SUNILKUMAR O KOCHHAR,MUMBAI vs. ACIT 19(3), MUMBAI

Per P.K. Bansal, Vice President

3. At the outset we noted that the assessee has taken ground No. 8 before us which reads as under: -

“8) On the facts and circumstances of the case, the C.I.T.(A) erred in not giving any finding to the additional ground of appeal which was submitted to the C.I.T.(A) on 09/01/2013 in the course of hearing and which runs as follows: - 1) On the facts and circumstances of the case, the appellant was not given opportunity of being heard to submit his reply Shri Sunilkumar O. Kochhar on the various reasoning as relied upon by the Assessing Officer in making addition of Rs.2,15,96,360/- being income from deemed dividend U/s. 2(22)(e) is made.”

4. After hearing rival submissions on this ground in our opinion, will have bearing on the decision of other grounds. We found that the assessee had taken this ground as an additional ground before the CIT(A) on 09.01.2013. The CIT(A) while adjudicating the appeal of the assessee has not decided the ground. Neither he has admitted nor rejected the said ground. If the assessee had taken a ground as additional ground, the CIT(A) is bound to give a finding whether he is admitting the ground or not. If the ground is admitted he is bound to decide the ground on merit treating this ground to be part of the main ground. In our view this additional ground taken by the assessee before the CIT(A) will have a bearing on the other grounds taken by the assessee before the CIT(A) and it will affect the decision of the CIT(A). We, therefore, in the interest of justice and fair play to both the parties set aside the order of the CIT(A) and restore the additional ground as well other grounds to the file of the CIT(A) with the direction that the CIT(A) should first decide the additional ground on merits in case he admits the additional ground. Once the additional ground is decided the other ground are also be decided afresh in accordance with law as this additional ground, in our opinion, will have a bearing on the other grounds taken by the assessee.