Appeal to High Court: Section 260A of Income-tax Act: A.Y. 1997-98: Power of High Court: Court has power to consider new question of law not formulated at the time of admission of the appeal.

The assessee had filed an appeal before the High Court u/s.260A of the Income-tax Act. When the appeal was taken up for the final hearing, the assessee sought consideration of an additional question whether reopening of the assessment was maintainable. The Madras High Court allowed the assessee’s request and held as under:

(i) The issue of notice u/s.148 in the case of the assessee was dealt with by the Tribunal in extenso. The issue relating to the validity of reassessment was contested by the parties before the Tribunal.

(ii) Therefore, merely because the question of reassessment was not specifically formulated as a substantial question of law while entertaining the appeal, it could not be held that the question should not be allowed to be agitated by formulating a substantial question of law.

(iii) The assessee was justified to seek for framing the issue of notice as one of the substantial questions of law to be considered.