COMMISSIONER OF INCOME TAX Vs. JAIPUR UDYOG LIMITED

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal has referred the following questions of law arising out of its order dated April 3, 1981, in respect of the assessment year 1970-71 :

(2.) WHETHER having confirmed the disallowance of depreciation on building at Bijawasan Garden, New Delhi, and on electric and water installations therein, the Tribunal was justified in restoring the issue to the Income-tax Officer and in directing that in case, on some fresh evidence, the Income-tax Officer thinks otherwise, he may re-examine the issue ?

(3.) FROM a perusal of the above rule it is evident that the Tribunal can require 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. No finding is recorded by the Tribunal that sufficient opportunity was not given to the assessee to adduce evidence. In a particular case where the evidence is directed to be adduced before the income-tax authorities it is not expected of the Tribunal to adjudicate the matter on the merits. The only proper course for it was to send the case back to the income-tax authorities for taking evidence on record and pass order in accordance with law. In the present matter, the matter has been decided on the merits and a case was not made out that the assessee was not given opportunity to produce evidence before the Income-tax Officer. The matter has been considered on the merits and thereafter there remains no justification for sending the case back to the Income-tax Officer for examining the evidence and to take further evidence which the assessee may adduce. The assessee had opportunity to adduce evidence even before the Tribunal. No such evidence was produced.