1988 (12) TMI 145 - AT - Income Tax

Summary

Issues:
1. Claim for deduction under section 80-O of the IT Act, 1961.
2. Additional grounds raised by the assessee for investment allowance, treatment of income from sale of import entitlements, and cash assistance.
3. Admissibility of additional grounds for hearing before the Tribunal.

Analysis:

1. The primary issue in this case revolves around the assessee's claim for a deduction under section 80-O of the IT Act, 1961. The Tribunal upheld the orders of the authorities below, denying the assessee relief under section 80-O, as the agreement under which the income was earned was not approved by the CBDT. The Tribunal concurred with its earlier decisions that the assessee was not entitled to exemption under section 80-O due to non-compliance with approval requirements.

2. The assessee raised additional grounds related to investment allowance, treatment of income from the sale of import entitlements, and cash assistance. The Tribunal considered the admissibility of these grounds for hearing. The claim for investment allowance was not raised before the ITO or the CIT(A) at earlier stages of the proceedings, leading to a lack of jurisdiction for the Tribunal to entertain the claim. Similarly, the issues related to the treatment of income from the sale of import entitlements and cash assistance were not raised before the authorities below, making them inadmissible for consideration at the Tribunal.

3. The Tribunal analyzed the legal principles governing the admissibility of additional grounds. While the assessee argued that these were pure questions of law with facts already on record, the Tribunal emphasized the need for material on record to support any claim. Referring to precedents, the Tribunal concluded that if there was no material to support a claim, it could not be allowed to be raised before the appellate authority. The Tribunal highlighted the importance of facts in determining the admissibility of additional grounds and ultimately dismissed the appeal, as the additional grounds lacked factual support and were not raised at earlier stages of the proceedings.

In conclusion, the Tribunal upheld the denial of relief under section 80-O and dismissed the appeal due to the inadmissibility of the additional grounds raised by the assessee, emphasizing the requirement of factual support for any claim to be considered at the appellate stage.