TMI Blog2021 (8) TMI 1183X X X X Extracts X X X X X X X X Extracts X X X X ..... the SEBI order holding the transaction in the said scrip to be genuine was sufficient enough for the assessee to raise a legitimate ground before the Ld. CIT(A) for claiming the Long Term Capital Gains earned as exempt. As rightly pointed out by the assessee it is settled law that the assessee is entitled to make a claim before the worthy CIT(A), for the first time. The decision of the Hon ble Apex Court in the case of Jute Corporation of India [ 1990 (9) TMI 6 - SUPREME COURT] and the decision of CIT v. Pruthvi Brokers Shareholders [ 2012 (7) TMI 158 - BOMBAY HIGH COURT] settles the said issue in favour of the assessee. CIT(A) directed to admit the additional ground raised by the assessee and thereafter adjudicate the same in accordance with law - ITA No. 1074/CHD/2019, ITA No. 1075/CHD/2019 - - - Dated:- 25-8-2021 - Shri Satbeer Singh Godara, Judicial Member And Smt. Annapurna Gupta, Accountant Member For the Assessee : Shri Nikhil Goyal, Adv., Shri Ashok Goyal, CA And Shri Pankaj Bhalla, CA For the Revenue : Smt. Meenakshi Vohra, Addl. CIT ORDER PER ANNAPURNA GUPTA, A.M. : The present appeals relate to different assessees and have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A)-2, Chandigarh erred in law facts in not admitting additional ground of appeal without any base reasons thereof Ld. Counsel for the assessee contended that the act of the Ld. CIT(A) in not admitting the additional grounds of appeal was wholly unjustified. Drawing our attention to the order of the Ld. CIT(A) dismissing the admission of the additional grounds at para 6 to 6.1.1 of his order, Ld. Counsel for the assessee pointed out that the reason for not admitting the additional grounds was primarily that it was raised after lapse of nearly one and half years after the appeal was filed and there was no substantial reason for the same. Ld. Counsel for the assessee contended that the facts were in fact to the contrary and there were valid reasons for raising the additional grounds before the Ld. CIT(A) which could not have been raised earlier. Ld. Counsel for the assessee pointed out that after the surrender made by the assessee of alleged bogus Long Term Capital Gain by way of filing a revised return, it so transpired that the final order of SEBI in the case of the scrip transacted in by the assessee, i.e., M/s Kailash Auto, was passed in which it was concluded th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l gains. Subsequently, the assesses filled a revised return on 23.10.2015. Thereafter, Assessment order was passed and the income of the assessee as per revised return and penalty proceedings u/s 274 r.w.s. 271(1)(c) was initiated separately. Appeal against the Penalty order was filed on 23.12.2016 before Commissioner of income Tax against penalty wrongly initiated by the Ld. AO u/s 271(1) (c). In the meanwhile. Final order of SEBI in case of M/s Kailash Auto was passed and it was concluded that there is no manipulation in the Scrip of M/s Kailash auto. Thus, all the earlier order are liable to be quashed. In view of the SEBI order, it was very obvious that Documents shown to the assessee were not showing the true scenario and it was half verified information. Thus, after taking all the _things_into consideration and after due yerification_of al all the documents Ld. Counsel of the Assessee raised the additional ground before the Ld. CIT on the basis of facts. Thus, it is very clear from the above sequence of events that the assessee couldn't have raised the additional grounds earlier as it was proved later that there was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d or when the assessment order was made....' or 'that the ground became available on account of change of circumstances or law,' does not curtail the ambit of the jurisdiction of the appellate authorities stipulated earlier. They do not restrict the new/additional grounds that may be taken by the assessee before the appellate authorities to those that were not available when the return was filed or even when the assessment order was made. The underlined observations in the above passage do not curtail the ambit of the jurisdiction of the appellate authorities stipulated earlier. They do not restrict the new/additional grounds that may be taken by the assessee before the appellate authorities to those that were not available when the return was filed or even when the assessment order was made. The sentence read as a whole entitles an assessee to raise new grounds/make additional claims :- if_the around so raised could not have been raised at that particular stage when the return was filed or when the assessment order was made if the around became available on account of change of circumstances or law The appellate authorities, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es Ltd. vs. CIT [1981] 5 Taxman 310 (P H HC) DCM Benetton India Ltd. us. CIT [2008] 173 Taxman 283 (Delhi HC) Amit P. Pandya vs. ACIT [2014] 50 taxmann. com 276 (Mumbai Trib.) CIT vs. Abhinitha Foundation (P) Ltd. [2017] 83 taxmann.com 100 (Madras HC) CIT vs. Gangappa Cables Ltd. reported in [1979] 116 ITR 778 (Andhra HC) 4. Ld. DR on the other hand supported the order of the Ld. CIT(A). 5. We have heard both the parties. We find merit in the contention of the Ld. Counsel for the assessee that the additional grounds raised by the assessee before Ld. CIT(A) were wrongly refused to be admitted by him. The assessee, we find, has suitably demonstrated before us the reason for revoking the surrender originally made before the Assessing Officer of Long Term Capital Gain as being on account of the scrip transacted in by the assessee having subsequently been found to be genuine by the order of the SEBI. The surrender no doubt was made on account of certain evidences collected during survey at the assessee s premises to the effect that the claim of Long Term Capital Gains on the sales of M/s Kailash Auto as exempt was bogus. Now the subsequent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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