Additional evidence

Powers under s 250(4) and Rule 46A — If the CIT(A) exercises his powers under s 250(4) to call for additional evidence, the AO need not be given an opportunity to show-cause; however, if the CIT(A) acts on an application under r 46A, then the requirement of giving the AO an opportunity as per r 46A(3) is mandatory — as held by DelHC in CIT v Manish Build Well Pvt Ltd — In favour of: Others.

The conditions prescribed in r 46A must be shown to exist before additional evidence is admitted and every procedural requirement mentioned in the Rule has to be strictly complied with so that the Rule is meaningfully exercised and not exercised in a routine or cursory manner.

Account — In the case of construction contracts, the assessee can follow either the project completion method or the percentage completion method.

In favour of: The assessee.