Law:

Section:

Section 254 of the Income-tax Act, 1961 - Appeal to appellate tribunal - Raising new/additional grounds - Assessee followed mercantile system of accounting - It incurred expenditure of Rs. 47,539 under sales promotion scheme during accounting period relevant to assessment year 1969-70 but claimed deduction of this sum in assessment year 1970-71 - Claim disallowed by AAC on the ground that it related to assessment year 1969-70 - Assessee sought permission from tribunal to raise this ground in an appeal pending before tribunal for assessment year 1969-70 - Whether permission rightly refused by tribunal - Held, on facts, no Facts The assessee, a public limited company, manufactured and sold cycles on a large scale and followed the mercantile system of accounting. It instituted a special scheme for giving awards and prizes to its dealers to boost up its sales and incurred an expenditure of Rs. 47,539 during the accounting period relevant to the assessment year 1969-70. This amount was not claimed as a deduction at the time of assessment for the assessment year 1969-70. However, the assessee made such a claim in the subsequent assessment year, i.e., 1970-71, which was disallowed by the AAC on the ground that this amount should have been claimed in the assessment year 1969-70 as the assessee was following the mercantile system of accounting. At the time when the AAC's order was passed, the second appeal filed by the assessee, for the assessment year 1969-70, was still pending before the Tribunal. The assessee sought permission from the Tribunal to raise an additional ground of appeal for the assessment year 1969-70 regarding the sum disallowed by the AAC in the assessment year 1970-71. The Tribunal, however, refused permission on the ground that the additional ground did not arise out of the AAC's order for the assessment year 1969-70. On reference : Held The power of the Tribunal to allow additional pleas and consequently additional evidence being taken had been given to do substantial justice between the parties. Therefore, although the claim for deduction was not raised before the ITO in the proceedings for the assessment year 1969-70 and consequently before the ,…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492