2003 (3) TMI 55 - HC - Income Tax

Whether the Tribunal was right in holding that the additional ground cannot be raised in the memo of appeal after the expiry of the period of limitation? - the limitation is provided only for the purpose of filing the appeal. Once the appeal is filed within the limitation, the memo of appeal can be amended as per the practice and procedure. The view does not require any precedent to support. - we allow the appeal and set aside the judgment of the Income-tax Appellate Tribunal, Jodhpur, dated June 5, 2002. The permission to raise the additional grounds before the Tribunal in is granted. The appellant shall carry out the amendment in the memo of appeal.

Summary

Issues:
- Whether the Tribunal was correct in holding that an additional ground cannot be raised in the memo of appeal after the expiry of the period of limitation?

Analysis:
The appellant filed an appeal before the Income-tax Appellate Tribunal against the Commissioner of Income-tax (Appeals) judgment within the prescribed limitation period. During the appeal, the assessee sought to amend the existing grounds to include additional grounds. The Tribunal allowed the amendment of one ground but rejected the permission to raise the additional ground, stating that it can only be done within the appeal filing period. The High Court disagreed with the Tribunal's reasoning, emphasizing that once an appeal is filed within the time limit, the memo of appeal can be amended. The Court cited a Madras High Court decision supporting the continuous process of filing an appeal and the allowance of additional grounds post-appeal filing. The Court held that there is no specific time limit for filing additional grounds and set aside the Tribunal's judgment, granting permission to raise the additional grounds in the appeal.

The High Court referred to Section 253(3) of the Income-tax Act, 1961, which mandates that an appeal must be filed within 60 days of the communicated order. The Court clarified that the limitation is solely for appeal filing and does not restrict the amendment of the memo of appeal. The Court criticized the Tribunal's stance on the issue, stating that the Tribunal can decide on fresh issues during arguments but cannot deny amendment based on appeal filing limitations. The Court's decision was influenced by the principle that the filing of additional grounds is part of the continuous appeal process, and as long as the appeal is filed within the time limit, additional grounds can be raised subsequently.

In conclusion, the High Court allowed the appeal, overturning the Tribunal's decision. The Court directed the Tribunal to permit the raising of additional grounds in the appeal and instructed the appellant to make the necessary amendments to the memo of appeal. The Tribunal was ordered to issue a fresh order after hearing all parties involved.