DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(1)(1), BANGALORE V. IRIS CABLE AND BROADBAND PRIVATE LIMITED, BANGALORE

MA 52/BANG/2024

AI Insights

The case involves M/s. Iris Cable & Broadband Pvt. Ltd., where the Revenue filed a Miscellaneous Application (MA) under section 254(2) of the Income Tax Act, 1961, seeking rectification of a previous order by the Income Tax Appellate Tribunal (ITAT). The original ITAT order had remitted the issues in dispute to the file of the Assessing Officer (AO) for de-novo consideration, which was contested by the Revenue. The Tribunal acknowledged the error in its earlier order and corrected it to state that the issues should be remitted to the National Faceless Appeal Centre (NFAC) for reconsideration, as the NFAC had not adequately addressed the documents and evidence submitted by the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34387 (ITAT-BANGALORE)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-01-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRIYADARSHINI BASEGAMMI
• Assessee Lawyers: SANKAET NAYAK
• Section: 254(2)

Judgement Text

"MANo. 52/Bang/2024 M/s. Iris Cable & Broadband Pvt. Ltd. IN THE INCOME TAX APPELLATE TRIBUNAL “C’’BENCH: BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER MA No.52/Bang/2024 (Arising out of ITA No.315/Bang/2024) Assessment Year : 2016-17 DCIT-Circle-3(1)(1), Bengaluru Vs. M/s. Iris Cable & Broadband Pvt. Ltd. #282, 2nd Main Road, Shanbogh Layout, Doddanekundi, Bengaluru – 560037 Karnataka PAN: AADCI2168K APPELLANT RESPONDENT Appellant by : Smt. Priyadarshini Basegammi, Addl. CIT Respondent by : Sri Sankaet Nayak, CA Date of Hearing : 27.12.2024 Date of Pronouncement : 06.01.2025 O R D E R PER KESHAV DUBEY, JUDICIAL MEMBER: This Miscellaneous Application (MA) filed by the Revenue under section 254(2) of the Income Tax Act, 1961 (hereinafter called ‘the Act’) seeking rectification of the Order of the Tribunal in ITA No.315/Bang/2024 for the Assessment Year 2016-17 as follows: MANo. 52/Bang/2024 M/s. Iris Cable & Broadband Pvt. Ltd. Page 2 of 4 2. The Revenue through this MA is seeking to reconsider the impugned Order as at para 5.1 of page No.4 in mentioning that the issue in dispute are remitted to the file of AO for denovo consideration instead of NFAC. 3. The learned DR before us vehemently submitted that Hon’ble ITAT vide its Order in ITA No.315/Bang/2024 dated 24.04.2024 for the Assessment Year 2016-17 has partly allowed the appeal of the assessee for statistical purposes and remitted the issue to the file of AO for denovo consideration and therefore the observation of the Hon’ble ITAT that the issues in dispute are remitted to the file of the AO for denovo consideration instead of NFAC may be rectified as per the provisions contained in section 254(2) of the Act read with Rule 34A. 4. Learned AR of the assessee on the other hand contended that the Revenue in guise of this MA is requesting to reconsider to remit the issue in dispute to the file of NFAC instead of to the file of the MANo. 52/Bang/2024 M/s. Iris Cable & Broadband Pvt. Ltd. Page 3 of 4 AO, which is not permissible as this is not a mistake apparent on the face of the record. 5. We have heard the rival submissions and perused the material available on record. The provisions of section 254(2) of the Act, empowers the Tribunal to rectify any type of mistake in its Order provided it should be apparent on the face of the record. Coming to the fact of the case on hand, admittedly, we have observed in Para 5 of the Order in ITA No. 315/Bang/2024 that as seen from the order of the NFAC, it is in a very cryptic manner. It has not considered various evidences filed by the assessee before him. The order is very silent about the documents uploaded by the assessee before NFAC. 6 Further in Para 5.1 of the said Order, we also observed that there was no discussion on the documents uploaded by the assessee in the order of NFAC and these documents were very important to examine the issue in dispute. Accordingly, we held that all the grounds raised by the assessee before us are remitted to the file of NFAC for reconsideration to decide the same on the basis of evidences produced by the assessee or to be produced by the assessee in accordance with law. 6.1 However, we find that as rightly contended by the ld. DR, while concluding the Para 5.1 of the said Order, we have inadvertently mentioned that the issues in dispute are remitted to the file of ld. AO for de-novo consideration instead of NFAC which in our view is a mistake apparent on the face of the record. 7. Accordingly, we in exercise of the power granted u/s 254(2) of the Act, hereby rectify the order passed in ITA No. 315/Bang/2024 dated 24.4.2024 & replace the word “ld.AO” with “NFAC” at para MANo. 52/Bang/2024 M/s. Iris Cable & Broadband Pvt. Ltd. Page 4 of 4 no. 5.1 of page No. 4 of 4. The paragraph 5.1 in the order ITA No. 315/Bang/2024 dated 24.4.2024 after rectification may be replaced and read as under: “5.1 There was no discussion on these documents in the order of NFAC and these documents are very important to examine the issue in dispute. Accordingly, all the grounds raised by assessee before us are remitted to the file of NFAC for reconsideration to decide the same on the basis of evidences produced by the assessee or to be produced by assessee in accordance with law. The assessee is at liberty to produce further documents, if any to support its case. Accordingly, the issues in dispute are remitted to the file of the NFAC for de-novo consideration.” 8. Accordingly, we allow the MA filed by the Revenue. However there is no change in the final result in ITA No.315/Bang/2024 dated 24.4.2024. 9. In the result, MA filed by the Revenue is allowed for statistical purposes. Order pronounced in the open court on 6th Jan, 2025 Sd/- (Laxmi Prasad Sahu) Accountant Member Sd/- (Keshav Dubey) Judicial Member Bangalore, Dated: 6th Jan, 2025. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order Asst. Registrar, ITAT, Bangalore. "