DCIT 5(1)(1), MUMBAI V. AIR INDIA LTD, MUMBAI

MA 576/MUM/2023

AI Insights

The case involves an application under Section 254(2) of the Income Tax Act, 1961, filed by the Revenue seeking rectification of a previous order concerning ITA No. 4484/Mum/2018 for the assessment year 2012-13. The original appeal was decided along with other connected appeals, but a specific ground (ground no. (iii)) in the Revenue's appeal was not adjudicated. This ground pertained to the disallowance of Rs. 56.43 crores, which was interest paid due to delayed payment of service tax. The tribunal acknowledged the oversight and restored the appeal for this specific ground to be decided.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 31967 (ITAT-MUMBAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-02-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: MADHUR AGRAWAL
• Section: 254(2); 37(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “A”, MUMBAI BEFORE JUSTICE (RETD.) C.V. BHADANG, PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER MA NO. 576/MUM/2023 (arising out of ITA NO. 4484/MUM/2018) : A.Y. : 2012-13 DCIT, Range 5(1), Mumbai. (Applicant) Vs. Air India Ltd., Mumbai Airport, Santa Cruz (E), Mumbai. 400 053. (Respondent) PAN : AACCN6194P Applicant by : Shri Asif Karmali, Sr. DR Respondent by : Shri Madhur Agrawal Date of Hearing : 21/02/2025 Date of Pronouncement : 21/02/2025 O R D E R PER JUSTICE (RETD.) C.V. BHADANG, PRESIDENT : This is an application under Section 254(2) of the Income Tax Act, 1961 (‘Act’ for short) filed by the Revenue seeking rectification of the order dated 07.12.2022 to the extent it relates to ITA No. 4484/Mum/2018 for assessment year 2012-13. 2. ITA No. 4484/Mum/2018 was filed by the Revenue. The said appeal was decided alongwith other connected appeals by common order dated 07.12.2022. According to the appellant, in para 19 of the order, this Tribunal had observed that ground nos. (i), (ii) and (iii) of Revenue’s appeal in ITA No. 4484/Mum/2018 are identical to ITA No. 4486/Mum/2018 for assessment year 2010-11 except for variation in figures. It is, however, pointed out that ground no. (iii) as raised in ITA No. 4484/Mum/2018 was not identical to ground raised in ITA No. 4486/Mum/2018. It is submitted that ground no. (iii) has not been adjudicated. It is thus contended that there is a mistake apparent from the record in the subject order which needs to be rectified. 2 MA No. 576/Mum/2023 Air India Ltd. 3. We have heard parties. Perused record. 4. It was not disputed during the course of arguments at Bar that ground no. (iii) in ITA No. 4484/Mum/2018 was not identical to ITA No. 4486/Mum/2018 for assessment year 2010-11. Ground no. (iii) in Revenue’s appeal is in respect of disallowance of an amount of Rs.56.43 crores, being interest paid on account of delayed payment of service tax, which disallowance/addition was deleted by the learned CIT(A). It can thus be seen that this ground was not adjudicated presumably on the assumption that it is similar to ground no. (iii) in ITA No. 4486/Mum/2018 which was altogether a different ground. We, therefore, find that the present application deserves to be allowed and appeal in ITA No. 4484/Mum/2018 deserves to be restored for the limited purpose of deciding ground no. (iii) that is the issue as to deletion of disallowance on account of interest paid on delayed payment of service tax. 5. In that view of the matter, the application is allowed. ITA No. 4484/Mum/2018 is restored to the file for the limited purpose of deciding ground no. (iii) as raised by the Revenue, which is as under :- “(iii) Whether on the facts and in the circumstances of the case and in law the Ld CIT(A) has erred in allowing an amount of Rs.56.43 crores being interest paid on account of delayed payment of service tax is not compensatory in nature u/s 37(1) of the I.T. Act, 1961” The application is allowed in the aforesaid terms. Order pronounced in the open court on 21/02/2025. Sd/- Sd/- (B.R. BASKARAN) (JUSTICE (RETD.) C.V. BHADANG) ACCOUNTANT MEMBER PRESIDENT Mumbai; Dated : 21/02/2025 SSL 3 MA No. 576/Mum/2023 Air India Ltd. Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. The CIT(Judicial) 4. PCIT 5. DR, ITAT, Mumbai 6. Guard File. BY ORDER, //True Copy// (Assistant Registrar) ITAT, Mumbai "