Appeal before the CIT (A)the besides challenging the addition made by the AO on merits  , the assessee also raised legal grounds qua validity of reassessment proceedings  u/s 153C of the Act. On merit the CIT (A) decided the issue in favour of assessee . On legal ground decided against the assessee.  Revenue challenged  the addition deleted by the CIT (A).  Before the Tribunal the assessee  an oral application under Rule 27 of the ITAT Rules and urged that additional grounds  against the finding of the CIT (A) about the issue of the recording of satisfaction note , and the necessary condition of existence of nexus between assessment and incriminating material by contending that these findings were the teeth of the law as settled by various  High Courts in respect of said issues.  The ITAT disagreed with the assessee and on technical ground refused to consider the legal issues that were premised on the Rule 27 of the ITAT Rules. As the assessee has not filed any such application , the Tribunal was of the view that the Revenue cannot be put to surprise by the respondent . However  , at the same time  the ITAT observed that the assessee had filed additional evidence before CIT (A) and CIT (A) has deleted the addition without complying with Rule 46A and without granting an opportunity to rebut those evidence. The ITAT  restored the matter before the AO for deciding the fresh with further direction to the assessee to produce all necessary documentary evidence in support of claim . Aggrieved by the order of the Tribunal the assessee filed an appeal before the High Court. Allowing the appeal the Court held that  Order passed by the ITAT suffered from perversity in so far as it refused to allow the assessee to urge the grounds by way of an oral application under Rule 27 of the ITAT Rules . Matter remanded back before the ITAT with a direction to hear the matter afresh by allowing the assessee to raise  the additional grounds pertaining to issue relating to the assumption of jurisdiction and validity of the assessment proceedings under S. 153C of the Act .  Referred CIT v. Sundaram Co (P) Ltd ( 1964) 52 ITR 763 (Mad) (HC). (  ITA No. 834 of 2019 dt . 18 -5 -2020 ) (AY. 2008 -09)