Appellate Authority Can Re-Adjudicate Refunds Based on New Evidence and Facts: Orissa High Court
The Orissa High Court ruled that the Appellate Authority is fully empowered to re-adjudicate refund claims by taking into consideration new documentary evidence, facts, and legal arguments presented by the taxpayer, provided the documents pertain to the original refund application.
Key Points of the Judicial Ruling
- Scope of Appellate Power: The court emphasized that the Appellate Authority’s role is not limited to merely confirming or setting aside the initial Adjudicating Authority’s order. It is entitled to re-examine the case entirely on its merits, including verifying all documents and facts, to arrive at a correct conclusion regarding the taxpayer’s entitlement to a refund.
- Consideration of New Evidence: If the taxpayer produces necessary supporting documentation—even if belatedly—that pertains to the original refund claim and is essential for establishing its legitimacy, the Appellate Authority must consider it. Excluding such evidence would amount to a failure to fully discharge the authority’s duty to ensure justice and correctness in the tax liability determination.
- Ensuring Fair Adjudication: This decision ensures that genuine refund claims are not rejected simply due to minor procedural lapses or the initial authority’s error in demanding or verifying documents. It reaffirms that the Appellate Authority has the necessary flexibility to look into all aspects of the case (facts and law) for a just and equitable determination.