C& C Construction Pvt Ltd vs. CIT (Delhi High Court)
S. 260A: High Court has no power to consider issue not raised before Tribunal
The assessee filed an appeal before the Tribunal in which it argued that it had constructed a "temporary construction" which was eligible for 100% depreciation. This was rejected by the Tribunal on the basis that the construction was permanent. Before the High Court, the assessee argued for the first time that the expenditure was "revenue" in nature and admissible as business expenditure. HELD not permitting the assessee to raise the plea:
A contention/ issue, which is not raised, dealt with or answered by the Tribunal, cannot be raised before the High Court for the first time in an appeal u/s 260A. Though s. 260A(6) empowers the High Court to "determine any issue which has not been determined by the Appellate Tribunal", the word "determined" means that the issue is not dealt with, though it was raised before the Tribunal. The word "determined" presupposes an issue was raised or argued but there is failure of the Tribunal to decide or adjudicated the same. However, as the issue whether the expenditure is capital or revenue was not raised before the Tribunal, it does not arise from the order of the Tribunal and cannot be entertained (Mahalakshmi Textile Mills 66 ITR 710 (SC) distinguished)
Related Judgements
CIT vs. Splender Construction (Delhi High Court) The Tribunal has side tracked the main issue. It was obvious that conversion of the land into investment just before the sale of the property was made to avoid payment of full taxes. Though the AO accepted the conversion, the assessee's claim that the gains was a LTCG …
Manori Properties Pvt Ltd vs. ITO (ITAT Mumbai) The claim regarding "business loss" cannot be entertained because, though the CIT (A) has dealt with the issue, there is no specific ground. The claim is also not maintainable under Rule 27 since that applies only to a Respondent in the appeal
CIT vs. M/s Varindera Construction Co (P&H High Court – Full Bench) Circular dated 15.5.2008 laying down monetary limit controls the filing of the appeals and not their hearing. Appeals filed as per applicable limit at the time of filing cannot be governed by circular applicable at the time of hearing. The object of the Circular u/s 268A is only to…
S. 260A: High Court has no power to consider issue not raised before Tribunal
The assessee filed an appeal before the Tribunal in which it argued that it had constructed a "temporary construction" which was eligible for 100% depreciation. This was rejected by the Tribunal on the basis that the construction was permanent. Before the High Court, the assessee argued for the first time that the expenditure was "revenue" in nature and admissible as business expenditure. HELD not permitting the assessee to raise the plea:
A contention/ issue, which is not raised, dealt with or answered by the Tribunal, cannot be raised before the High Court for the first time in an appeal u/s 260A. Though s. 260A(6) empowers the High Court to "determine any issue which has not been determined by the Appellate Tribunal", the word "determined" means that the issue is not dealt with, though it was raised before the Tribunal. The word "determined" presupposes an issue was raised or argued but there is failure of the Tribunal to decide or adjudicated the same. However, as the issue whether the expenditure is capital or revenue was not raised before the Tribunal, it does not arise from the order of the Tribunal and cannot be entertained (Mahalakshmi Textile Mills 66 ITR 710 (SC) distinguished)
Related Judgements
CIT vs. Splender Construction (Delhi High Court) The Tribunal has side tracked the main issue. It was obvious that conversion of the land into investment just before the sale of the property was made to avoid payment of full taxes. Though the AO accepted the conversion, the assessee's claim that the gains was a LTCG …
Manori Properties Pvt Ltd vs. ITO (ITAT Mumbai) The claim regarding "business loss" cannot be entertained because, though the CIT (A) has dealt with the issue, there is no specific ground. The claim is also not maintainable under Rule 27 since that applies only to a Respondent in the appeal
CIT vs. M/s Varindera Construction Co (P&H High Court – Full Bench) Circular dated 15.5.2008 laying down monetary limit controls the filing of the appeals and not their hearing. Appeals filed as per applicable limit at the time of filing cannot be governed by circular applicable at the time of hearing. The object of the Circular u/s 268A is only to…
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