Admission of Additional Grounds of Appeal or Evidence
Appellant Authority may allow appellant to go into any ground of appeal not raised in the appeal memo if omission of that ground in the appeal memo was “not wilful or not unreasonable”. Similarly, in specified circumstances, additional evidence can be brought on record before the appellant authority.
1. Admission of Additional Grounds of Appeal
1.1. Raising Additional grounds before CIT(A)
The Joint Commissioner (Appeals) or Commissioner (Appeals)may admit the additional grounds of appeal which were not included in the grounds of appeal filed at the time of filing the appeal, if he is satisfied that the omission of such a ground from the grounds of appeal was not wilful or unreasonable.
1.1-1. Power of CIT(A)
Section 359(3) empowers the Joint Commissioner (Appeals) or CIT (Appeals) to allow the appellant to go into any ground of appeal not specified in the grounds of appeal if the JCIT(A) or CIT(A) is satisfied that the omission of that ground from the form of the appeal was not wilful or not unreasonable.
1.1-2. The claim should be bona fide
A reading of Section 359 makes it clear that the scheme of the Act empowers the first appellate authority to allow the appellant to submit any ground not taken in the grounds of appeal and decide the same unless it is satisfied that failure to raise such a ground earlier was wilful or unreasonable. Where there is material evidence before the Assessing Officer to support such a claim, such a claim (even if not raised before the Assessing Officer), if raised before the first appellate authority, he ought to consider and decide it if he is satisfied about the bona fides. In each case, it has to decide on facts of its own to entertain or not to entertain a new claim or a new ground
1.1-3. Filing of additional grounds in a faceless appeal
Section 532 empowers the Central government to make a scheme for any purpose of the Act so as to impart greater efficiency, transparency and accountability by:
(a) Eliminating the interface with the assessee or any other person to the extent technologically feasible.
(b) Optimising utilisation of the resources through economies of scale and functional specialisation.
This provision also provides that where a scheme has been notified under the Income-tax Act 1961, the Central Government may amend or modify the said scheme. This indicates that the schemes notified under the ITA 1961 will continue to apply, which is also in line with the repeal and saving provision of Section 536(2)(j) that provides that any scheme issued under any provision of the repealed Income-tax Act shall, so far as it is not inconsistent with the corresponding provisions of this Act, be deemed to have been issued under the corresponding provision of this Act and shall continue in force accordingly.
Under the ITA 1961, the CBDT has notified the e-appeal scheme, 2023
1.2. Raising Additional grounds before ITAT
Under Rule 11 of the Income Tax (Appellate Tribunal) Rules, 1963, the appellant cannot, except by leave of the Tribunal, urge or be heard in support of any ground not set out in the Memo of Appeal. In case any additional ground is preferred, it is to be put up before the Bench for order and will be kept on the file subject to all exceptions which may be taken at the time of hearing regarding its admissibility, and a copy thereof is to be sent to the respondent for information. It should be preferred in triplicate.
While deciding the appeal, the Tribunal is not to confine itself to the grounds of appeal set out in the memorandum of appeal or taken by leave under the aforesaid rule. The Tribunal shall also not rest its decision on any other grounds unless the party which may be affected thereby has had a sufficient opportunity of being heard on that additional ground.
Tribunal has the power to admit additional grounds, but at the same time, the entire assessment is not before the Tribunal, as it is before the first appellate authority. Additional grounds should ordinarily relate to issues arising out of the order of the first appellate authority
2. Admission of Additional Evidence
2.1. Additional Evidence before JCIT(A) or CIT(A)
Rule 192 of the Income-tax Rules 2026 deals with the production of additional evidence before the JCIT(A) and CIT(A) after an assessment is made by the Assessing Officer. The appellant must move an application under Rule 192 seeking to allow the additional evidence to be adjudicated upon.
In general, the appellant is not entitled to produce any evidence before the JCIT(A) and CIT(A), whether oral or documentary, other than the evidence produced by him during the course of proceedings before the Assessing Officer.
2.1-1. Circumstances in which additional evidence can be submitted
Additional evidence can be produced at the first appellate stage in the following circumstances:
(a) Where the Assessing Officer has refused to admit evidence, which ought to have been admitted;
(b) Where the appellant was prevented by sufficient cause from producing the evidence which he was called upon to produce by the Assessing Officer;
(c) Where the appellant was prevented by sufficient cause from producing before the Assessing Officer any evidence which is relevant to any ground of appeal; or
(d) Where the Assessing Officer has made the order appealed against without giving sufficient opportunity to the appellant to adduce evidence relevant to any ground of appeal.
However, no evidence shall be admitted in the above circumstances unless the JCIT(A) and CIT(A) records in writing the reasons for its admission.
2.1-2. Opportunity to Assessing Officer
The JCIT(A) and CIT(A) shall not take into account any evidence produced by the assessee unless the Assessing Officer has been allowed a reasonable opportunity to examine the evidence or document or to cross-examine the witness produced by the appellant, or to produce any evidence or document or any witness in rebuttal of the additional evidence produced by the appellant.
2.1-3. Admission of additional evidence without giving an opportunity to the Assessing Officer
Additional evidence filed before the JCIT(A) and CIT(A) can be categorised into two parts. The first category consists of the assessee voluntarily filing the additional evidence before the JCIT(A) and CIT(A). In such a situation, the JCIT(A) and CIT(A) are obliged to allow the Assessing Officer a reasonable opportunity before admitting the additional evidence.
