Suhas Chandra Sen, J. - (1.) Molins of India Ltd., Calcutta, is the assessee in this case. The relevant assessment year is 1974-75. The corresponding accounting period ended on 31st December, 1973. The accounts of the assessee-company were maintained on mercantile system.
(2.) During the relevant previous year, the assessee-company was engaged in the manufacture of cigarette making and packing machineries. Net profit as per profit and loss account was Rs. 58,77,411. Income disclosed by the assessee was Rs. 62,98,280 but the ITO computed the total income at Rs. 66,91,550.
(3.) The assessee preferred an appeal against the assessment order. Before the AAC, the assessee filed an additional ground stating that the ITO should have allowed the surtax liability of the assessee-company as a deduction. In support of its claim, the assessee relied upon a decision of the 'D' Bench of the Appellate Tribunal, Bombay Benches, in I.T.A. Nos. 3068 & 3097 (Bom) of 1972-73, dated 24th February, 1975. Being not satisfied with the delay in raising the additional ground, the AAC refused to admit the same.;