MOHAMMAD K Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) The question which arises in this Original Petition is whether an assessee under the Income Tax Act is entitled to produce fresh evidence before the Appellate Assistant Commissioner. In the returns filed by the assessee for the assessment year 1969-70 two cash credits for Rs. 5000/ and Rs. 5500/ were shown. According to the assessee, the sum of Rs. 5000/ was received by him at the time of his marriage and the other amount of Rs. 5500/ was realised by him on sale of ornaments. For neither of these two amounts was the assessee in a position to produce evidence to substantiate his contention. His explanation was rejected by the assessing authority. At the time of hearing before the Appellate Assistant Commissioner, the assessee sought permission to produce certain documents and examine certain witnesses in support of his contentions regarding the two amounts. This was refused by the Appellants Assistant Commissioner and the refusal was upheld in revision by the Commissioner.

(2.) S.250(4) of the Income Tax Act, 1961, provides:

(3.) That a wide discretion is not conferred upon the Appellate Assistant Commissioner is clear from the fact that, unlike in the case of the Income Tax Appellate Tribunal, the section clearly provides for a further enquiry. In the case of the Tribunal, however, R.29 of the Income Tax Appellate Tribunal Rules, 1963, specifically states that the parties to the appeal have no right to produce additional evidence, unless the Tribunal specifically grants the permission. This is not so in the case of an appeal before the Appellate Assistant Commissioner. The discretion conferred upon him is much narrower and it has to be exercised in accordance with the well known principles of law.