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TMI Blog1984 (9) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... entertain a new ground of relief under s. 80-I of the I.T. Act, 1961, which relief was not claimed before the ITO. The assessee was incorporated on July 18, 1970. The authorised capital of the assessee was Rs. 25,00,000. The object of incorporation of the assessee was to take over the running business of Messrs. Western India Strip Mills, a partnership firm. The said business was taken over from September 1, 1970. The issued and paid-up capital of the assessee was Rs. 3,00,200 made up of 3,002 equity shares of Rs. 100 each fully paid up. The business of the assessee consists in the manufacture of iron and steel bars, angles, window sections, etc., technically known as re-rollers from ingots and billets, etc. The assessment for the very firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, that the Supreme Court decision had no doubt reversed the Gujarat High Court decision but had left open cases where there was material on record before the ITO which would support a claim. In his submission, if there was sufficient material on record, then a claim could be raised for the first time before the AAC and entertained by him, although such a claim had not been raised earlier before the ITO. He referred us to the observations of the Supreme Court at page 5 of the report in Gurjargravure's case [1978] 111 ITR 1 and to a decision of the Andhra Pradesh High Court in CIT v. Gangappa Cables Ltd. [1979] 116 ITR 778. We may now proceed to examine the aforesaid two decisions. In the Supreme Court decision in Addl. CIT v. Gurjargravur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f that case where both the requirements indicated above were satisfied. These two requirements are: (1) That there was no claim initially made before the ITO before he completed the assessment, and (2) that there was no material on record to support the claim. What is to happen when both these requirements are not satisfied and there is substantial material on record to support the claim made ? This was the precise case dealt with by the Andhra Pradesh High Court in CIT v. Gangappa Cables Ltd. [1979] 116 ITR 778. The conclusion reached by the Andhra Pradesh High Court is to be found at page 781 of the reports, which passage may be reproduced here: " We are of the opinion that when there is sufficient evidence on record to support a claim, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment order which assessment was completed on July 15, 1972, the ITO has made observations regarding the business of the assessee. The question which he would be required to consider on remand in pursuance of the order of the AAC would be whether the manufacturing business carried on by the assessee as indicated by him (the ITO) would qualify for deduction under s. 80-I read with the Vlth Schedule to the I.T. Act, 1961. In the instant case, there is not merely substantial but almost full material on record to enable consideration of the claim made by the assessee. In this view of the matter, we are of the opinion, respectfully following the decision of the Andhra Pradesh High Court, that the AAC had jurisdiction to allow the new g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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