TMI Blog2008 (11) TMI 682X X X X Extracts X X X X X X X X Extracts X X X X ..... in the original orders of assessment, in an appeal filed against the order passed while redoing the original assessment. In our opinion, there appears to be some typographical error while framing the question of law. It should have been, whether on the facts and circumstances of the case the assessee was entitled to raise the additional ground before the first appellate authority for the first time. The facts, as narrated by the Tribunal, in its order are as under. The assessee is the proprietrix of Madhu Steel Co., dealing business in iron and steel. She is also a partner in M/s Madhu Trading Agencies, also dealing business in iron and steel. For the asst. yr. 1987-88, the assessee had filed her original return on 15th Feb., 1988 u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d subsequently, the time-limit for completing the assessment does not get extended by one year and as such, the assessing authority should have completed the assessment on or before 31st March, 1990. The first appellate authority has accepted the additional ground raised by the assessee, keeping in view the observations made by this Court in the case of Eapen Joseph vs. CIT (1987) 64 CTR (Ker) 324 : (1987) 168 ITR 26 (Ker) and also the observations made by the Bombay High Court in Inventors Industrial Corporation Ltd. vs. CIT (1991) 96 CTR (Bom) 206 : (1992) 194 ITR 548 (Bom) and accordingly has come to the conclusion that the order passed by the assessing authority is barred by limitation. The Revenue, being aggrieved by the said order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 31(3)(a) of the Indian IT Act, 1922 which is almost identical to s. 251(1) (a). The Court held as under (at p. 229) : If an appeal lies, s. 31 of the Act describes the powers of the AAC in such an appeal. Under s. 31 (3)(a), in disposing of such an appeal, the AAC may, in the case of an order of assessment, confirm, reduce, enhance or annul the assessment; under cl. (b) thereof he may set aside the assessment and direct the ITO to make a fresh assessment. The AAC has, therefore, plenary powers in disposing of an appeal. The scope of his powers is coterminous with that of the ITO. He can do what the ITO can do and also direct him to do what he has failed to do. The above observations are squarely applicable in the interpretation of s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd (P) Ltd. (1969) 74 ITR 254 (Guj) and CIT vs. Cellulose Products of India Ltd. (1985) 44 CTR (Guj)(FB) 278 : (1985) 151 ITR 499 (Guj)(FB)]. Undoubtedly, the Tribunal will have the discretion to allow or not allow a new ground to be raised. But, where the Tribunal is only required to consider a question of law arising from the facts which are on record in the assessment proceedings we fail to see why such a question should not be allowed to be raised when it is necessary to consider that question in order to correctly assess the tax liability of an assessee . 13. In the instant case, as we have noticed earlier, while narrating the assessee s representation for the first time had raised an additional legal issue, which was not taken b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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