INCOME TAX ACT, 1961

Section 254 Section 147/148 Rule 11

Appeal (Tribunal) - Additional grounds - Admissibility -

Assessee submitted that the additional grounds were legal grounds and go to the root of the matter and all the facts necessary for the adjudication of the grounds were on record. The assessee also submitted that assessee can raise a legal additional ground or fresh legal plea at any stage of the proceedings relying upon the decision of the Supreme Court. Assessee also explained that why he had not raised this ground categorically at the time of filing of the appeal since the assessee on the advice of earlier counsel, who filed this appeal, was of the bona fide belief that ground No. 4 covers the challenge to the jurisdiction of AO under section 147. It was further stated that it is a settled principle of law that unless the mala fide writ large on its face, the delay should be condoned and justice should be done. Therefore, assessee submitted that the previously mentioned grounds were permitted to be urged which have not been raised due to incorrect legal advice and documents. Held: Tribunal had carefully considered the rival contentions and perused the application made by the assessee and grounds raised by the assessee in the additional ground. It was apparent that all the grounds raised by the assessee praying for admission as an additional grounds were legal ground and goes to the root of the matter. They challenge the assumption of jurisdiction of AO to reopen the case of assessee as well as sanction of the approving authority. The assessee had also given reasons for not raising these grounds earlier. The assessee had also relied upon several binding judicial precedents before this Tribunal for admission of the above grounds. In view of all these facts, this Tribunal admit the additional grounds raised by the assessee and proceeded to adjudicate the appeal on the grounds raised in the original appeal memo as well as in the additional ground raised by the assessee.

Relied:CIT v. Varas International (P) Ltd. (2006) 284 ITR 80 (SC) : 2006 TaxPub(DT) 1456 (SC) and National Thermal Power Co Ltd. v. CIT (1998) 229 ITR 383 (SC) : 1998 TaxPub(DT) 342 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

INCOME TAX ACT, 1961

Sections 147, 151

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