Appellate authority power under Section 250(5): additional grounds in support of a revised return may be examined and decided.

Under Section 250(5) of the Income-tax Act, 1961, the appellate authority may examine whether additional grounds urged in support of a revised return are admissible and decide them within the scope of the appeal. The Delhi HC held that the Tribunal was correct in directing the Commissioner (Appeals) to admit and adjudicate those grounds, because the appeal itself encompassed that procedural and legal examination. On that basis, the Court found that no separate question of law arose from the Tribunal's direction.

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Issues: Whether the appellate authority could examine the admissibility of additional grounds urged in support of the revised return and adjudicate upon them within the scope of Section 250(5) of the Income-tax Act, 1961, and whether any question of law arose.

Analysis: The appeal concerned the Tribunal's direction that the Commissioner of Income-tax (Appeals) should admit and decide the assessee's additional grounds. The Court held that the scope of the appeal included the appellate authority's power to examine the admissibility of grounds urged in support of the revised return and to decide the applicable provision of law under Section 250(5). On that basis, it found that the Tribunal's direction did not give rise to any question of law.

Conclusion: The additional grounds were within the appellate authority's consideration, and no question of law arose.

Ratio Decidendi: An appellate authority under Section 250(5) of the Income-tax Act, 1961 may examine the admissibility of additional grounds raised in support of a revised return and decide them within the scope of the appeal, unless a distinct question of law is shown to arise.

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