Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

ADDITIONAL EVIDENCE BEFORE APPELLATE AUTHORITIES UNDER INCOME TAX ACT 1961

Income Tax - Direct Tax Code - DTC - By: - Mr. M. GOVINDARAJAN - Dated:- 16-10-2015 - Appeal provisions Section 250 of the Income Tax Act, 1961 ( Act for short) deals with the procedure in appeal. Section 250 (1) of the Act provides that the Deputy Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals) shall fix a day and place for the hearing of the appeal, and shall give notice of the same to the appellant and to the Assessing Officer against whose order the appeal is prefer .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

late authorities in admitting the new evidence and the duty imposed on them are analyzed in the following case laws: In Jute Corporation of India Limited V. Commissioner of Income Tax - 1990 (9) TMI 6 - SUPREME Court the Supreme Court while dealing with the powers of the appellate authority, observed that the appellate authority has all the powers which the original authority may have in deciding the question before it subject to the restrictions or limitations, if any, prescribed by the statuto .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e assessee in seeking modification of the order of assessment passed by the Income Tax Officer. The Supreme Court further observed that there may be several factors justifying the raising of a new plea in an appeal and each case has to be considered on its own facts. The Appellate authority must be satisfied that the ground raised was bona fide and that the same could not have been raised earlier for good reasons. The appellate authority should exercise his discretion in permitting or not permit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eals) several issues were raised by the assessee but the said interest amount was not challenged. The assessee has not challenged the same before the Tribunal also. However later he raised additional grounds based on the decisions of two tribunals and contended that interest earned before setting up of business was not taxable as income. The Supreme Court held that the Appellate authority must be satisfied that the ground raised was bona fide and that the same could not have been raised earlier .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eld that the Appellate authority is entitled to admit new grounmds or evidence either suo motu or at the intimation of the parties. If he is acting on being invited by the assessee then there must be some ground for admitting new evidence in the sense that there must be some explanation to show that the failure to adduce earlier the evidence sought to be adduced before the Appellate Authority was not willful and unreasonable. In Ramco Cements Limited V. Deputy Commissioner of Income Tax - 2014 ( .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

isement expenses and in the return of income filed, the appellant omitted to claim the said expenditure as deduction under Section 37(1) of the Act. The Commissioner (Appeals) refused to entertain the additional grounds of appeal and proceeded to decide the appeal on the merits on the other issues raised holding that the assessee has to explain that the omission to file the grounds originally was not willful and unreasonable. The appellant, aggrieved by this order, filed appeal against this orde .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

herefore the Commissioner (Appeals) ought to have considered the additional grounds raised in exercise of Section 250(2) of the Act; The reasoning of the Commissioner (Appeals) that the fact is raised belatedly and it is not a question of law, is not correct; The issue is in relation to the determination of the total income and the tax liability thereon, based on the details furnished by the assessee in the balance sheet. However in the return of income the assessee failed to make the claim for .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

uction of expenditure under Section 37(1) at the time of filing of return of income but he failed to do and that cannot be made good at the appellate stage; If a deduction is not claimed before the assessing authority and there was no consideration by the Assessing Officer on such deduction, the same cannot be urged before the Commission (Appeals) without filing a revised return; The High Court analyzed the provisions of Section 250 of the Act. The High Court held that a reading of Section 250 i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o the issue as to whether such a omission was willful or unreasonable. The High Court held that the assessee in this case has bona fide shown all the expenditure in the balance 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 inadvertence, additional grounds was raised in the appeal stage by the assessee. Section 250(5) of the Act provides for allowing the appellant to raise such an additional ground and it i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing 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 reasonable. The High Court answered the question of law in favor of the appel .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version