HYDERABAD RACE CLUB,HYDERABAD V. DY. COMMISSIONER OF INCOME TAX , CIRCLE-2(2), HYDERABAD

MA 107/HYD/2022

AI Insights

The case involves the Hyderabad Race Club, which filed a miscellaneous application seeking to recall an earlier Tribunal order that had remitted the matter back to the Assessing Officer for de-novo consideration. The assessee argued that there was an apparent mistake in the Tribunal's earlier order, citing the 'Rule of Consistency' and previous favorable decisions for assessment years 2009-10 to 2016-17. The Revenue opposed the recall, emphasizing the independence of each assessment year. The Tribunal, referencing a Supreme Court decision, noted that rectification under section 254(2) of the Income Tax Act can only be applied to obvious and patent mistakes, not those requiring extensive reasoning or inquiry. Additionally, the Tribunal acknowledged that the matter was already stayed by the High Court, leading to the dismissal of the application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474838 (ITAT-HYDERABAD)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-02-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-A
• Assessment Year: 2017-2018
• Other Referred Cases: PCIT vs. Maruti Suzuki (India) Limited [2019] 416 ITR 613 (SC), ACIT vs. Saurashtra-Kutch Stock Exchange Ltd., [2008] 305 ITR 227 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SRINATH SADANALA
• Assessee Lawyers: K.C.DEVDAS
• Keywords: Question of law
• Section: 254(2)

Judgement Text

" 1 MA.No.107/Hyd./2022 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD “A” BENCH : HYDERABAD BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER M.A.No.107/Hyd./2022 Arising out of ITA.No.379/Hyd/2020 - Assessment Year 2017-2018 Hyderabad Race Club, Hyderabad PAN AAACH2773C vs. The DCIT, Circle-2(2) Hyderabad. (Applicant) (Respondent) For Assessee : CA K.C. Devdas For Revenue : Shri Srinath Sadanala, Sr. AR Date of Hearing : 21.02.2025 Date of Pronouncement : 21.02.2025 ORDER PER G.MANJUNATHA, A.M. : By this miscellaneous application the assessee seeks to recall the order of the Tribunal dated 15.12.2021 passed in ITA.No.379/Hyd./2020 u/sec.254(2) of the Income Tax Act, 1961 [in short “the Act”] wherein the Tribunal has allowed the appeal filed by the Revenue and remit the matter in issue back to the file of Assessing Officer for de-novo consideration. 2 MA.No.107/Hyd./2022 2. During the course of hearing, it was the contention of the Learned Counsel for the Assessee that from the last 10 years i.e., AY 2009-10 to 2016-17 the claim of the assessee has been allowed by the Tribunal and, therefore, the Tribunal has to follow the ‘Rule of Consistency’ as held by the Hon’ble Apex Court in the case of PCIT vs., Maruti Suzuki (India) Limited [2019] 416 ITR 613 (SC) and accordingly submitted that that there was an apparent mistake in the order of the Tribunal dated 15.12.2021 which needs recall by the Tribunal in the interest of justice. 3. The Learned DR, on the other hand, heavily relied on the order of the Tribunal dated 15.12.2021 passed in it’s appeal in ITA.No.379/Hyd./2020 and submitted that it is the settled principle in income tax proceedings that each assessment year is independent assessment year and, therefore, there is no mistake apparent on record which needs interference of the Tribunal to recall it’s order dated 15.12.2021 as the said order is in accordance with law. 3 MA.No.107/Hyd./2022 4. We have heard the rival submissions of both the parties, perused the order of the Tribunal dated 15.12.2021 and the material placed on record. We find that it is the settled position of law that power of rectification under section 254(2) of the Act can be exercised only when the mistake which is sought to be rectified is an obvious and patent mistake which is apparent from record to cure such mistakes and not a mistake which requires to be established by arguments and long drawn process of reasoning or roving enquiries as held by Hon’ble Supreme Court in the case of ACIT vs., Saurashtra-Kutch Stock Exchange Ltd., [2008] 305 ITR 227 (SC) . Further during the course of hearing, Learned Counsel for the Assessee submitted that the assessee has filed an appeal before the Hon’ble High Court of Telangana against the order of the Tribunal dated 15.12.2021 passed in ITA.No.379/Hyd./ 2020 and the appeal of the assessee has been admitted and the Hon’ble High Court vide Order dated 10.06.2022 in I.A.No.20 of 2022 in Income Tax Appeal No.148 of 2022 has stayed the operation of the order of the Tribunal. In this 4 MA.No.107/Hyd./2022 view of the matter, once the Hon’ble High Court of Telangana has ceased the matter on the substantial question of law raised by the assessee, in our considered view, the assessee cannot run parallel proceeding by filing the present miscellaneous application before the Tribunal on the very subject matter. Therefore, in our considered view, the miscellaneous application filed by the assessee has become infructuous and accordingly the same is dismissed. 5. In the result, M.A. of the assessee is dismissed. Order pronounced in the open Court on 21.02.2025 Sd/- Sd/- [VIJAY PAL RAO] [G. MANJUNATHA] VICE PRESIDENT ACCOUNTANT MEMBER Hyderabad, Dated 21st February, 2025 VBP Copy to 1. M/s. Hyderabad Race Club, - 16-10-1/A/1, Race Course Road, Malakpet, Hyderabad. 2. The DCIT, Circle-2(2), Room No.513, 5th Floor, Signature Tower, Opp. Botanical Garden, Kondapur, Hyderabad – 500 084. Telangana. 3. The CIT(A)-2, Hyderabad 4. Pr. CIT-2, Hyderabad 5. The DR ITAT “A” Bench, Hyderabad. 6. Guard File. //By Order// //True Copy// Sr. Private Secretary, ITAT, Hyderabad Benches, Hyderabad. "