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2023 (4) TMI 1247 - AT - Income TaxAdmission of additional ground before CIT(A) - powers of the appellate authorities including the Appellate Assistant Commissioner on entertaining an additional ground raise by assessee - additional ground of appeal on the new issue is not emanating from the assessment order and, therefore, it is dismissed by CIT(A) - HELD THAT:- The above understanding of the Ld.CIT(Appeals) is not correct. Any fresh claim by way of additional ground can be made by the assessee before the appellate authorities including the CIT(Appeals) and it is not only before the ITAT. We observed that the CIT(Appeals) misunderstood the decision of CIT vs. Jai Parabolic Springs Ltd. [2008 (4) TMI 3 - DELHI HIGH COURT] as in this case the assessee had raised an additional ground before the Tribunal even though there was no claim made in the return of income. The Tribunal considering the decision of the Supreme Court in the case of Goetze (India) Ltd. [2006 (3) TMI 75 - SUPREME COURT] admitted the additional grounds of appeal raised by the assessee. CIT(Appeals) over looked the decision of Jute Corporation of India Ltd. [1990 (9) TMI 6 - SUPREME COURT] which was referred to by the Hon’ble Delhi High Court in the very same judgment on the powers of the appellate authorities including the Appellate Assistant Commissioner on entertaining an additional ground raised by the assessee, wherein it has been held that the Appellate Assistant Commissioner should exercise his discretion in permitting or not permitting the assessee to raise an additional ground in accordance with law and reason. Therefore, we hold that the CIT(A) has all the powers to entertain the additional ground raised before him. Observation of the Ld.CIT(A) that the powers to entertain additional claim not made in the return of income is discretion of ITAT and not CIT(Appeals) is misplaced. In the additional ground Assessee contended by the assessee that it is entitled for deduction of Rs.105.94 crores out of its business income on account of excess interest credited in the books of account and offered for tax is no now irrecoverable. These contentions of the assessee have to be examined by the Assessing Officer as the said claim was not made before the AO nor considered by the CIT(Appeals) which was raised before him as on additional ground of appeal - Decided in favour of assessee for statistical purpose.
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