TMI Blog2008 (4) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellate Tribunal (for short as 'Tribunal'), Delhi Bench 'G' in ITA No.707/Del/2004 relevant for the assessment year 1990-91 vide which the appeal filed by the Revenue was dismissed. 2. The facts entailing the present appeal are that the assessee is engaged in the business of manufacture and marketing of springs and springs leaves required for the automobile industry. Return of income for the year under consideration was filed by the assessee on 30.12.90 declaring net loss at Rs. 4,40,36,000/-. Return was processed under section 143(1) of the Act. Subsequently, notice under section 143(2) of the Act was issued. The loss under the normal provisions of the Act was computed at Rs. 4,27,63,353/- inter alia by making several additions/disal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me for the assessment year 1990-91, the same is not allowed.' 7. Being aggrieved from the above assessment, the Assessee preferred an appeal before CIT (A). Appeal of the Assessee was allowed by inter alia holding that the Assessing Officer erred in disallowing the expenditure on the sole ground that no claim for deduction of the amount was made in the return of income. 8. Aggrieved thereby, the Revenue filed appeal before Tribunal. The appeal of the Revenue was dismissed and the order of the CIT (A) was confirmed by the Tribunal. 9. Aggrieved by the order of the Tribunal, the Revenue filed the present appeal before this Court. 10. Thus, the principal question that arises for determination in this appeal is 'Whether the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal is that if no claim for deduction of the amount was made in the return of income then deduction would not be allowed. 13. Section 254 of the Act says that the Appellate Tribunal may, after giving both the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit. 14. Reference may be made to National Thermal Power Co. Ltd. v. Commissioner of Income Tax [1998] 229 ITR 383 (SC), where the Supreme Court observed that:-'The power of the Tribunal in dealing with appeals is thus expressed in the widest possible terms. The purpose of the assessment proceedings before the taxing authorities is to assess correctly the tax liability of an assessee in accordance with law. We do not see any reason to res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stifying the raising of a new plea in an appeal and each case has to be considered on its own facts. The Appellate Assistant Commissioner 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 Assistant Commissioner should exercise his discretion in permitting or not permitting the assessee to raise an additional ground in accordance with law and reason. The same observations would apply to appeals before the Tribunal also.' 17. In Goetze (India) Limited v. Commissioner of Income Tax (2006) 284 ITR 323 (SC) wherein deduction claimed by way of a letter before Assessing Officer, was disallowed on the ground that there was no provision under the Act to make ..... X X X X Extracts X X X X X X X X Extracts X X X X
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