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2021 (1) TMI 1117 - AT - Income TaxCorrect head of income - Rental receipts - assessable as ‘Income from house property’ OR ‘business income’ - HELD THAT:- As the assessee has itself declared the very kind of receipt derived in the subsequent assessment years under the head ‘business income’ only and therefore, it does not dispute the lower authorities action under challenge which has been the subject matter above extracted twin grounds. And more so, in view of hon’ble apex court’s decision in Chennai Properties & Investment Ltd. [2015 (5) TMI 46 - SUPREME COURT] and tribunal’s decision in assessee’s own case for A.Y. 2010-11 dated 11.7.2016. We decline the assessee’s above two substantive grounds in foregoing terms therefore. Admission of assessee’s additional ground - HELD THAT:- We are of the opinion that the tribunal’s jurisdiction continues right from filing of the appeal till final disposal u/s 254 of the Act. Their lordships landmark judgement in NTPC [1996 (12) TMI 7 - SUPREME COURT] has clarified that this second appellate jurisdiction has to be taken in widest than in a narrower sense. We make it clear the hon’ble jurisdictional high court’s decision (supra); even if taken as directly dealing with the issue, came much prior in time. We thus go by the judicial hierarchy to decline the Revenue’s objections regarding admission of asssessee’s additional ground. We also quote this tribunal’s decision All Cargo Global Logistics Ltd. Vs. DCIIT [2012 (5) TMI 466 - ITAT MUMBAI] that we can very well entertain and admit an additional ground to determine the correct tax liability of an assessee provided the relevant facts are already on record. Higher and secondary education cess paid - eligible deduction u/s 37 r.w.s. 40(a)(ii) while computing income under the head ‘profits and gains of business /profession’ - HELD THAT:- We hold that the asssessee’s paper book running clearly demonstrate that it had itself added back the education cess amount suo moto. Its further argument that we have to go by hon’ble apex court’s decisions dealing with central excise law also does not find favour with us in view of hon’ble Bombay high court’s decision in Sesa Goa Ltd.[2020 (3) TMI 347 - BOMBAY HIGH COURT] specifically dealing with this plea onwards thereby concluding that “a cess under the provisions of the Act is not to be taken as “tax” for the purpose of s.40(a)(ii) disallowance”. Therefore we accept assessee’s claim seeking to allow education cess and direct the Assessing Officer to finalise the consequential computation as per law. The assessee’s instant additional substantive ground is allowed.
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