The second category deals with such evidence, which is directed to be produced by the JCIT(A) and CIT(A) for the disposal of the appeal before it. The voluntary character of filing the additional evidence in the first situation is absent in the second, as the filing of additional evidence is necessitated due to the direction of the JCIT(A) and CIT(A). When the additional evidence is filed under the second category, then there is no requirement for confronting the Assessing Officer with the documents/evidence entertained by the JCIT(A) and CIT(A) at the first appellate stage
2.1-4. Powers of JCIT(A) and CIT(A)
The JCIT(A) and CIT(A) have wide powers under Section 359(3) for taking note of the documents annexed with the written arguments submitted by the assessee, which he failed to do.
The distinction should be recognized and maintained between a case where the assessee invokes Rule 192 to adduce additional evidence before the JCIT(A) and CIT(A) and a case where the JCIT(A) and CIT(A) without being prompted by the assessee, while dealing with appeal, considered it fit to cause or make a further enquiry by virtue of powers vested in him under Section 359(3) and it is only when he exercises his statutory suo moto power, that requirements of Rule 192 need not be followed
The interpretation of Rule 192 of Income-tax Rules, 2026 is that it only fetters the rights of the assessee to produce additional evidence, but it does not restrain the Commissioner (Appeals)’s powers under section 359(3)
2.1-5. Filing of additional evidence in a faceless appeal
The e-appeal scheme, 2023, and the Faceless Appeal Scheme allow the appellant to furnish additional evidence to the JCIT(A) or CIT(A), other than the evidence produced by him during the course of proceedings before the Assessing Officer. The additional evidence to be filed by the appellant in the prescribed form, specifying therein as to how his case is covered by the exceptional circumstances specified in Rule 192.
In case such additional evidence is furnished, the JCIT(A) and CIT(A) shall send the additional evidence to the Assessing Officer for furnishing a report on the admissibility of additional evidence. After considering the additional evidence and report furnished by the Assessing Officer, the JCIT(A) or CIT(A) may admit or reject the additional evidence. Reasons for the same shall be recorded in writing and the same shall form part of the appeal order.
2.1-6. Admission of additional evidence in a faceless appeal
If the additional evidence filed by the appellant is admitted by the JCIT(A) or CIT(A), then the following procedure shall be followed:
(a) Before taking such additional evidence into account, the JCIT(A) or CIT(A) shall prepare a notice to provide an opportunity to the Assessing Officer within the date and time specified therein:
• To examine such evidence or to cross-examine such a witness, as may be produced by the appellant; or
• To produce any evidence, document, or any witness in rebuttal of the additional evidence or witness produced by the appellant and furnish a report thereof.
(b) JCIT(A) or CIT(A) shall send such notice to the Assessing Officer.
(c) The Assessing Officer shall furnish the report to the JCIT(A) or CIT(A) within the date and time specified, or such extended date and time as may be allowed based on an application made in this behalf.
2.2. Additional Evidence before ITAT
The parties to the appeal shall not be entitled to produce additional evidence, either oral or documentary, before the Tribunal. However, in specified circumstances, the Tribunal may allow a document to be produced, a witness to be examined, an affidavit to be filed, or such evidence to be adduced.
If the document is directed to be produced or a witness examined or evidence adduced before any Income-tax authority, he shall comply with the directions of the Tribunal and, after compliance, send the document, the record of the deposition of the witness or the record of the evidence adduced to the Tribunal.
2.2-1. Circumstances for Admission of Additional Evidence
Rule 29 of Income-tax (Appellate Tribunal) Rules, 1963 deals with the production of Additional evidence before the Income Tax Appellate Tribunal. ITAT can admit additional evidence in the following three circumstances:
(a) Lower authorities have passed orders without giving sufficient opportunity.
(b) ITAT requires the evidence to enable it to pass orders.
(c) For any other substantial cause
2.2-2. Interpretation of ‘any other substantial cause’
There may well cases where even though the court finds that it is able to pronounce judgment on the state of record as it is, and so, it cannot strictly say that it requires additional evidence ‘to enable it to pronounce judgment’, it still considers that in the interest of justice something which remains obscure should be filled up so that it can pronounce its judgment in a more satisfactory manner. Such a case will be one for allowing additional evidence
References
CIT v. Gokuldass & Co. [2002] 122 Taxman 849/253 ITR 663 (Raj.)
Notification S.O. 2352(E), dated 29-05-2023
Notification S.O. 3296(E), dated 25-9-2020
Ooppootil Kurien and Co. Pvt. Ltd. v. CIT [2004] 266 ITR 409 (Ker.).
DIT (International Taxation) v. Thoresen Chartering Singapore (Pte.) Ltd. [2009] 118 ITD 416 (Mum.)
CIT v. Manish Buildwell (P) Ltd. [2011] 16 taxmann.com 27 (Del.)
CIT v. Doyang Wood Products Ltd. [2002] 124 Taxman 120 (Gauhati) (Mag.).
K. Venkataramiah v. A Seetharama Reddy AIR 1963 SC 1526
This article is general information and not tax advice. Provisions change. Confirm your position with a qualified professional before acting.