The appellant had filed an application for admission of additional evidence in terms of rule 29 of the Income-Tax (Appellate Tribunal) Rules, 1963 (hereinafter referred to as the ‘ITAT Rules’) on 14th January 2019. On 17th January 2019, the Tribunal concluded its hearing in the said appeal. Thereafter, on 22nd January 2019, the appellant filed its synopsis/written submissions. On 28th February 2019, the Tribunal passed the impugned order without dealing with the application filed by the appellant for admission of additional evidence under Rule 29. After the impugned order had been passed by the Tribunal, the appellant preferred an application for rectification dated 8th May 2019 under section 254(2). However, till date no order has been pronounced by the Tribunal on the application filed. The High Court in the view of the case of Jyotsna Suri [2003] 128 Taxman 33. held that the Tribunal was bound to decide the application under Rule 29 and thereafter to dispose of the appeal on merits. (ITA No. 211 of 2020, CM APPL No.32045-32047 of 2020, dt. 22-12-2020)
HL Malhotra & Co. (P.) Ltd. v. DCIT (2021) 431 ITR 148/ 278 Taxman 239 /125 taxmann.com 70 / 203 DTR 192/ 321 257(Delhi)(HC)HL Malhotra & Co. (P.) Ltd. v. DCIT (2021) 431 ITR 148/125 taxmann.com 70 (Delhi)(HC)
S. 254(1) : Appellate Tribunal – Duties- Adducing additional evidence – assessee filed additional evidence – Tribunal passed order without dealing with application to file additional evidence – order set aside – Matter remanded – Tribunal directed to first dispose the application for additional evidence and then pass order on merits for the appeal.[S.260A, ITAT R. 29 ]