The Tax Publishers2021 TaxPub(DT) 0585 (Del-Trib)

INCOME TAX ACT, 1961

Section 253(4)

As ground raised by way of cross-objections filed before Tribunal against appeal filed by revenue was legal one, assessee could not be precluded from raising a legal ground for the first time before appellate authority i.e. ITAT through grounds as raised in cross-objections were never taken before CIT(A) nor did CIT(A) adjudicate these grounds.

Appeal (Tribunal) - Cross-objection - Grounds as raised in cross-objections were never taken before CIT(A) nor did CIT(A) adjudicate these grounds -

Assessee by way of cross-objections filed before Tribunal against appeal filed by revenue challenged addition made while framing assessment under section 153A on the ground of no incriminating material found during search. Revenue's case was that cross-objections could be filed only against any part of the order of appellate authority and concerned party should be aggrieved. However, in the instant case grounds as raised in cross-objections were never taken before CIT(A) nor did CIT(A) adjudicate these grounds. Therefore, once assessee had foregone its right to appeal it could not be raised in cross-objections before Tribunal. Held: Tribunal while deciding the appeal is not confined to the grounds set forth in memorandum of appeal or those which assessee may urge with its leave. It can decide the appeal on any ground provided only that affected party has an opportunity of being heard on that ground. As ground raised by assessee was legal one, assessee could not be precluded from raising a legal ground for the first time before appellate authority.

Relied:NTPC v. CIT reported in (1998) 229 ITR 383 (SC) : 1998 TaxPub(DT) 342 (SC), ITO v. Jasjit Singh (2014) TPMI 116 New-Del) and Asstt. CIT v. MKR Construction Pvt. Ltd. 2017 12 TMI 565. Distinguished:Neetee Clothing Pvt. Ltd. (2010) 129 TTJ 342 (Del-Trib) : 2010 TaxPub(DT) 1256 (Del-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12


INCOME TAX ACT, 1961

Section 153A

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