Additional ground not raised before the CIT could be raised before the Tribunal: Calcutta HC

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Additional ground not raised before the CIT could be raised before the Tribunal: Calcutta HC

 

Principal Commissioner of Income Tax 2 Kolkata Vs Eversafe Securities Pvt Ltd (ITAT/156/2022, IA NO: GA/1/2022, GA/2/2022)

 

Facts:

  1. Assessment Order was passed under Sec 143(3) of the Income Tax Act dated 14.03.2015 by the AO without a notice U/S 143(2) of the Act.
  1. However, the ground was never canvassed by the assessee before the Commissioner of Income Tax (Appeals) when they challenged the assessment order dated 14.03.2015 and raised the issue of non service of notice U/S 143(2) for the first time before the learned Tribunal.
  1. So the question before the HC was whether on the facts and circumstances of the instant case and in law the Learned Income Tax Appellate Tribunal has grossly erred in law in deciding on new additional grounds as points of law raised for the first time, without recording reasons and without passing a speaking order to admit new additional grounds which is in violation of Rule 46A of the I.T. Rules 1962 ?

Hon Calcutta HC held as below:

  1. The settled legal position is that there can be no estoppel against law. Furthermore, the issue which has been raised before the learned Tribunal is a jurisdictional issue which goes to the root of the matter.
  1. Therefore, the learned Tribunal had rightly taken note of the legal position and held the assessment to be bad in law. Thus we find there is no substantial questions of law arising for consideration in this appeal.
  1. The appeal by the Revenue is dismissed.

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