Additional ground in a timely tax appeal can be entertained despite expiry of the filing period, if amendment rules permit.

Where an income-tax appeal is filed within limitation, the Tribunal cannot refuse an additional ground solely because the ground is sought after the 60-day period under section 253 of the Income-tax Act, 1961. The Rajasthan High Court held that, once the appeal is in time, the memo of appeal may be amended in accordance with established practice and procedure, and the Tribunal must consider the request on its merits. The Tribunal's contrary approach was held erroneous, the assessee was permitted to raise the additional ground, the order was set aside, and the matter was remitted for fresh decision after hearing both sides.

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Issues: Whether the Tribunal was justified in refusing to permit the assessee to raise an additional ground on the sole premise that the ground was sought to be raised after the period prescribed under section 253 of the Income-tax Act, 1961.

Analysis: The appeal had been filed within limitation. The refusal by the Tribunal rested only on the view that an additional ground could not be entertained after expiry of the 60-day period under section 253. The Court held that this approach was erroneous and that, once an appeal is filed in time, the memo of appeal may be amended in accordance with established practice and procedure. The matter was therefore fit to be sent back for fresh consideration by the Tribunal.

Conclusion: The assessee's request to raise the additional ground was allowed, the Tribunal's order was set aside, and the matter was remitted to the Tribunal for fresh decision after hearing the parties.

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