Indian Kanoon - Search engine for Indian Law

17. We have given a thoughtful consideration to the issue as regards the validity of the refusal on the part of the lower authorities to adjudicate the claim of the assessee, that the amount received by him by way of non-compete fee, being a „Capital receipt‟, was thus not taxable at all. We though are in agreement with the view of the lower authorities, that as observed by the the Hon‟ble Apex Court in the case of Goetze (India) Ltd. Vs. CIT (2006) 284 ITR 323 (SC), there is no provision under the Act which empowers the A.O to make an amendment in the return of income, except for on the basis of a valid revised return of income, which we find in the case before us the assessee had failed to file. However, we are also not oblivious of the fact that the Hon‟ble Apex Court had in the case of Goetze (India) Ltd. (supra) specifically observed that the observations recorded in its order were limited to the power of the assessing authority, and does not impinge on the power of the Income-tax Appellate Tribunal under Sec. 254 of the Income tax Act, 1961. We find that the Hon‟ble High Court of Bombay in the case of CIT Vs. Pruthvi Brokers & Shareholders Pvt. Ltd (2012) 349 ITR 336 (Bom), after taking cognizance of the judgment of the Hon‟ble Supreme Court in the case of Goetze (India) Ltd. (supra), had concluded that the assessee is entitled to raise before the appellate authorities not merely additional legal submissions, but is also entitled to raise additional claims before them. The Hon‟ble High Court held that the appellate authorities have jurisdiction to deal not merely with additional grounds, which became available on account of change of circumstances or law, but with additional grounds which were available when the return was filed. We are of the P a g e | 19 ITA Nos 1871 & 2576/Mum/2012 AY: 2009-09 Shri Ashok M. Wadhwa Vs. ACIT DCIT Vs. Shri Ashok Kumar Wadhwa considered view that as per the settled position of law, even if a claim involving purely a question of law had not been raised before the A.O, the same can be raised for the first time before the appellate authorities, subject to the condition that the same arises from the facts available on record.