TMI Blog2006 (8) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... itional ground of appeal, were already on record and secondly on the merits, the issue sought to be raised had already been decided by the Tribunal in favour of the assessee for other years. We find merit in the contention raised by learned counsel for the assessee and accordingly, set aside the order passed by the Tribunal and permit the assessee to raise the additional ground of appeal, mentioned above. Procedurally, the course would have been that the matter is required to be remitted back to the CIT(A) for consideration of the additional ground of appeal being permitted to be raised by the assessee. In view of our discussions and following the dictum of the law laid down by this court in Abhishek Industries' case [ 2006 (8) TMI 123 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue before the Tribunal? 3. Briefly, the facts are that the assessee filed its return of income as nil and declared income of Rs. 96,66,339/- under section 115JA of the Income-tax Act, 1961 (for short, the Act ) on November 28, 1997, which was processed under section 143(1) of the Act on March 30, 1998. At the time of filing of return, the assessee appended a note with computation of income in the return, the relevant part of which is extracted as under: The company has received sales tax subsidy in the form of sales tax exemption granted by the Punjab State Government vide its Notification No. GSR/65/P.A.46/48/SS/27, 10.A and 30.A/AMD(1)/92 dated September 30, 1992. This being directly linked to fixed capital investment, is in the natur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he relevant observations in National Thermal Power Co. Ltd.'s case [1998] 229 ITR 383 (SC) are extracted below: Under section 254 of the Income-tax Act, 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. 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. If, for example, as a result of a judicial decision given while the appeal is pending before the Tribunal, it is found that a non-taxable item is taxed or a permissible deduction is denied, we do n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 7. As per the above judgments, the only pre-condition for permitting an assessee to raise the additional ground is that the request should be reasonable. In our view, the request made by the assessee for raising additional ground of appeal in the present ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... additional issue raised therein has been considered on the merits by the authorities below, guidance to that effect is available in the judgment of the hon ble the Supreme Court in Jute Corporation of India Ltd. S case [1991] 187 ITR 688 in the following terms: The next question which arises for consideration now is as to what order should be passed in the present circumstances. In view of the findings recorded by us, ordinarily, we should direct the High Court to call for the statement of case from the Tribunal and thereupon decide the matter afresh, but this procedure would be time consuming. Since we have already discussed the correct position in law, we do not consider it necessary to follow the usual procedure. Since the view taken by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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