Income Tax Appellate Tribunal on Admission of Additional Evidence under Rule 29 of ITAT Rules.

Headnote:

The ITAT Delhi set aside the order of the CIT(A) and remanded the matter for fresh adjudication after admitting additional evidence under Rule 29 of the ITAT Rules, 1963. The Tribunal held that the assessee was not given an adequate opportunity during assessment proceedings and that the additional documents—such as confirmations and loan-to-equity conversion records—were material for just determination of the dispute. The appeal was thus allowed for statistical purposes.

Background:

• The assessee had not filed a return of income for AY 2016–17.

• Based on information regarding purchase of immovable property worth ₹61,00,000, the AO reopened the case under Section 147 and issued a notice under Section 148.

• The assessee failed to respond to the notices, and the AO treated the purchase amount as unexplained investment under Section 69 of the Income Tax Act, 1961.

• CIT(A) upheld the addition of ₹61,00,000 and consequential interest under Sections 234A–234D, leading to the present appeal before the ITAT.

Court’s Observations:

• The Tribunal found merit in the assessee’s contention that neither the AO nor the CIT(A) properly appreciated the evidences already submitted during assessment.

• The assessee filed an application under Rule 29 of the ITAT Rules seeking admission of additional evidence, including confirmations from loan providers and documents showing conversion of loans into equity.

• ITAT held that these documents were crucial to determine the genuineness, creditworthiness, and identity of lenders, and thus admissible in the interest of justice.

• The matter was remanded to the CIT(A) with directions to decide the issue afresh after considering all evidence and granting the assessee an adequate opportunity of hearing.

• The assessee was also directed to cooperate fully and produce all relevant material before the appellate authority.

Legal Provisions Discussed:

• Section 69, Income Tax Act, 1961 – Unexplained investments.

• Sections 147 & 148, Income Tax Act, 1961 – Reassessment proceedings.

• Sections 234A–234D, Income Tax Act, 1961 – Levy of interest for defaults and delays.

• Rule 29, ITAT Rules, 1963 – Admission of additional evidence before the Tribunal.

Outcome

Appeal allowed for statistical purposes; matter remanded to CIT(A) for reconsideration with additional evidence duly admitted.

Citation: 2025:ITAT(DEL):1118

Case: Ravinder Kaur Bhasin v. ACIT / NFAC, New Delhi

Court: Income Tax Appellate Tribunal, Delhi Bench ‘E’

Coram: Shri S. Rifaur Rahman (Accountant Member) & Shri Sudhir Kumar (Judicial Member)

Date of Decision: 01 October 2025

Appeal No.: ITA No. 1118/Del/2025

Assessment Year: 2016–17