Fresh tax plea on discontinued business receipts cannot be raised for the first time in appeal.

Section 176(3A) could not be invoked for the first time in appeal to fasten tax liability on a receipt after discontinuance of business, because its application depended on foundational facts that had not been established on the record. Where the Department had not raised the point before the Assessing Officer or the Tribunal, a fresh contention of this nature was not permitted at the appellate stage. The plea under section 176(3A) was therefore not entertainable, and the impugned order required no interference.

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Issues: Whether the Revenue could invoke section 176(3A) of the Income-tax Act, 1961 for the first time in appeal to fasten tax liability on the assessee on receipt of a sum after discontinuance of the business.

Analysis: The Department had not raised the plea based on section 176(3A) before the Assessing Officer or the Tribunal. The applicability of that provision depended on foundational facts as to discontinuance of the business and the nature of the receipt, and no such case had been made out on the record. A new contention of this kind could not be permitted to be advanced for the first time in the appeal.

Conclusion: The plea under section 176(3A) was not entertainable, and the impugned order called for no interference.

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