SHILPA ASSOCIATE Vs. I T O BHILWARA

JUDGEMENT

(1.) THIS appeal under Section 260a of the Income Tax directed against the order the Income Tax Appellate Tribunal, Jodhpur dated 05. 06. 2002 was admitted for adjudication of the following substantial question of law:- " Whether the Tribunal was right in holding that additional ground can be raised in the memo of appeal after the expiry of the period of limitation?"

(2.) THE relevant facts for adjudication of the above substantial question of law is that the appellant preferred an appeal before the Income Tax Appellate Tribunal against the judgment of the C. I. T. (Appeals) dated 17. 11. 2000. THE appeal was presented within the limitation. During the pendency of appeal, the assessee filed an application seeking permission to amend the existing grounds of appeal to raise additional grounds. THE prayer is extracted as follows :- " THE appellant seeks your honour's kind permission to frame one ground as against 7 grounds of appeal raised in the memo of appeal. THE amended ground reads as under as S. No. 1:- 1. "that on the facts and circumstances of the case, the authorities below erred in applying the net profit rate of 12. 5% as against disclosed at 10. 32%. " In addition to above, I seek your honour's kind permission to raise following additional grounds of appeal as S. No. 2:- 2. "that on the facts and in the circumstances of the case, the authorities below erred in not allowing the following deductions from the profit estimated by applying net profit rate:- a. Depreciation Rs. 97,062/- b. Interest to third party Rs. 17,600/- c. Provident Fund Rs. 1,05,009/- Rs. 2,19,671/-