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1. Admissibility of additional ground raised by the assessee during the final hearing of the appeal before the Income-tax Appellate Tribunal. Comprehensive Analysis: The judgment pertains to a reference under section 66(1) of the Income-tax Act by the Income-tax Appellate Tribunal regarding the admissibility of an additional ground raised by the assessee during the final hearing of the appeal. The key issue revolved around whether the Tribunal was justified in not admitting the additional ground as per Rule 12 of the Appellate Tribunal Rules. The facts reveal that the assessee, a Hindu undivided family, had undisclosed cash credits detected during the assessment year 1945-46. The assessee appealed against the inclusion of these credits, and during the final hearing, raised a legal ground challenging the assessment based on the timing of the cash credits. The Tribunal, however, rejected the plea to add this ground, citing lack of a valid excuse for not raising it earlier. The judgment delves into the legal framework governing the admission of additional grounds in appeals. Rule 12 of the Appellate Tribunal Rules restricts appellants from urging new grounds without the Tribunal's permission. The judgment draws parallels with Order 41 of the Civil Procedure Code, emphasizing that parties should not be allowed to introduce entirely new cases during appeals. However, exceptions exist when the new ground arises from facts already on record and requires no further factual inquiry. Precedents were cited to highlight instances where courts allowed additional grounds that were purely legal in nature and pivotal to the case's outcome. The Court acknowledged the importance of the legal question raised by the assessee, which could impact the assessment substantially. Referring to previous decisions, the Court emphasized the need for the Tribunal to exercise its discretion judiciously when considering the admission of additional grounds. The judgment criticized the Tribunal's cryptic rejection of the assessee's plea, highlighting the lack of clarity in the grounds for refusal. Ultimately, the Court ruled in favor of the assessee, directing the Tribunal to reconsider the additional ground in light of relevant legal precedents. In conclusion, the judgment underscores the significance of allowing parties to raise crucial legal grounds during appeals, especially when such grounds are pivotal to the case's merits. It emphasizes the need for Tribunals to exercise discretion judiciously in deciding on the admission of additional grounds, particularly when such grounds are of substantial importance to the case at hand.
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