2014 (10) TMI 539

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....n is 1985-86. The original order of the tribunal was passed on 14th May, 1996 and the order on the application seeking rectification was passed on 4th February, 1997. 3. The questions read as under: "(1) Whether, on the facts and in the circumstances of the case, the Income-Tax Appellate Tribunal has erred in law in upholding the disallowance of Rs. 10,000/- out of foreign tour expenses under section 37(3) of the Income-Tax Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, the Income-Tax Appellate Tribunal has erred in not admitting the following additional grounds for consideration:- (a) The learned CIT (A) has erred in not allowing investment allowance on actual cost of plants and machineries (install....

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....f acquisition of various plants installed during the assessment year in consideration. The loan was to be repaid in 10 half yearly installments. The last of such installment was paid at 19th September, 1992. The original cost of machine was Ra.1,45,41,978/- but on account of devaluation of rupee vis-a-vis the foreign currency, the actual cost was determined at Rs. 2,72,82,781/-. This amount was finally determined at the time of payment of final installment. It is in these circumstances that the assessee relying upon section 43A urged before the tribunal that additional questions be formulated and answered. It was submitted that so long as determination was not made, it was not possible for the assessee to lay a definite claim. Now that the ....

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....judgments and the questions were answered in terms thereof, then, such grievance cannot be raised. 9. We have carefully considered these contentions in order to be completely satisfied. We perused relevant paragraphs of the original order and the order on miscellaneous application. We are of the opinion that we should refrain from deciding the issues arising out of additional grounds on merits simply because there is inherent contradiction in the order of tribunal. If the tribunal was not inclined to admit additional grounds, then, refusal could have been based on some germane reason such as delay in raising these grounds or lack of complete material or failure of the Assessee to bring the same diligently or anything by which the assesse....

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....ur notice relevant provisions and applicability of additional grounds but the judgments of this Court subsequent to Khatau Makanji Spinning and Weaving Co. Ltd. (supra). In that regard he submits that this judgment is held to be per incuriam in later Division Bench judgment of this Court in Associated Bearing Co. Ltd. vs. CIT (Bom.) (2006) 286 ITR 341. He has also brought to our notice the judgment of the Supreme Court in the case of Commissioner of Income Tax vs. Gujarat Siddhi Cement Ltd. (2008) 307 ITR 393. Upon considering these contentions of the parties we are of the opinion that the tribunal seriously erred in refusing to admit the additional grounds. The said additional grounds ought to have been considered in accordance with law. T....