TMI Blog2014 (6) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... y has all the powers which the original authority may have in deciding the questions before it subject to the restrictions or limitations if any prescribed by statutory provisions. In the absence of any statutory provision the appellate authority is vested with all the plenary powers which the subordinate authority may have in the matter. Revised Computation not accepted on wrong appreciation of facts – Held that:- CIT(A) failed to exercise his appellate jurisdiction u/s 250 of the Act – Relying upon Smt. Prabhavati S. Shah v. CIT [1998 (2) TMI 107 - BOMBAY High Court] - the powers conferred on the first appellate authority u/s 250(4) of the Act, being a quasi-judicial power, it is incumbent on him to exercise the same, if the facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Society are not tainted with commerciality and as the principle of mutuality applies, the ld. CIT(A) is at wrong to derecognize the claim of the Appellant. 2. The facts of the case are that the assessee, a Co-operative Housing Society, filed its return of income declaring total income of Rs.34,84,470/-. However, subsequently during the course of assessment proceedings, the assessee revised the computation of income claiming that receipts of transfer fee and TDR premium were exempt on the principle of mutuality and therefore not liable to tax. Accordingly, the assessee filed a revised computation before the Assessing Officer (hereinafter referred to as the AO) during the course of the assessment proceedings. The AO however relying on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 ITR 688 has observed that the power of the Appellate Commissioner is coterminous with that of the Income Tax Office and an appellate authority while hearing appeal against the order of the subordinate authority has all the powers which the original authority may have in deciding the questions before it subject to the restrictions or limitations if any prescribed by statutory provisions. In the absence of any statutory provision the appellate authority is vested with all the plenary powers which the subordinate authority may have in the matter. An assessee is entitled to raise not merely additional legal submissions before the appellate authorities but is also entitled to raise additional claims before them. The appellate authorities have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dence produced before him by the assessee. The Hon ble Bombay High Court in the case of Smt. Prabhavati S. Shah v. CIT (1998) 231 ITR 1 (Bom.) has held that the powers conferred on the first appellate authority under sub-section (4) of section 250 of the Act, being a quasi-judicial power, it is incumbent on him to exercise the same, if the facts and circumstances justify. It may be observed that though the discretion is vested with the appellate authorities to admit or reject the new/additional claim but the discretion in that regard is to be exercised fairly and justifiably so as to serve the interest of justice. 6. So far the observation of the ld. CIT(A) that the claim of the assessee even on merits was not admissible, It may be obs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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