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2016 (5) TMI 717 - AT - Income TaxDeduction u/s 80IB - claim of assessee was denied due to noncompliance of provisions of Section 80IB(2)(iv) - AO held that the assessee has also failed to establish correctness of deduction u/s 80IB of the Act, that it carried out its manufacturing activity by use of electricity and also not employing twenty or more workers to carry out his business without electricity, hence, deduction u/s 80IB of the Act was denied - Held that:- The Tribunal in the first round has clearly indicated that in absence of technical expert opinion and other relevant material on record , it is not able to give finding as to whether the manufacturing process carried on by the assessee is with the aid of power or not. The assessee has not in the first round of litigation produced the technical expert opinion about the reasons and justification for no or low usage of electricity and also whether the manufacturing is carried on with the aid of the power. The assessee has produced these technical expert opinions before the Tribunal in second round of litigation and has explained that in the interest of substantial justice and equity, the same should be admitted and has contended that due to ailments and advanced age of the assessee the same could not be adduced earlier before the authorities below. We are inclined to accept and admit the additional evidences submitted by the assessee in the interest of substantial justice as these evidences are vital and essential for resolving the controversy and go to the root of the matter for resolving the dispute, despite the fact that this is the second round of litigation and the assessee has failed to produce these evidences earlier, due to the various reasons cited by the assessee in its application for admission of additional evidences and also to advance substantial justice in deciding the case of merits vis-ŕ-vis technicalities involved in admitting the additional evidences. By admitting these additional evidences, the case will at best be decided on merits instead of rejecting the matter at threshold which in our considered view will not advance justice. But at the same time we are equally conscious of the fact that these additional evidences are to be subjected to verification and scrutiny by the Revenue authorities in accordance with the principles of natural justice which demand that the Revenue need to be accorded an opportunity to verify these additional evidences now submitted by the assessee before the Tribunal in second round of litigation. Thus we set aside the matter to the file of the AO for de-novo determination of the issue after considering the additional evidences submitted by the assessee. - Decided in favour of assessee for statistical purposes.
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