TaxTMI 
TaxTMI 
2020 (12) TMI 258
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....ccount of alleged purchase of vehicle without giving a notice/reasonable opportunity of being heard to the Appellant for making such enhancement as provided u/s. 251(2) of I.T. Act and consequently, the enhanced addition of Rs. 31,25,791/- as made being wholly illegal, deserves to be deleted. 3. That without prejudice to above, addition of Rs. 17,76,209/- as made by the AO being wholly unjust, arbitrary and untenable, ought to have been deleted by the Ld. CIT(A) and there was also no justification on the part of Ld. CIT(A) both on facts and under the law in enhancing the above addition of Rs. 17,76,209/- to Rs. 49,02,000/- resulting in enhanced addition of Rs. 31,25,791/- on account of alleged purchase of vehicle without bringing any conclusive evidence on record to support the addition as made. At any rate, without prejudice, the addition as made is very excessive. 4. That the Ld. AO had erred on facts and under the law without bringing any conclusive evidence on record to prove cessation of liabilities u/s. 41 of I.T. Act and in making additions of Rs. 86,41,464/- in respect M/s. Kotak Securities and Rs. 2,85,05,964/- in respect of M/s. Omex Investment & Finance....
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....h illegal assumption of jurisdiction is void ab-initio which deserves to be quashed." 4. During the hearing for the admission of the additional ground, the ld. DR opposed for admission of additional ground arguing that this is not the time to raise such grounds as the AO and ld. CIT(A) have not been confronted with any such objection and raising of the technical ground at this juncture cannot be admitted. 5. The ld. AR argued that the ground raised being a legal ground and goes to the root of the matter, the same may be admitted. He placed reliance on the order in the case of National Thermal Power Co. Ltd. Vs. Commissioner of Income Tax on 4 December, 1996, (229 ITR 383), the additional ground filed by the assessee is accepted. The relevant portion of the judgment is as under: "Under Section 254 of the Income-tax Act, the Appellate Tribunal may, after giving both the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit. The power of the Tribunal in dealing with appeals is thus expressed in the widest possible terms. The purpose of the assessment proceedings before the taxing authorities is to assess correctly the tax liabili....
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....ers of the Appellate Tribunal [vide, e.g., C.I.T. v. Anand Prasad (Delhi), C.I.T. v. Karamchand Premchand P. Ltd. and C.I.T. v. Cellulose Products of India Ltd. Undoubtedly, the Tribunal will have the discretion to allow or not allow a new ground to be raised. But where the Tribunal is only required to consider a question of law arising from the facts which are on record in the assessment proceedings we fail to see why such a question should not be allowed to be raised when it is necessary to consider that question in order to correctly assess the tax liability of an assessee. 8. The reframed question, therefore, is answered in the affirmative, i.e., the Tribunal has jurisdiction to examine a question of law which arises from the facts as found by the authorities below and having a bearing on the tax liability of the assessee. We remand the proceedings to the Tribunal for consideration of the new grounds raised by the assessee on the merits." 6. Respectfully following the above judgment of the Hon'ble Apex Court, the additional grounds taken up by the assessee are hereby admitted. The matter is taken up for adjudication. 7. At the outset, the ld. AR argued that t....
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....Tribunal, Delhi. In this regard, it is stated that the assessment record of M/s. Dominion Investment (P.) Ltd. PAN: AAACD3199A for A.Y. 2002-03 is presently not traceable. As the documents requested by you are part of the assessment record which is not traceable, this office is unable to provide you the copy o reasons recorded for reopening of assessment in the case. If aggrieved, the applicant, within 30 days from the receipt of this order, may prefer appeal against this order before the Addl. Commissioner of Income Tax. Range-7, Room No. 407, 4th Floor, Central Revenue Building, I.P. Estate, New Delhi. Sd/- (N.S. Meena) CPIO, Income Tax Officer, Ward-7(4), New Delhi. 9. The ld. DR submitted his written reply which is as under: This appeal has been made by the assessee against the Id. CIT(A) order dated 09/10/2012 in appeal no. 42/10-11 confirming various additions and also enhancement in one ground. The assessee has taken mainly 7 grounds of appeal against the Ld. CIT(A) order. The Id. CIT(A) while dealing with various grounds taken before him during appellate proceedings by the assessee, has elaborately discussed the issues and ....