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2014 (11) TMI 447 - HC - Income TaxWhether the Tribunal is right in rejecting the additional grounds of appeal filed by the assessee with regard to market development expenses - Held that:- The assessee has failed to claim an expenditure expended on account of market development (advertisement) expenses in the return of income - the assessee has bonafide shown all the expenditure in the balance sheet of the company as stated in the Annual printed report, but the claim was not made in the returns - Noticing the omission, which was due to inadvertance, additional ground was raised in the appeal stage by the assessee - Section 250(5) of the Income Tax Act provides for allowing the appellant to raise such an additional ground and it is for the CIT(A) to state that the omission to raise additional ground was not willful or unreasonable –CIT(A) has erroneously thrown the onus on the assessee to explain the omission as not willful or unreasonable - The assessee has given certain reasons with records to show that it was a bona fide claim, but out of inadvertance it was not stated in the return of income - this claim of the assessee is not willful and the additional ground raised by the assessee cannot be termed as unreasonable. The Act does not contain any express provision preventing the assessee from raising additional grounds in appeal and there is also no provision in the Act restricting the Appellate Authority to entertain such additional ground in the appeal - In the absence of statutory bar, the Appellate Authority is vested with the power, which is co-terminus with that of the Original Authority, to allow the assessee to raise additional ground, if the same is bona fide and not willful or unreasonable - the plea of bonafide omission is acceptable - The additional grounds were raised before the first Appellate Authority with reasons – CIT(A) failed to exercise the discretion vested in him in accordance with law and reason – thus, the order of the Tribunal is set aside and the matter is remitted back to the CIT(A) - Decided in favour of assessee.
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