TaxTMI 
TaxTMI 
2012 (7) TMI 296
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....spect of material supplied during the year, which was ascertained/quantified in the immediately succeeding year, viz, assessment year 2007-08 and has been disallowed in the assessment order for that year as prior period expenditure, be allowed . 2. That on the facts and circumstances of the case, deduction of Rs.619.19 lacs on account of short provision for the discount to be given to dealers under sales promotion schemes, made at the end of the year in respect of sales made to dealers during the relevant year, which were finalized/ascertained/quantified and accounted in the immediately succeeding year, viz., 2007-08 and disallowed in the assessment order for that year as prior period expenditure, be allowed." 2. With regard to additional....
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....when the negotiations were finalized with the vendors it was found that the provision made for increase in the price of material during the accounting year relevant to assessment year 2006-07 fell short by Rs. 498.09 lacs. The same was claimed as deduction in assessment year 2007-08. It was done as per the method of accounting consistently being followed by the assessee. That the Assessing Officer disallowed the claim in assessment year 2007-08 on the ground that it pertained to earlier year. The assessee's appeal against such disallowance is pending before ITAT. However, the additional ground is raised just to keep the matter alive in assessment year 2006-07 because, if the ITAT also takes the view that the deduction is not permissible in ....
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....ground No.2), both are as per the method of accounting consistently followed by the assessee. That still the assessee's claim is that these deductions are allowable in assessment year 2007-08. However, the additional ground is taken as an abundant precaution so as to take care of a situation that if while deciding the appeal for assessment year 2007-08 the ITAT takes the view that the deduction is not permissible in the year 2007-08, but, permissible in the year in which material was supplied or the vehicles were sold, then, the assessee should be entitled to make the claim in the relevant period i.e., assessment year 2006-07. Thus, he stated that the claim of admission of additional ground is only as an alternative ground. That all the fac....
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....Prospecting Co. ((1983) 141 ITR 301 (Guj) v) Indian Steel and Wire Products Ltd. vs. CIT (1994) 208 ITR 740 (Cal) 6. In the rejoinder it is stated by the counsel that the occasion for raising of the additional ground arose only when the Assessing Officer passed the assessment order for assessment year 2007-08 on 4th April, 2012. Obviously, before that the assessment of assessment year 2006-07 was already completed. In fact, the appeal is pending before ITAT. Therefore, there was no occasion for the assessee to file the revised return. He reiterated that the assessee's claim in assessment year 2006-07 is only alternative and will arise only if in assessment year 2007- 08 ITAT decides these two issues against the assessee on the ground that....
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....not in dispute that all the facts in this regard are on the record of the revenue, of course, for assessment year 2007-08. Considering the totality of the above facts, in our opinion, it would be in the interest of justice to admit the additional grounds of appeal raised by the assessee. We may also mention that the facts of various cases relied upon by the learned DR are altogether different than the facts in appeal before us. In the case of National Thermal Power Co. Ltd. (supra) relied upon by ld. Counsel, the Hon'ble Apex Court held as under:- "Undoubtedly, the Tribunal has the discretion to allow or not to allow a new ground to be raised. But where the Tribunal is only required to consider the question of law arising from facts which ....