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Income Tax Appellate Tribunal, “C’’ BENCH: BANGALORE
Before: SHRI CHANDRA POOJARI & SHRI GEORGE GEORGE K.
PER CHANDRA POOJARI, ACCOUNTANT MEMBER:
This appeal by assessee is directed against the order of CIT(A) dated 4.10.2019. The assessee has raised following grounds of appeal:-
1. “That the order of the Commissioner of Income Tax (Appeals) in so far is prejudicial to the interests of the appellant is bad and erroneous on the facts and circumstances of the case.
M/s. VSL Steels Limited, Bangalore
Page 2 of 4 2. That the learned Commissioner of Income Tax (Appeals) erred in law and on facts in holding that the reassessment made u/s 143(3) r.w.s 147 is valid even though the notice u/s 148 was not issued based on the reasons recorded by the learned Deputy Commissioner of Income Tax, Bellary.
3. That the learned Commissioner of Income Tax (Appeals) erred in law and on facts in holding that the reassessment is valid even though the additions made in the assessment order has no relation to the reasons recorded by the learned Deputy Commissioner of Income Tax, Bellary.
Each of the above grounds is without prejudice to one another, the appellant craves the leave of the Hon'ble Income Tax Appellate Tribunal, Bangalore to add, delete, amend or otherwise modify all or any of the grounds of appeal either before or at the time of hearing of this appeal.”
2. The assessee also filed following additional grounds along with petition.
“The appellant herein seek seeks the leave of the Hon'ble Income Tax Appellate Tribunal to file the following additional grounds. I. That the learned DCIT, Bellary erred in law and on facts in recording a reason that the income has escaped assessment merely on the basis of the information received from Income Tax Officer, Ward 9(1), New Delhi and the reasons recorded do not satisfy the tests of being valid reasons.
2 That the learned DCIT, Bellary erred in law and on facts in forming the belief that income has escaped assessment without even making a preliminary enquiry to prima facie satisfy himself of the correctness of alleged information received from the Income Tax Officer, Ward 9(1), New Delhi and in recording the reasons hastily within a day of receiving the said information.
That the approval granted by learned Commissioner of Income Tax, Gulbarga, is without application of mind and hence, bad in law.
4 That the learned DCIT Bellary erred in law and on facts in reopening an assessment made u/s 153C of the Act by resorting provisions of S. 147 of the Act.
That the learned lower authorities erred in law and on facts in adding a of Rs.80 80,000 even though the above addition stands deleted in view of the order of learned Commissioner of Income Income-tax (Appeals) XII, New Delhi wherein the original 147 order in which the addition of Rs 80,80,000 was made was quashed.
M/s. VSL Steels Limited, Bangalore Page 3 of 4 It is submitted that each of the above grounds are purely legal grounds. In fact, additional grounds no. 1 and 2 above were raised before Commissioner of Income Tax (Appeals) in a different form — vide ground no.
3. The additional grounds bring the issue into a clear focus. By oversight, the appellant did not raise the above grounds in the appeal memo filed before the Hon'ble Tribunal. Similarly, the additional ground no.4 was raised as an additional ground no. 6 before the learned Commissioner of Income Tax (Appeals). Please see para 3.1 at page no. 3 of CIT(A) order. As regards Additional Grounds # 3 and 5 are concerned, it is submitted that they are purely legal grounds and can be disposed off on the basis of material on record. All the. Above additional grounds can be disposed off on the basis of the materials already available on records. The appellant submits that the above additional ground may kindly be admitted in view of the decisions of the Hon'ble Supreme Court in:
a) CIT Vs National Thermal Power Corporation (229) ITR 383 h) Jute Corporation of India Ltd Vs CIT (187) ITR 688
Hence, it t is prayed that the above additional grounds be admitted and be decided on merits in the interest of equity, justice and good conscience”
3. The Ld. A.R. submitted that these additional grounds inadvertently not raised on earlier occasion before CIT(A) and all the facts relating to these issues already on record and these additional grounds may be admitted in the interest of justice. In our opinion, there is merit in the argument of Ld. A.R. and for adjudication of these additional grounds, there is no necessity of investigation of any fresh facts, otherwise on record. Accordingly, these additional grounds are admitted for adjudication. These are additional grounds filed before the Tribunal only. Ld. CIT(A) have no occasion to examine these issues. Accordingly, after admission of additional grounds, we remit these additional grounds to the file of Ld. CIT(A) for his consideration. The Ld. CIT(A) is directed to adjudicate these additional grounds after giving fair opportunity of hearing to the M/s. VSL Steels Limited, Bangalore
Page 4 of 4 assessee. Since these additional grounds raised by the assessee goes to the root of the matter, at this stage, we refrain from going into the main grounds raised by assessee, which are kept open with the liberty to assessee to agitate the same at appropriate stage, if so advised.
4. In the result, the assessee’s appeal is partly allowed for statistical purposes. Order pronounced in the open court on 26th May, 2022