TMI Blog1979 (7) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... e nor did he furnish evidence as required and hence the assessment was made under s. 144 of the Act. The ITO computed the income from contract business at Rs. 15,000. He had found from the copy of the account filed by the assessee that the assessee had taken two loans during the relevant previous year from Sri Ram Swarup Bhalla and Sri A. N. Nayyar of Rs. 20,000 and Rs. 8,000, respectively. Since the assessee did not produce any evidence whatsoever to prove the genuineness of those loans, the ITO treated the same as the assessee's income from undisclosed sources. The assessee filed an application under s. 146 of the Act which was rejected by the ITO and against the order there was no further appeal. The assessee, however, preferred an app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the opinion of this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in confining itself to the material on record before the Income-tax Officer and in not admitting fresh evidence for the purposes of examining the taxability of Rs. 27,000 as income from undisclosed sources ? " It was urged before us on behalf of the assessee by his counsel, Sri R. K. Gulati, that the AAC did not admit fresh evidence on a mistaken view of his jurisdiction and the same was the position with regard to the Appellate Tribunal and reliance was placed on several decisions, viz., Sundermul Co. v. CIT [1967] 66 ITR 277 (AP), M. M. Muthuwappa v. CIT [1962] 46 ITR 1107 (Mad), T. C. N. Menon v. ITO [1974] 96 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any ground of appeal; or (d) where the Income-tax Officer has made the order appealed against without giving sufficient opportunity to the appellant to adduce evidence relevant to any ground of appeal. (2) No evidence shall be admitted under sub-rule (1) unless the Appellate Assistant Commissioner records in writing the reasons for its admission. (3) The Appellate Assistant Commissioner shall not take into account any evidence produced under sub-rule (1) unless the Income-tax Officer has been allowed a reasonable opportunity ; (a) to examine the evidence or document or to cross-examine the witness produced by the appellant, or (b) to produce any evidence or document or any witness in rebuttal of the additional evidence produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trarily or capriciously while refusing to admit fresh evidence at the appellate stage. As for the stage of the appeal before the Appellate Tribunal, r. 29 of the I.T. (Appellate Tribunal) Rules, 1963, provides that the parties to the appeal shall not be entitled to produce additional evidence, either oral or documentary before the Tribunal, but if the Tribunal requires any document to be produced or any evidence to be examined or any affidavit to be filed to enable it to pass orders or for any other substantial cause or if the ITO has decided the case without giving sufficient opportunity to the assessee to adduce evidence either on the points specified by him or not specified by him, the Tribunal may allow such document to be produced, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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