EVERSMILE PROPERTIES PRIVATE LIMITED,MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3(1), MUMBAI

MA 815/MUM/2017

AI Insights

This case involves an application by the Revenue seeking rectification of a previous order concerning an appeal against Eversmile Properties Pvt. Ltd. The original appeal and subsequent cross-objection involved disputes over disallowances made by the Income Tax authorities, specifically regarding payments made to the Authority of Urban Land Ceiling, which were contested as being non-deductible penalties rather than compensatory payments. The Tribunal's rectification corrected procedural and substantive errors in the documentation and grounds of appeal, ensuring that the legal proceedings accurately reflected the intentions and arguments of the parties involved.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32077 (ITAT-MUMBAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2006-2007
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Rectification of order
• Section: 254(2); 37(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “E”, MUMBAI BEFORE JUSTICE (RETD.) C.V. BHADANG, PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER MA NO. 815/MUM/2017 (arising out of ITA No. 3394/Mum/2013, A.Y 2006-07, Order dated 26.04.2017) Dy. Commissioner of Income Tax, Circle-3(1), Mumbai. (Applicant) Vs. Eversmile Properties Pvt. Ltd., Conwood House, Goregaon Mulund Link Road, Yashodham, Dindoshi, Goregaon (E), Mumbai 400 063. PAN : AAACE1576C (Respondent) Applicant by : Shri Leyaqat Ali Aafaqui Respondent by : None Date of Hearing : 07/03/2025 Date of Pronouncement : 07/03/2025 O R D E R PER JUSTICE (RETD.) C.V. BHADANG, PRESIDENT : This is an application by the Revenue under Section 254(2) of the Income Tax Act, 1961 (‘Act’ for short) seeking rectification of order dated 26.04.2017 in ITA No. 3394/Mum/2013 for assessment year 2006-07. 2. We have heard the learned DR for the applicant. None appears for the respondent although twice notice of hearing was issued. 3. A perusal of the record indicates that Revenue had filed ITA No. 3394/Mum/2013 in which there was a Cross Objection No. 116/Mum/2016 raised by the assessee. The learned DR submitted that the cause title needs to be corrected. It 2 MA No. 815/Mum/2017 Eversmile Properties Pvt. Ltd. is also pointed out that the grounds of appeal as reproduced in para 3 are also not correct. The grounds which are raised by the Revenue in the appeal are reproduced in para 4.1 of the application. 4. A perusal of the record indeed shows that there is a mistake apparent from the record, which needs to be corrected. In such circumstances, the application is allowed. Necessary corrections be carried out in the following manner :- A) The cause title be corrected as under :- ITA No. 3394/Mum/2013 Assessment Year 2006-07 Dy. Commissioner of Income Tax, Circle-3(1), Mumbai. (Appellant) Vs. Eversmile Properties Pvt. Ltd., Conwood House, Goregaon Mulund Link Road, Yashodham, Dindoshi, Goregaon (E), Mumbai 400 063. PAN : AAACE1576C (Respondent) C.O No. 116/Mum/2016 Assessment Year 2006-07 Eversmile Properties Pvt. Ltd., Conwood House, Goregaon Mulund Link Road, Yashodham, Dindoshi, Goregaon (E), Mumbai 400 063. PAN : AAACE1576C (Cross Objector) Vs. Dy. Commissioner of Income Tax, Circle-3(1), Mumbai. (Respondent) B) The grounds of appeal mentioned in para no. 3 of the order dated 26.04.2017 be substituted as under :- “1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting disallowance of Rs.3,45,82,683/- made on account of payments made to Authority of Urban Land Ceiling, without appreciating the fact that the payments made were in the nature of penalty and not compensatory in nature, and therefore, the same were not allowable as deduction u/s 37(1) of the I.T. Act. 3 MA No. 815/Mum/2017 Eversmile Properties Pvt. Ltd. 2. The appellant prays that the order of CIT(A) on the above ground be set aside and that of the Assessing Officer be restored. 3. The appellant craves leave to amend or alter any ground or add a new ground which may be necessary.” C) The paragraph no. 10 in order dated 26.04.2017 be substituted as under :- “10. Now we take up assessee’s cross objection C.O No. 116/Mum/2016 (AY 2006- 07). Since we have already decided the case of revenue in ITA No. 3394/Mum/2013 for AY 2006-07 and upheld the order of CIT(A), therefore, based on our findings we dismiss the cross objection of assessee.” This order shall be read alongwith original order dated 26.04.2017. The application is disposed of in the aforesaid terms. Order pronounced in the open court on 07/03/2025. Sd/- Sd/- (B.R. BASKARAN) (JUSTICE (RETD.) C.V. BHADANG) ACCOUNTANT MEMBER PRESIDENT Mumbai; Dated : 07/03/2025 SSL 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 "