1996 (3) TMI 98

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....ction 256(1) of the Income-tax Act, 1961, at the instance of the assessee and the following questions of law have been referred by the Tribunal for answer of this court, which read as under : " (1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in not entertaining the additional ground raised by the applicant before the hearing of the appeal ? (....

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....stment allowance claimed a Rs. 16,70,582 for the reason that the assessment for this year has resulted in negative income and no investment allowance reserve was created. It is submitted that as per section 32A(4), investment allowance reserve is required to be created in the year in which the said deduction is actually allowed, against the taxable income. It is, therefore, prayed that in spite of....

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....eafter, the assessee preferred an appeal before the Tribunal. Though this ground was not specifically raised in the memo of appeal, therefore, an application was made seeking permission of the Tribunal to raise this ground and in that connection, a reference was made to rule 11 of the Income-tax (Appellate Tribunal) Rules, 1963. The Tribunal after considering the matter, negatived the contention a....

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....hen the grounds can be raised with the permission of the Tribunal. It is not necessary that the application for condonation of delay is required to be made. All that is required is that a permission to raise additional ground and a proper notice to other side so that it should know that what challenge it has to meet. But, in the present case, the Tribunal has treated this additional ground as an a....