ASHOK KUMAR SINGH,LUDHIANA vs. INCOME TAX OFFICER, WARD III(2), LUDHIANA

The assessee through the various grounds of appeal has challenged the sustenance of addition of Rs. 41,50,000/- under section 69A of the Act.

During the course of hearing, the Ld. AR submitted that during the appellate proceedings before the Ld. CIT(A), the assessee has sought permission to raise following additional grounds of appeal:

“That the assessment order is against law and facts on the file in as much as the initiation of proceedings u/s 148 was not as per law and are invalid.

2. That the assessment order is against law and facts on the file in as much as the initiation of proceedings u/s 148 was on account of change of opinion and are, therefore, invalid.” 4. It was submitted that these grounds were purely legal grounds and the assessee had placed reliance on the decision of Hon’ble Supreme Court in case of National Thermal Power Corporation Ltd. Vs. CIT 229 ITR 383. It was submitted that the Ld. CIT(A) has failed to admit the additional grounds of appeal which are purely legal in nature and goes to the root of the proceedings so initiated by the AO. It was further submitted that there is no dispute that the assessee has sought permission to raise aforesaid additional grounds of appeal as apparent from Para 6 of the impugned order. However the Ld. CIT(A) failing to appreciate the prayer so made. It was accordingly submitted that the additional ground so raised by the assessee be directed to be admitted and the matter may accordingly be set aside to the file of the Ld. CIT(A).

The Ld. DR is heard, who has relied on the order of the lower authorities.

After hearing both the parties and considering the material available on the record, we find that these are purely legal ground which have been sought to be raised by the assessee before the Ld. CIT(A). However in absence of any findings either admitting or rejecting the admission of the grounds so sought to be raised, the Ld. CIT(A) has proceeded to decide the matter on merits of the case. Considering the fact that these are purely legal grounds, the same are hereby admitted and the matter is set aside to the file of the Ld. CIT(A) to examine the said grounds of appeal and decide the same as per law. In view of the above, the other grounds raised on merits of the addition so made by the AO and sustained by the Ld. CIT(A) are also set aside to the file of the Ld. CIT(A) to decide the same afresh as per law after providing reasonable opportunity to the assessee.

In the result, appeal of the Assessee is allowed for statistical purposes.