The delhi ITAT in  23 ITR (Trib)-OL 170 (ITAT[Del]) admitted an additional ground no matter not pressed before the lower authorities. The matter related to deduction of cess. The revenue alleged it as similar to tax hence not deductible u/s 40 (a) (ii).
In regard to law on the question of allowance of any deduction, exemption or relief the bench found that such provisions should be interpreted liberally, reasonably and in favour of the assessee and it should be so construed as to effectuate the object of the Legislature and not to defeat it. Further, the interpretation cannot go to the extent of reading something that is not stated in the provision (See A. G. S. Tiber and Chemical Industries P. Ltd. v. CIT  233 ITR 207 (Mad)).
It is in this light that the bench held that the department misread the law in interpreting the word tax to include any cess