JEHANGIR H.C. JEHANGIR Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This appeal by the assessee challenges that part of the Tribunal's order by which it refused to admit an additional ground and raised by the assessee. That was in relation to payment of Rs. 7.41 lakhs and traceable to Sections 194 and 194J of the Income-tax Act, 1961. The Tribunal refused to admit this question as in its opinion, it does not arise out of the order of the First Appellate Authority. After hearing Mr. Irani, learned Counsel, appearing on behalf of the assessee, in support of this appeal and Mr. Chhotaray, learned Counsel, appearing for the Revenue, we are of the opinion that the Appeal deserves to be admitted. It is admitted on the following substantial question of law:--

(2.) Since the Tribunal has not allowed the assessee to raise this additional ground, no useful purpose will be served by keeping this appeal pending on our file. That is why we have heard it and with the consent of the parties, we dispose of it finally.

(3.) Mr. Irani, submits that the Tribunal's approach is in direct contradiction with the binding judgment of the Hon'ble Supreme Court in the case of National Thermal Power Limited Company v. Commissioner of Income Tax, 1998 229 ITR 383.