TaxTMI 
TaxTMI 
2006 (3) TMI 136
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....nce being that they arise out of different assessment years. 2. This is an appeal filed by the Revenue (Commissioner of Income-tax) under section 260A of the Income-tax Act, 1961, against an order dated February 29,2000, passed by the Income-tax Appellate Tribunal in I.T.A. Nos. 440/Ind./94, 855/Ind./96, 856/Ind./96 and 1107/Ind./96. This appeal as also other four appeals were admitted for final hearing on the following substantial questions of law: "1. Whether the Income-tax Appellate Tribunal was justified in recording a finding that the assessment in question which were essentially based upon the revised return filed by the assessee are void ab initio and, therefore, annulled? 2. Whether the finding recorded by the I....
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....tedly not raised by the assessee in appeal before the Commissioner of Income-tax (Appeals) could the Tribunal proceed to decide for the first time in appeal or it should have remanded the case to the Commissioner of Income-tax (Appeals) for deciding those four grounds in accordance with law?" 5. We wish to take up the additional substantial question of law first. This is how the Tribunal dealt with this issue in their order: "I.T.A. No. 440/Ind./94- This is an appeal of the assessee in which the order of the Commissioner of Income-tax (Appeals) has been assailed on various grounds. During the course of hearing the assessee has filed the following additional grounds of appeal with the request to admit the same:- 'For....
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....ection 250(4) and (5) read with section 251 of the Act deals with the powers of the Commissioner of Income-tax (Appeals) while deciding any appeal filed by the assessee. By virtue of these powers, the Commissioner of Income-tax (Appeals) has wide discretion as also jurisdiction to deal with the issue and pass appropriate orders raised before him by the assessee. 7. In our considered view, therefore, the Tribunal having permitted the assessee to raise four additional grounds treating them to be legal grounds in appeal for the first time, should have set aside the order of the Commissioner of Income-tax (Appeals) and remanded the case to the Commissioner of Income-tax (Appeals) for deciding the appeal by the Commissioner; of Income-tax (Ap....
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....d on those grounds which had not been taken before the Commissioner of Income-tax (Appeals) and then answered them in favour of the assessee by completely annulling the whole assessment. There would have been no prejudice caused to either party if the case had been remanded to the Commissioner of Income-tax (Appeals) once the prayer to raise additional grounds was allowed by the Tribunal in favour of the assessee. When a litigant has a right to seek adjudication on a particular point from one more authority (as in this case Commissioner of Income-tax (Appeals)) and again acquire a right to reiterate the challenge before the higher appellate authority (such as Tribunal) in case if the challenge is decided against by the first appellate autho....