ITAT considers Revised Tax Audit Report as Additional Evidence as it is vital piece of evidence [Read Order]

The Income Tax Appellate Tribunal (ITAT), Chandigarh Bench held that ITAT considered Revised Tax Audit Report as additional evidence as it is vital piece of evidence.

The assessee, Anil Kumar Jain, is an individual carrying on business of manufacturing and trading of hosiery goods, yarn and knitted cloth in the name and style of M/s A.P. Hosiery Industries. The return of income for the captioned year was filed declaring an income of Rs. 26,78,580. The return of the assessee was processed u/s 143(1) Income Tax Act, 1961 assessing the income at Rs. 49,17,260.

Aggrieved, the assessee preferred an appeal before the First Appellate Authority who partly allowed the assessee’s appeal by deleting the disallowance of Rs. 45,680 made u/s 36(1)(iii) of the Act and addition of Rs. 766 made u/s 36(1)(va) of the Act. The CIT(A), however, confirmed the addition of Rs. 21,92,232 made u/s 36(1)(ii) of the Act.

The Counsel for the assessee has filed an application seeking permission to file additional evidence before the ITAT which was the revised Tax Audit Report from the same C.A. wherein the inadvertent clerical error as aforementioned has been rectified and further submitted that the same is a vital piece of evidence, which goes to prove the case of the assessee and, therefore, the above Revised Tax Audit Report may be admitted as additional evidence.

The Bench consisting of Sudhanshu Srivastava, Judicial Member observed that “The revised Tax Audit Report is a vital piece of evidence which goes to the very root of the matter and should be admitted for the furtherance of cause of justice. Accordingly, I admit the additional evidence and since the lower authorities have not had any occasion to examine the same, I further deem it expedient to restore the issue to the file of the Assessing Officer with a direction to adjudicate the issue afresh after duly considering the revised Tax Audit Report which I have admitted as additional evidence.”

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