Section 254 Allows ITAT to Entertain New Claims, But Power Must Be Exercised During Hearings: SC

Shriram Investments Vs Commissioner of Income Tax III Chennai (Supreme Court of India) Whether fresh claim can be entertained by Income-tax Appellate Tribunal dehors the powers available to it u/s 254 of the Income-tax Act,1961? The Supreme Court of India in this case was considering a situation where the time for filing revised return (whereby the claim for deferred revenue expenditure was made) had expired and thus the revised return was treated as bad in law and the first appeal was also dismissed. The ITAT while dealing with the situation directed the AO to allow the claim of deferred reve...