MP HC to Examine ITAT's Reliance on Investigation Report sans ITAT Rule 29 Compliance, Issues Notice to Income Tax Department [Read Order]
According to Rule 29 of Income Tax Act stated that the parties to the appeal shall not be entitled to produce additional evidence either oral or documentary before the Tribunal
![MP HC to Examine ITATs Reliance on Investigation Report sans ITAT Rule 29 Compliance, Issues Notice to Income Tax Department [Read Order]](https://www.taxscan.in/wp-content/uploads/2024/06/Madhya-Pradesh-High-Court-Income-Tax-Department-ITAT-Rule-Income-Tax-Issues-Noticee-taxscan.jpg "MP HC to Examine ITATs Reliance on Investigation Report sans ITAT Rule 29 Compliance, Issues Notice to Income Tax Department [Read Order]")
The Madhya Pradesh High Court has decided to scrutinize the Income Tax Appellate Tribunal ( ITAT ) 's reliance on an investigation report without adhering to ITAT Rule 29 compliance, and has consequently issued a notice to the Income Tax Department. An application filed under Section 5 of the Limitation Act, 1963 seeking condonation of delay. For the reasons stated in the application...
The Madhya Pradesh High Court has decided to scrutinize the Income Tax Appellate Tribunal ( ITAT ) 's reliance on an investigation report without adhering to ITAT Rule 29 compliance, and has consequently issued a notice to the Income Tax Department.
An application filed under Section 5 of the Limitation Act, 1963 seeking condonation of delay. For the reasons stated in the application was allowed. The delay of 5 days in filing this appeal was hereby condoned.
The appeal was admitted on the following substantial question of law:
“Whether the Tribunal was justified in admitting and relying upon the investigation report of the Investigation Wing, Kolkata of the Income Tax Department dated 27.04.2015 and treating the same as additional evidence in absence of any application under Rule 29 of the ITAT Rules, 1963.”
According to Rule 29 of ITAT rules stated 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 required any document to be produced or any witness to be examined or any affidavit to be filed to enable it to pass orders or for any other substantial cause, or , if the income-tax authorities have decided the case without giving sufficient opportunity to the assessee to adduce evidence either on points specified by them or not specified by them, the Tribunal, for reasons to be recorded, may allow such document to be produced or witness to be examined or affidavit to be filed or may allow such evidence to be adduced
The bench comprising Justice Dharam Adhikari and Justice Gajendra Singh has ruled to issue notice to the respondent, with the condition of payment of process fees within seven working days through RAD mode. The notice is to be made returnable within four weeks.
To Read the full text of the Order CLICK HERE
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