In an appeal before the Tribunal the assessee has raised the additional ground which was allowed. On appeal High Court reversed the order of the Tribunal. On appeal to Supreme Court allowing the appeal of the assessee the Court held that the Tribunal entertained the claim as permissible, relying on the dictum of the court in National Thermal Power Co. Ltd. v. CIT [1998] 229 ITR 383 (SC). Further, the Tribunal had also expressly recorded the no-objection given by the Department. Moreover, the limitation on accepting new claims would apply to the assessing authority but would not impinge upon the plenary powers of the Tribunal bestowed under section 254 of the Act. (AY. 1997-98)
Wipro Finance Ltd. v. CIT (2022) 443 ITR 250 / 212 DTR 269 /326 CTR 113 /287 Taxman 155 /137 taxmann.com 230 (SC) Editorial: Decision in CIT v. Wipro Finance Ltd (2010) 325 ITR 672 (Kran)(HC) reversed.
S. 254(1) : Appellate Tribunal-Powers-Admit new claim-Claiming deduction of expenditure erroneously treated in return as capital-Tribunal justified in entertaining. [S. 37(1)]