TMI Blog2023 (3) TMI 1154X X X X Extracts X X X X X X X X Extracts X X X X ..... as to what prevented the assessee from raising such claim before the AO. We do not agree with the aforesaid reasoning of CIT(A) for denying the claim of the assessee in view of the facts in the case of CIT vs. Pruthvi Brokers and Shareholders Pvt. Ltd. [ 2012 (7) TMI 158 - BOMBAY HIGH COURT] after considering the decision of Hon ble Supreme Court in the case of Jute Corporation India Ltd. [ 1990 (9) TMI 6 - SUPREME COURT] as held that assessee is entitled to raise the additional ground not merely in terms of legal submissions but also legal claim not made in the return filed by it. Appellate authorities have jurisdiction to deal not merely with additional grounds, which became available on account of change of circumstances or law, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luding insecticides, herbicides etc. Assessee electronically filed its return of income for A.Y. 2017-18 on 30.11.2017 declaring total income of Rs.118,61,64,030/-. The case of the assessee was selected for scrutiny and thereafter, assessment was framed u/s 143(3) of the Act vide order dated 23.12.2019 and the total income was determined at Rs. 1,23,48,92,320/-. Aggrieved by the order of AO, assessee carried the matter before CIT(A) who vide order dated 24.03.2021 in Appeal No.CIT(A), Delhi- 23/10270/2019-20 dismissed the appeal of the assessee. Aggrieved by the order of CIT(A), assessee is now in appeal and has raised the following grounds of appeal : 1.0 That on the facts and in the circumstances of the case, the disallowance, imposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l receipt and not chargeable to tax. Before CIT(A), by way of additional ground, assessee pleaded that the Excise duty subsidy is a capital subsidy and therefore not liable to be taxed. CIT(A) has noted that no claim for the amount of Excise duty Subsidy as being capital receipt was made before the AO but however before CIT(A), an additional claim was raised for the claim of Excise duty Subsidy claiming it to be non taxable receipts. CIT(A) at para 4.2 of the order while denying the claim of the assessee noted that no claim was made before the AO and no reasons were furnished by assessee to demonstrate as to what prevented the assessee from raising such claim before the AO. He further noted that facts relating to Excise duty Subsidy were al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y subsidy are not available on record. He therefore, submitted that the CIT(A) was fully justified in denying the claim of the assessee. He thereafter submitted that if the claim of the assessee is allowed then the matter be remitted to AO for necessary verification as at present there is no finding of the authorities on the issue. He thus supported the order of CIT(A). 10. We have heard the rival submissions and perused the material available on record. The issue in the present ground is with respect to the claim of the assessee that the excise duty subsidy availed by it is capital receipt. It is an undisputed fact that the claim of excise duty subsidy being capital in nature was not made before the AO but was claimed through additional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue of lower authorities and considering the totality of the aforesaid facts, we are of the view that the issue raised in the present ground needs to be re-examined at the end of CIT(A). We, therefore, restore the issue back to the file of CIT(A) and direct him to decide the issue afresh in accordance with law. CIT(A) shall be free to call for such information and explanations as he deems fit to adjudicate the claim of the assessee. Assessee shall also be free to file such documents, explanations, submissions as it deems fit in respect of the claim. Needless to state that CIT(A) shall grant adequate opportunity of hearing to both the parties. Assessee is also directed to promptly furnish the required details called for by the authorities. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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