Additional grounds

Provision for amending the grounds of appeal was only available in case of appeal under S.127 of the Income Tax Ordinance, 2001 which provides appeal to the Commissioner (Appeals) and the legislature had not accorded such powers to the Appellate Tribunal, whereas R.14 of the Income Tax Appellate Tribunal Rules, 1981, which refers the grounds which may be taken in appeal, provides that except by leave of the Appellate Tribunal, the appellant shall not be heard in support of any ground not set forth in the Memorandum of Appeal

Validity

Rule 14 of the Income Tax Appellate Tribunal Rules, 1981 and Income Tax Appellate Tribunal Rules, 2005, provide that additional grounds shall be allowed subject to leave of the Tribunal and be heard in support of any ground not set forth in the Memorandum of Appeal

Sufficient powers had been delegated through such rules to allow the amended/additional grounds and the miscellaneous application was nothing less than an application for leave of the Tribunal requesting to allow the Department to argue further grounds not taken in appeal

Section 131(2) of the Income Tax Ordinance, 1979 permits the Commissioner (Appeals) to allow the appellant to file new grounds of appeal and the same procedure was adopted vide S.128 of the Income Tax Ordinance, 2001

Powers to allow the amended grounds, had not been provided either in the Income Tax Ordinance, 1979 or Income Tax Ordinance, 2001, but R.14 of the Income Tax Appellate Tribunal Rules, framed under the two Ordinances, empowers the Appellate. Tribunal to allow the grounds of appeal

Provision simply restricts the arguments on the ground for which no leave was granted by the Appellate Tribunal and miscellaneous application fell within the ambit of R.14 of the Income Tax Appellate Tribunal Rules, by virtue of which, the Tribunal had powers to allow the additional grounds

Department was allowed to add additional grounds of miscellaneous application in the memo of grounds of appeal initially furnished with the appeal

Arguments that appellant had neither applied nor obtained leave of Income Tax Appellate Tribunal to urge additional ground, was of no consequence, as the application for additional grounds of appeal, was exactly in line with R.14 of the Income -Tax Appellate Tribunal Rules.