As per Rule 46A of IT power of CIT to admit additional evidence not only in situation where not produced to lower authority due to lack of opportunity but also in fresh case to dis

Last updated: 12 March 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
We have heard both the parties and gone through the facts of the case. Indisputably, the ld. CIT(A) considered additional material in relation to two comparables and that of the assessee, which was not available before the TPO/AO. Apparently, the ld. CIT(A) did not follow the procedure laid down under Rule 46A of the IT Rules,1962 nor allowed any opportunity to the AO. The powers of the CIT(A) to admit additional evidence are not only in situations where the evidence could not be produced before lower authorities owing to lack of adequate opportunity but also in situations where the fresh evidence would enable the CIT(A) to dispose of the appeal or for any other substantial cause. Of course, the power is to be exercised judiciously and for reasons to be recorded. Moreover, the rules of natural justice are not codified nor are they unvarying in all situations, rather they are flexible. They may, however, be summarized in one word: fairness. In other words, what they require is fairness by the authority concerned

Citation :
A.C. I .T. ,Circle 10(1),New Delhi(Appellant) V/s. M/s Dentsply India Pvt .Ltd., Plot No.358, FIES Patparganj Industr ial Area,Delhi-92(Respondent)