TMI Blog1986 (6) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... onal ground by admitted for consideration as this ground had been taken shortly after the order of the Tribunal for the immediately preceding year, namely, assessment year 1977-78 was passed in which the Tribunal held that out of interest claimed by the assessee in that year of Rs. 8,77,721, Rs. 3,49,649 related to the assessment year 1978-79. It was stated that in the said order of the Tribunal dated 6-4-1985 in paragraph 34 the Tribunal mentioned as under : "34. We do not agree that with reference to all these realisations, the assessee's case is governed by clauses (4) and (5) of section 3 of the Equalisation Fund Act as was canvassed by the learned departmental representative before us. We, however, find that the interim order relatin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... balance of the amount of Rs. 3,47,659 it was held that the amount pertained to the assessment year 1978-79. Shortly after the receipt of this order of the Tribunal the assessee, who by this time had not claimed this amount before the authorities below for being allowed against the profits of this year, claimed this amount before the Tribunal as the appeal of the assessee for the assessment year 1978-79 was pending before the Tribunal. Thus, the case of the assessee is that the assessee never knew earlier that a portion of the amount claimed in the assessment year 1977-78 would be held by the Tribunal to be relevant to the assessment year 1978-79 and the assessee was under a bona fide belief that the whole of the amount in the assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gued relying on the said decision of the Tribunal that the claim made in the additional ground now filed fell outside the subject-matter of appeal as the relevant issue was never raised before the authorities below. Reliance was also placed on the following decisions - Panchura Estate Ltd v. Government of Madras [1973] 87 ITR 698 (Mad.), CIT v. Steel Cast Corpn. [1977] 107 ITR 683 (Guj), Hukumchand Mills Ltd. v. CIT [1967] 63 ITR 232 (SC) and CIT v. Mahalakshami Textile Mills Ltd. [1967] 66 ITR 710 (SC). Reliance was also placed on the decision of the Hon'ble Supreme Court in the case of Addl. CIT v. Gurjargravures (P.) Ltd. [1978] 111 ITR 1. It has been argued by the departmental representative that the issues are fully settled by the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal by making an application for the addition of a ground in the memorandum of appeal. The claim was scale down to Rs. 8,086 because the assessee had recovered an amount of Rs. 10,000. The Tribunal admitted the additional point and allowed the claim of the assessee. On a reference : Held, that the Tribunal was justified in permitting the assessee to urge the additional ground and allowing the amount of Rs. 8,086 as bad debt." It was argued that in this case also a sum was claimed as bad debt in the assessment year 1965-66. The Tribunal ultimately held the same relevant the assessment year 1966-67 was already disposed of by the AAC. The assessee had not made this claim in the assessment year 1966-67 before the authorities below. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Cal.), CIT v. Sri Rajagopal Transports (P.) Ltd. [1983] 144 ITR 573 (Mad.), CIT v. Madras Industrial Investment Corpn. Ltd. [1980] 124 ITR 454 (Mad.) and P. R. Mukherjee v. CIT [1979] 116 ITR 554 (Cal.) 5. It was also argued that the Tribunal had the authority to adjust the tax liability of the assessee in the light of its finding. Thus, the Tribunal in view of its appellate order for the assessment year 1977-78 had the authority to adjust the correct liability of the assessee for the assessment year 1978-79 as well according to its earlier finding. On this account, the Tribunal should admit the additional ground in the peculiar facts of the case. Reliance was placed in this connection on the following case laws-CIT v. S. Nelliappan [19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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