Additional ground at Tribunal stage admitted, with the deduction issue remitted for fresh appellate adjudication.

An additional ground of appeal may be admitted at the Tribunal stage even if it was not raised before the lower authorities or in the return, where binding jurisdictional High Court authority applies on materially identical facts. Because the point had not been examined by the Commissioner (Appeals), the Tribunal remitted the issue for fresh adjudication at that stage, also noting its earlier view for the preceding assessment year. The effect was limited to admission of the additional ground and consequential remand; the substantive deduction claim remained open for decision by the first appellate authority.

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Issues: Whether an additional ground of appeal, not raised before the lower authorities or in the return, could be admitted at the Tribunal stage and, if admitted, whether the matter should be sent back for consideration by the first appellate authority.

Analysis: The Tribunal held that the controversy was covered by binding authority of the jurisdictional High Court on facts materially identical to the present case. On that footing, it accepted that the assessee could raise the additional ground before the Tribunal notwithstanding its omission earlier. Since the point had not been examined by the Commissioner (Appeals), the Tribunal considered it appropriate to remit the issue for decision at that stage, with reference to the Tribunal's earlier view for the preceding assessment year.

Conclusion: The additional ground was admitted, and the matter was remitted to the Commissioner (Appeals) for adjudication.

Final Conclusion: The appeal succeeded only to the extent of admission of the additional ground and consequential remand, leaving the substantive deduction claim to be decided by the Commissioner (Appeals).

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