2023 (5) TMI 784

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..... The brief facts of the case are that the Assessing Officer noticed that the assessee had filed service tax return and declared turnover of Rs.26,44,516/- in his service tax return. Apart from that, the assessee has also entered into a transaction of sale of immovable property of Rs.11,79,011/-, but the assessee did not file its return of income for the assessment year under consideration. The Assessing Officer thereafter reopened the assessment u/s 148 r.w.s. 147 of the Act and called for the assessee to file its return of income. The assessee filed its return of income and had shown an income of Rs.20,94,200/- and paid the applicable tax thereon amounting to Rs.1089,278/-. The Assessing Officer accepted the said return of income. 3. H....

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....appeal procedure in an income tax matter is to ascertain the correct tax liability of the assessee in accordance with law. Therefore, at both the stages, either by the Appellate Assistant Commissioner or before the Appellate Tribunal, the appellate authority can consider the proceedings before it and the material on record before it for the purpose of determining the correct tax liability of the assessee. The Hon'ble full bench of the Bombay High Court observed that there was nothing in section 254 or section 251 which would indicate that the appellate authorities are confined to considering only the objections raised before them or allowed to be raised before them either by the assessee or by the department, as the case may be. They can co....

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....Court, therefore, directed the AO to make the assessment without keeping in mind the said circular. It may be further observed that the Hon'ble Bombay High Court in the case of 'Pruthvi Brokers & Shareholders Pvt. Ltd.' ITA No.3908 of 2010 decided on 21.06.12, while relying upon the various decisions of the Hon'ble Supreme Court and other Hon'ble High Courts has held that even if a claim is not made before the AO, it can be made before the appellate authorities. The jurisdiction of the appellate authorities to entertain such a claim is not barred. The Hon'ble High Court has further observed that the decision of the Hon'ble Supreme Court in the case of 'Goetze (India) Limited v. CIT' (2006) 157 Taxman 1, relating to the restriction of making....