ACIT CIRCLE-3(1)(2), MUMBAI V. EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LTD., MUMBAI

ITA 4565/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2647 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2015-2016
• Appeal Filed On: 20-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. MANJUNATHA SWAMY
• Keywords: Rectification of order; Rule 8D
• Section: 154; 14A; 250; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E , MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL , HON'BLE ACCOUNTANT MEMBER ITA NO S . 4564 & 4565/ MUM/201 8 (A.Y S . 201 4 - 15 & 2015 - 16 ) ACIT 3(1)(2) ROOM NO. 607, 6 TH FLOOR AAYAKAR BHAVAN, M.K. ROAD MUMBAI 400 020 V. M/S EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LTD 5 TH FLOOR, NIRMAL BUILDING NARIMAN POINT MUMBAI 400 021 PAN: AAACE0296K (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S. VENKATRAMAN DEPARTMENT BY : SHRI R. MANJUNATHA SWAMY DATE OF HEARING : 04.12.2019 DATE OF PRONOUNCEMENT : 28 . 02 .2020 O R D E R PER C. N. PRASAD (JM) 1. THESE TWO APPEALS ARE FILED BY THE REVENUE AGAINST THE RECTIFICATION ORDER PASSED U/S. 154 OF THE ACT ON 04.05.2018 BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 10, MUMBAI [HEREINAFTER IN SHORT LD.CIT(A)] FOR THE A.Y. 2014 - 15 & 2015 - 16. 2 ITA NOS. 4564 & 4565/MUM/2018 (A.YS. 2014 - 15 & 2015 - 16) M/S EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LTD 2. IN THE GROUNDS OF APPEAL FILED BY THE REVENUE WE FIND THAT THE REVENUE CHALLENGED THE ORD ER OF THE LD.CIT(A) IN DELETING THE DISALLOWANCE MADE U/S. 14A R.W. RULE 8D (2)(II) OF I.T. RULES IN BOTH THESE ASSESSMENT YEARS. 3. AT THE OUTSET, LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THESE APPEALS WILL NOT SURVIVE FOR THE SIMPLE REASON THAT THE SE APPEAL S HAVE BEEN FILED AGAINST THE RECTIFICATION ORDERS DATED 04.05.2018 PASSED BY THE LD.CIT(A) CARRYING OUT CERTAIN RECTIFICATIONS IN THE MAIN ORDER PASSED U/S. 250 OF THE ACT ON 20.03.2018 AND THE APPEALS FILED BY THE REVENUE AGAINST THE ORDERS PASSED U/S. 250 BY LD.CIT(A) WERE ALREADY HEARD BY THE TRIBUNAL. LD. COUNSEL FOR THE ASSESSEE FURTHER SUBMITS THAT WHAT HAS BEEN RECTIFIED BY THE LD.CIT(A) IN HIS ORDERS PASSED U/S. 154 OF THE ACT IS ONLY CLERICAL MISTAKES WHICH WERE CREPT - IN IN THE ORDERS PASS ED U/S. 250 OF THE ACT. LD. COUNSEL FOR THE ASSESSEE INVITED OUR ATTENTION TO PARA NO S . 6.3.3 AND 6.3.4 OF THE ORDER OF LD.CIT(A) FOR THE A.Y. 2014 - 15 WHEREIN THE LD.CIT(A) IN PARA NO. 6.3.3 STAT ED THAT FOLLOWING THE DECISION OF THE TRIBUNAL IN ASSESSEE S OWN CASE FOR THE A.Y.2009 - 10 THE ADDITION MADE U/S. 14A OF THE ACT OUGHT TO BE DELETED . FURTHER IN THE IMMEDIATELY NEXT P ARA I.E. P ARA NO. 6.3.4 THE LD.CIT(A) STATED THAT IN VIEW OF THE AFORESAID THE ADDITION OF DISALLOWANCE MADE U/S.14A OF THE ACT BY THE ASSESSING OFFICER IS ALLOWED . THE LD. COUNSEL FOR THE ASSESSEE SUBMITS 3 ITA NOS. 4564 & 4565/MUM/2018 (A.YS. 2014 - 15 & 2015 - 16) M/S EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LTD THAT THE WORD A LLOWED HAS BEEN MODIFIED IN THE RECTIFICATION ORDER U/S. 154 OF THE ACT BY REPLACING IT WITH THE WORD DELETED. SIMILARLY, FOR THE A.Y. 2015 - 16 ALSO THE LD.CIT (A) MODIFIED HIS ORDER BY REPLACING THE WORD ALLOWED WITH THE WORD DELETED AND THIS IS ONLY A CLERICAL ERROR CREPT - IN IN THE ORDER PASSED BY THE LD.CIT(A) U/S. 250 OF THE ACT AND T HEREFORE THE PRESENT APPEALS FILED BY THE REVENUE AGAINST THE ORDERS PAS SED U/S. 154 OF THE ACT HAS NO LEGS TO STAND. 4. LD. DR VEHEMENTLY SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE ORDERS OF THE AUTHORITIES BELOW. ON A PERUSAL OF THE ORDER PASSED U/S. 154 OF THE ACT BY THE LD.CIT(A) WE FIND THAT THE LD.CIT(A) MODIFIED HIS ORDER AS THERE WERE SOME CLERICAL ERRORS WHICH CREPT IN HIS ORDERS PASSED ON 23 .03.2018 WHILE CONCLUDING HIS DECISION IN PARA NO . 6.3.4 AND 7.3.4 IN THE ORDERS PASSED U/S. 250 OF THE ACT . THE LD.CIT(A) HAS NOT GIVEN ANY INDEPENDENT FINDING AND NOT ADJUDICATED ANY GROUNDS OF APPEAL OF THE ASSESSEE BUT ONLY RECTIFIED THE CLERICAL ERRORS. IN THE CIRCUMSTANCES, THE PRESENT APPEALS FILED BY THE REVENUE AGAINST THE RECTIFICATION ORDER S PASSED U/S. 154 OF THE ACT DATED 04.05.2018 BY THE LD.CIT(A) HAVE NO LEGS TO STAND. 6. WE ALSO NOTICED THAT THE REVENUE HAS ALREADY FILED APPEALS AGAINST THE ORDERS PASSED BY THE LD.CIT(A) U/S. 250 OF THE ACT FOR THESE 4 ITA NOS. 4564 & 4565/MUM/2018 (A.YS. 2014 - 15 & 2015 - 16) M/S EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LTD ASSESSMENT YEARS AND THE TRIBUNAL IN IT A.NO S. 4079 & 4080/MUM/2018 DATED 12.12.2019 DISPOSED OFF SUCH APPEALS OF THE REVENUE WHICH WERE FILED AGAINST T HE ORDER PASSED BY THE LD.CIT(A) DATED 23 .03.2018 U/S. 250 OF THE ACT. 7. IN THE RESULT APPEAL S OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 28 TH FEBRUARY , 2020 SD/ - SD/ - ( MANOJ KUMAR AGGARWAL ) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 28 / 02 / 2020 GIRIDHAR, SR.PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER (ASSTT. REGISTRAR) ITAT, MUM