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2006 (3) TMI 136 - HC - Income TaxValidity of the assessment order - Appeal To Appellate Tribunal - Admission of additional grounds - Jurisdiction - proceedings so initiated u/s 142(2A) - barred by limitation - HELD THAT:- It cannot be disputed that the CIT(A) had jurisdiction to examine those four grounds had it been raised before him in appeal even in the first round. We thus cannot subscribe to the approach and the manner in which the Tribunal allowed the assessee to raise additional grounds in appeal for the first time and then deciding the appeal on those grounds by not only setting aside of the order of the CIT(A) but even proceeding to annul the order of the Assessing Officer also. Such approach is neither legal, nor proper. It only exhibits the anxiety of the Tribunal to decide the appeal on the merits even on those points which did not arise for decision out of the order of the CIT(A) . In other words, instead of concentrating on the issues already decided by the CIT(A), the Tribunal only concentrated on those grounds which had not been taken before the CIT(A) and then answered them in favour of the assessee by completely annulling the whole assessment. There would have been no prejudice caused to either party if the case had been remanded to the CIT(A) once the prayer to raise additional grounds was allowed by the Tribunal in favour of the assessee. When a litigant has a right to seek adjudication on a particular point from one more authority (as in this case CIT(A) and again acquire a right to reiterate the challenge before the higher appellate authority (such as Tribunal) in case if the challenge is decided against by the first appellate authority, then in such event, there is no justifiable reason as to why a litigant is deprived of such an opportunity. We, therefore, do not agree to such approach resorted to by the Tribunal and hence, we set aside the impugned order. Hence, we answer only additional question of law framed in favour of the Revenue and against the assessee (respondent). As a result, the appeal succeeds and is hereby allowed. The impugned orders of the Tribunal is set aside, so also that of the of CIT(A) which was the subject-matter of appeal before the Tribunal in an appeal filed by the assessee.
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