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October 2012

Appeal to CIT(A)/Tribunal: Power: A. Y. 2004- 05: CIT(A)/Tribunal have power to admit/ allow additional ground/claim not made in the return:

By K. B. Bhujle, Advocate
Reading Time 1 mins
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[CIT Vs. Pruthvi Brokers & Shareholders (P) Ltd.; 252 CTR 151 (Bom.)]

For the A. Y. 2004-05, in the return of income, the assessee had claimed deduction of Rs. 20,00,000/- in respect of payment of SEBI fees taking into account the provisions of section 43B of the Income-tax Act, 1961. Subsequently, the assessee found that the amount actually paid and allowable u/s. 43B was Rs. 40,00,000/-. As the time for filing revised return was over, the assessee made the claim for deduction of Rs. 40,00,000/- by a letter, in the course of assessment proceedings and also filed the relevant evidence.

The Assessing Officer disallowed the claim, relying on the judgment of the Supreme Court in Goetz (India) Ltd. Vs. CIT; 284 ITR 323 (SC). CIT(A) allowed the assessee’s claim and the same was upheld by the Tribunal. On appeal by the Revenue, the Bombay High Court upheld the decision of the Tribunal and held as under: “In an appeal before the CIT(A) and Tribunal, an assessee is entitled to raise additional grounds not merely in terms of legal submissions, but also additional claims not made in the return filed by it.”

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