"Assessment"

"...but that doesn't mean the student who had a wrong issue and was corrected during discussion, should get the same grade as the student who originally had the correct issue." (Thomas' next sentence)

The easiest way out of the contradiction is to separate the two elements, i.e. to use term work to fulfil the educational aim, and exams for assessment. That doesn't resolve the contradiction, it merely avoids it, trouble is it avoids it so as to help staff and hurt students. It is in their interests to abolish ITA, because they solve a difficult problem, save work and save hassles with students complaining of grading disparities. We get the worst of all worlds; have to sit 100% final exams, plus have to do reasonable in-term work to be granted "terms." Staff and students have conflicting interests where assessment is concerned, thus the need for us to be influential in the decision whether to retain in-term assessment, it is no good that the faculty decides the issue and assures us that "we have borne your interests in mind but regret that they did not weigh heavily enough!"