule 29 of ITAT Rules permits
Tribunal to admit additional evidence for any substantial cause and for said
purpose there is no requirement therein that there should be a formal written
application before Tribunal for admission of additional evidence.
On appeal to the Tribunal, the assessee filed some additional
evidence in support of its claim. Although the Accountant Member accepted the
additional evidence, the Judicial Member objected that there was no formal
application u/r.29 of the ITAT Rules for admission of additional evidence.
The Third Member held that on going through the rule, no
requirement was found therein that there should be a formal written application
before the Tribunal for admission of the additional evidence.
The Tribunal noted as under :
(1) These are rules of procedure and in a fit case and
depending on the circumstances it would be open to the Tribunal to admit
additional evidence when it is produced in the Court and an oral application
is made.
(2) Rule 29 permits the Tribunal to admit the additional
evidence for any substantial cause. The intention behind the rule is that
substantial justice should be done and the interest of justice should be the
overriding consideration.
(3) Therefore, there was no error in the Accountant Member admitting the
additional evidence.
