https://www.taxtmi.com/caselaws?id=775228 ITAT Mumbai held that appellate authorities have power to entertain fresh claims not made before AO when facts are on record and issue is purely legal. Assessee claimed ESOP expenditure deduction u/s 37(1) for first time before CIT(A), which was rejected citing lack of power to entertain fresh claims. ITAT relied on Prithvi Brokers decision and noted consistent allowance of ESOP deductions in assessee's earlier years. Tribunal distinguished between assessment types u/s 143(1) and 143(3), holding that nature of assessment doesn't affect ITAT's jurisdiction to admit additional grounds. Since claim lacked factual verification, matter was remanded to AO for fresh adjudication after admitting the additional ground. Appeal allowed with direction for proper examination of ESOP expenditure claim. en-us Fri, 18 Jul 2025 00:00:00 +0530 Tue, 22 Jul 2025 08:25:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775228 ITAT Mumbai held that appellate authorities have power to entertain fresh claims not made before AO when facts are on record and issue is purely legal. Assessee claimed ESOP expenditure deduction u/s 37(1) for first time before CIT(A), which was rejected citing lack of power to entertain fresh claims. ITAT relied on Prithvi Brokers decision and noted consistent allowance of ESOP deductions in assessee's earlier years. Tribunal distinguished between assessment types u/s 143(1) and 143(3), holding that nature of assessment doesn't affect ITAT's jurisdiction to admit additional grounds. Since claim lacked factual verification, matter was remanded to AO for fresh adjudication after admitting the additional ground. Appeal allowed with direction for proper examination of ESOP expenditure claim. Case-Laws Income Tax Fri, 18 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775228