Additional Ground Before CIT (Appeal)

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Additional Ground Before CIT (Appeal)

Jute Corpn. of India Ltd. vs. CIT [1991] 187 ITR 688 (SC):
 It was held in this case that the Act does not contain any express provision debarring an assessee from raising an additional ground in appeal and there is no provision in the Act placing restriction on the power of the appellate authority in entertaining an additional ground in appeal.
In the absense of any statutory provision, the general principle relating to the amplitude of appellate authority’s power being co-terminus with that of the initial authority should normally be applicable.
If the tax liability of the assessee is admitted and if the ITO is afforded opportunity of hearing by the appellate authority in allowing the assessee’s claim for deduction on the settled view of law, there appears to be no good reason to curtail the powers of the appellate authority under section 251(1)(a).
Even otherwise an appellate authority while hearing appeal against the order of subordinate authority has all the powers which the original authority may have in deciding the question before it subject to the restrictions or limitations, if any, prescribed by the statutory provisions.
In the absence of any statutory provision the appellate authority is vested with all the plenary powers which the subordinate authority may have in the matter.
There appeared to be no good reason to justify curtailment of the power of the AAC in entertaining an additional ground raised by the assessee in seeking modification of the order of assessment passed by the ITO. There may be several factors justifying raising of such new plea in appeal, and each case has to be considered on its own facts. If the AAC is satisfied he would be acting within his jurisdiction in considering the question so raised in all its aspects. Of course, while permitting the assessee to raise an additional ground, the AAC should exercise his discretion in accordance with law and reason. He must be satisfied that the ground raised was bona fide and that the same could not have been raised earlier for good reasons. The satisfaction of the AAC depends upon the facts and circumstances of each case and no rigid principles or any hard and fast rule can be laid down for this purpose.
Further, Hon’ble Supreme Court in the case of NTPC 229 ITR 383 has also held that the additional ground of appeal can be taken up at any stage of the proceedings as long as the issue is apparent from record.

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