INCOME TAX ACT, 1961

Section

Appeal (Tribunal) - Additional ground - Admissibility -

Assessee raised an additional ground before Tribunal. It was submitted that the said additional ground was purely a legal ground and would go to the root of matter, therefore, the same should be admitted as all the facts relating to the said ground were available on record. Held: The Supreme Court in the case of National Thermal Power Co. Ltd. v. CIT (1998) 229 ITR 383 (SC) : 1998 TaxPub(DT) 0342 (SC) concluded that undoubtedly, the Tribunal has the discretion to allow or not to allow a new ground to be raised. But, where the Tribunal is only required to consider the question of law arising from facts which are on record in the assessment proceedings, there is no reason why such a question should not be allowed to be raised when it is necessary to consider that question in order to correctly assess the tax liability of an assessee. In instant case, the additional ground raised by the assessee was a legal ground and facts relating to such ground were available on record. Therefore, in view of the said decision of the Supreme Court, the additional ground raised by the assessee was admitted.

Followed:National Thermal Power Co. Ltd. v. CIT (1998) 229 ITR 383 (SC) : 1998 TaxPub(DT) 0342 (SC)

REFERRED :

FAVOUR : Additional ground admitted/In assessee's favour.

A.Y. :

INCOME TAX ACT, 1961

Section 10(23C)(iiiad)

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