DCIT Vs Max Life Insurance Co. Ltd (ITAT Delhi)
ITAT Delhi held that taxpayer is entitled to raise additional claims before appellate authority hence claim for exemption under section 10(15)(iv)(h) for the first time vide additional ground is allowed and matter set aside to file of AO for examining the claim.
Facts- The matter involved here is vide additional ground of appeal, the assessee made a claim for exemption under section 10(15)(iv)(h) in respect of interest income which accrued to it on account of its investments in the redeemable non-convertible bonds/debentures issued by the public sector companies. Notably, the claim was neither made in the return nor before AO/ CIT(A).
Conclusion- Hon’ble Bombay High Court in the case of Siva Equipment (P.) Ltd. v. ACIT [2020] 423 ITR 20 (Bombay) which held that a taxpayer is entitled to raise not merely additional legal submissions before the appellate authorities but is also entitled to raise additional claims before the appellate authorities. In view of the above, we admit the additional ground raised.
Held that the though the facts of the investments in PSU Bonds and debentures are available in the audited accounts, the assessing officer needs to examine the same with regard to the eligibility of assessee’s claim considering the eligibility criteria laid down in section 10(15)(iv)(h). For this purpose, we find it fit to set aside this issue to the file of the assessing officer for examining the claim of the assessee. Where the claim made is as per the law, the same should be allowed.
