Arvind Limited Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that appellate authority has jurisdiction to entertain new claim. Accordingly, additional claim for deduction on account of ESOP is allowed. Accordingly, appeal allowed to that extent.
Facts- The assessee is engaged in the business of textile, brands, retail, engineering, water treatment, telecom and advanced materials sectors, amongst others. The assessee had filed revised return on 30.03.2019, declaring total income at Rs.243,07,47,560/- under normal provision of the Act and Book profit u/s 115JB of the Act for Rs.268,92,45,043/-. The case was selected for complete scrutiny, and thereafter the Assessing Officer has assessed the total income of the assessee at Rs.628,31,46,240/-, vide the impugned order dated 29.11.2021 passed u/s 143(3) r.w.s. 144C(3) r.w.s. 144B of the Act, by making various additions / disallowances.
CIT (A) granted partial relief to the assessee. Being aggrieved, both assessee and revenue preferred present appeal.
Conclusion- Hon’ble Supreme Court in the case of Jute Corpn. of India Ltd. vs. (CIT 187 ITR 688) has held that an assessee is entitled to raise not merely additional legal submissions before the appellate authorities, but is also entitled to raise additional claims before them. The appellate authorities have the discretion whether or not to permit such additional claims to be raised. They have the jurisdiction to entertain the new claim.
