I had the following situation
The assessee filed a return of income for AY 2013-14 declaring income of ₹ 20 lakhs . the A.O u/s 143(3) made on 31/12/2015 disallowed expense ‘A’ of ₹ 15 lakhs, although the supreme court has held in some other case that expense ‘A’ is allowable. The A.O assessed the income at 35 lakhs u/s 143(3). The assessee does not file for any appeal/revision application u/s 264/ rectification (i.e availed no remedies) and the time for filing the appeal/revision/ rectification have all expired.
Later A.O finds an income escaping assessment of ₹ 25 lakhs for assessment year 2013-14 based on new evidence as on 31/12/2020 and issued notice u/s 148 to the assess the escaped income of ₹ 25 Lakhs. The A.O assessed income of ₹ 60 lakhs u/s 147. The assessee filed the appeal against the order in CIT(appeals) and subsequently to ITAT.
During the proceeding in ITAT against the order u/s 147 can the assessee also claimed the deduction in respect the certain expense which were wrongly disallowed earlier in assessment u/s 143(3) which has attained finality?
Sir, Does the ITAT has the power to admit such claim?