2021 (1) TMI 1117

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....le perused. 2. The assessee has raised the following two substantive grounds in the instant appeal. "1. On the facts and in circumstances of the case and in law, the ld.CIT(A) erred in confirming the action of AO that the income earned by the appellant from letting out its immovable properties is assessable to tax under the head 'profits and gains of business or profession' and not under the head 'income from house property.' The appellant prays for the following relief: (a) The Hon'ble Tribunal be pleased to hold that the rental receipts are assessable as 'Income from house property' and not as 'business income'. The appellant craves leave to add, alter, omit or substitute any or all of the above grounds of appeal, at any time bef....

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.... an eligible deduction u/s 37 r.w.s. 40(a)(ii) of the Act while computing income under the head 'profits and gains of business /profession'. Mr. Pardiwala has quoted National Thermal Power Corporation vs. CIT [229 ITR 383 (SC)] holding that the tribunal's jurisdiction u/s 254 of the Act has to be interpreted in the widest than in narrower sense. He specifically quoted paras 4 to 6 of their lordship's discussion that nothing comes in the way of the tribunal to entertain an altogether new ground; in case the relevant facts are already on record, so as to determine the correct tax liability of an assessee. 4.1. The Revenue has objected to admission of asssessee's foregoing additional ground at this belated stage. He argued vehemently that rig....

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.... therefore, he prayed for rejecting assessee's impugned grievance on merits as well. 4.2. Mr.Percy Pardiwala reiterated assessee's stand that it deserves relief on both counts on admission of assessee's additional ground on legal principles followed by favourable adjudication on merits. 5. We have given our thoughtful consideration to the foregoing rival contentions in support of admission of assessee's additional ground on legality as well as on merits. Coming to the former aspect of legality, we are of the opinion that the tribunal's jurisdiction continues right from filing of the appeal till final disposal u/s 254 of the Act. Their lordships landmark judgement in NTPC (supra) has clarified that this second appellate jurisdiction has to....