Appellate Tribunal may consider a new pure question of law on facts already on record to determine tax liability correctly.

An appellate Tribunal has jurisdiction to entertain an additional pure question of law arising from facts already on record, even if it was not raised before the assessing authority or the first appellate authority, where it is necessary for correct determination of tax liability. The Tribunal's power is of wide amplitude and is not confined to grounds taken below when the plea is bona fide and the relevant facts are already recorded. The Tribunal's refusal to examine the additional ground on merits was unsustainable, and the matter was remitted for fresh consideration on that issue.

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Issues: Whether the Tribunal had jurisdiction to entertain and decide an additional ground of law, not raised before the assessing authority or the first appellate authority, when the relevant facts were already on record and the issue bore on the tax liability of the assessee.

Analysis: The power of the appellate Tribunal is of wide amplitude, and it is not confined merely to grounds taken before the first appellate authority. Where the additional contention is purely a question of law arising from facts already found and recorded in the assessment proceedings, there is no reason to prevent the assessee from raising it at the Tribunal stage if doing so is necessary for correctly determining tax liability. The principle is consistent with the settled appellate power to permit an additional ground when the facts are available on record and the plea is bona fide.

Conclusion: The Tribunal was bound to examine the additional legal ground on merits, and its refusal to do so was unsustainable.

Final Conclusion: The revision was allowed, the Tribunal's order was set aside to the extent it declined to consider the additional ground, and the matter was remitted to the Tribunal for fresh consideration on merits.

Ratio Decidendi: An appellate Tribunal has jurisdiction to entertain a new question of law arising from facts already on record if the question affects the correct determination of tax liability, even though it was not raised earlier before the lower authorities.

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