Assessee entitled to raise claims not made in ROI before appellate authorities

CIT vs. Pruthvi Brokers & Shareholders Pvt. Ltd (Bombay High Court)

 

The assessee filed a ROI in which it omitted to make a claim for payment of SEBI fees. The claim was made by a letter during the assessment proceedings. The AO rejected the claim on the ground that he had no authority to allow any deduction which had not been claimed in the ROI. The assessee raised the claim before the CIT (A) who allowed and this was confirmed by the Tribunal. The department filed an appeal to the High Court claiming that as per Goetze 284 ITR 323 (SC), the assessee was not entitled to make an additional claim for deduction other than by filing a revised return. HELD by the High Court dismissing the appeal: