1986 (6) TMI 53 - AT - Income Tax

Summary

Issues:
Admission of additional ground of appeal for deduction of interest under the Levy Sugar Price Equalization Fund Act, 1976 for the assessment year 1972-73.

Detailed Analysis:

1. The assessee filed an additional ground of appeal seeking the deduction of interest under the Levy Sugar Price Equalization Fund Act, 1976 for the assessment year 1972-73. The Tribunal had previously allowed a portion of the interest claimed by the assessee for the assessment year 1977-78, holding that a part of it related to the subsequent year. The assessee argued that they were unaware of this apportionment earlier and filed the additional ground immediately after becoming aware of the Tribunal's decision.

2. The departmental representative opposed the admission of the additional ground, citing that it was not raised before the lower authorities or in the return of income. Reference was made to a decision by the Tribunal Delhi Bench and various court decisions to support the contention that such claims outside the subject-matter of appeal should not be entertained.

3. The assessee argued that the decision of the Allahabad High Court in a similar case supported the admission of additional grounds if the facts were identical. They highlighted a case where the High Court allowed a deduction claimed in a subsequent year after the Tribunal's decision in the previous year. The assessee contended that the Tribunal should follow this precedent.

4. It was contended that the Tribunal had the authority to consider any point related to the subject-matter of appeal. The assessee had already raised an issue regarding interest deduction, and the claim for further deduction was an extension of the same issue. The Tribunal was urged to consider the claim based on previous court decisions supporting such actions.

5. The assessee argued that the Tribunal had the power to adjust the tax liability based on its findings in the previous year. They cited various court decisions to support the contention that the Tribunal should admit the additional ground considering the peculiar facts of the case.

6. Legal precedents were cited to support the argument that purely legal pleas could be raised at any stage during the proceedings.

7. The Tribunal considered the arguments and agreed with the assessee that the issue was covered by a decision of the Allahabad High Court in a similar case. The Tribunal found the facts in the present case to be identical to the previous case and admitted the additional ground of appeal for consideration by the Commissioner (Appeals) based on the High Court's decision.

8. The Tribunal allowed the appeal in part, referring the issue of the additional ground of appeal to the Commissioner (Appeals) for further consideration in line with the Tribunal's decision for the assessment year 1977-78.