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2014 (9) TMI 933 - ITAT COCHINAddition u/s 68 - Opportunity for production of documents not provided - Held that:- The assessing officer made addition on the basis of the investment, expenditure and payments on the insurance policy, etc. after reducing the income disclosed in the returns filed in the regular course. Now the assessee claims that the addition was made only on the basis of the expenditure and the investments made by the assessee and no addition was made on the basis of the credit found u/s 68 of the Act. Therefore, the confirmation letter filed from the creditor may be irrelevant at this stage. However, the assessee has to explain the source for making investment in the landed property, expenditure like marriage, personal drawings, payments on insurance policy, etc. The assessee filed an application for admission of additional evidence seeking permission of the Tribunal on the ground that two hectares and 20.96 Are land was purchased and it was cultivated. The income from agriculture is also available with the assessee for investment in the landed property for meeting the expenditure for marriage and payment on LIC policy. Tribunal is of the considered opinion that both the authorities below had no occasion to examine the land holdings of the assessee and the cultivation said to be made by the assessee and the possible income that would have been generated from cultivation. Incometax proceedings are only to assess the correct taxable income. Merely because the assessee could not file certain documents before the lower authorities especially when the agricultural land was purchased in the earlier assessment years, this Tribunal is of the considered opinion that the same cannot be reason for not giving an opportunity to produce the necessary documents during the pendency of the proceeding before the appellate authorities. Rejecting the claim of the assessee on technicality may not be in the interest of justice. Giving one more opportunity to the assessee may not prejudice the interest of the revenue in any way. This Tribunal is of the considered opinion that giving one more opportunity to the assessee to produce the material before the assessing officer would definitely promote the cause of justice. The assessing officer can examine the documents now filed before the Tribunal as additional evidence on merit and assess the taxable income under the provisions of the Act. This Tribunal is of the considered opinion that the additional evidence filed by the assessee has to be examined by the assessing officer at the first instance. Accordingly, the orders of the lower authorities are set aside - Matter remanded back - Decided in favour of assessee.
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