TaxTMI 
TaxTMI 
2006 (8) TMI 155
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....nal, Chandigarh Bench (for short, "the Tribunal"), in I. T. A. No. 841/Chandi/2000, for the assessment year 1997-98, raising the following substantial questions of law: "(i) Whether, on the facts and circumstances of the case, the order of the Tribunal is perverse as the Tribunal has not allowed the assessee to raise the additional ground which has been concluded in favour of the assessee in all preceding years? (ii) Whether, on the facts and circumstances of the case, the order of the Tribunal is contrary to the ratio of the Supreme Court in National Thermal Power Co. Ltd. v. CIT [1998] 229 ITR 383? (iii) Whether, on the facts and circumstances of the case, the Tribunal has failed to exercise a jurisdiction veste....
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....les tax subsidy in the sum of Rs. 1,84,82,903/- as revenue receipt by the authorities below is highly unjustified in as much as such sales tax subsidy received by the appellant was capital in nature and may kindly be so held by the hon'ble Bench accordingly." 5. The Tribunal did not permit raising of the additional ground for the reason that the omission of this ground from the original memo of appeal was not reasonable. 6. As to whether the additional ground of appeal can be raised by an assessee before the appellate authority during the course of hearing of the appeal or not, is no more res integra. In Jute Corporation of India Ltd. v. CIT [1991] 187 ITR 688 (SC) and National Thermal Power Co. Ltd. v. CIT [1998] 229 ITR 383, the hon....
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.... In the case of Jute Corporation of India Ltd. v. CIT [1991] 187 ITR 688, this court, while dealing with the powers of the Appellate Assistant Commissioner observed that an appellate authority has all the powers which the original authority may have in deciding the question before it subject to the restrictions or limitations, if any, prescribed by the statutory provisions. In the absence of any statutory provision, the appellate authority is vested with all the plenary powers which the subordinate authority may have in the matter. There is no good reason to justify curtailment of the powers of the Appellate Assistant Commissioner in entertaining an additional ground raised by the assessee in seeking modification of the order of as....
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....e remitted back to the Commissioner of Income-tax (Appeals) for consideration of the additional ground of appeal being permitted to be raised by the assessee. However, in view of the subsequent development, namely, that in an appeal filed by the Revenue against the order passed by the Tribunal in favour of the assessee on an identical ground on the merits of additional ground, for the assessment year 1993-94, this court, in I. T. A. No. 110 of 2005-CIT v. Abhishek Industries Ltd. [2006] 286 ITR 1 (P & H), decided on August 4, 2006, had set aside the order passed by the Tribunal while holding that subsidy of the kind received by the assessee would be revenue receipt and not capital in nature. As to whether in these circumstances, still we sh....