INTERNATIONAL HOSPITAL LTD. (before amalgamation M/s Escorts Hospital and Research Centre Ltd.), NEW DELHI V. DCIT, Circle-12(2), NEW DELHI

ITA 6553/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 3998 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-09-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 05-08-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Scheme of amalgamation
• Section: 154

Judgement Text

Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”: NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No. 6552/Del/2019 (Assessment Year: 2013-14) International Hospital ltd, Before amalgamation M/s. Escorts Heart & Super Specialty Institute Ltd) Co. Escorts Heart Institute & Research Centre, Okhla Road, Okhla, New Delhi Vs. DCIT, Circle-12(2), New Delhi (Appellant) (Respondent) PAN: AAACI9792A ITA No. 6553/Del/2019 (Assessment Year: 2013-14) International Hospital ltd, Before amalgamation M/s. Escorts Hospital and Research Centre Ltd, C/o. Escorts Heart Institute & Research Centre, Okhla Road, Okhla, New Delhi Vs. DCIT, Circle-12(2), New Delhi (Appellant) (Respondent) PAN: AAACI9792A Assessee by : Shri R. M. Mehta, Adv Revenue by: Shri Anuj Garg, Sr. DR Date of Hearing 14/09/2022 Date of pronouncement 23/09/2022 O R D E R PER ANUBHAV SHARMA, J. M.: 1. The appeals have been preferred by the Assessee companies against the orders dated 30.05.2019 of CIT(A)-34, New Delhi (hereinafter Page | 2 referred as Ld. First Appellate Authority or in short Ld. „FAA‟) against the orders dated 29.01.2019 passed u/s 154 of the Income Tax Act, 1961 (hereinafter referred as „the Act‟) by the ld AO, DCIT, Circle-12(2), New Delhi (hereinafter referred as the Ld. AO), in case of these two assessee companies, which stand amalgamated with appellant company. As common question of facts and law are involved so the both appeals are taken up together for decision and facts of ITA No. 6553/Del/2019 of M/s. Escorts Hospital and Research Centre Ltd, are taken up as foundation for discussion. 2. Brief facts of the case are that the Assessee in ITA No. 6553/Del/2019, M/s. Escorts Hospital and Research Centre Ltd, was engaged in the business of clinical establishment services and got merged with appellant International Hospital Ltd w.e.f. 01.01.2013 as per the scheme of amalgamation approved by the Hon‟ble High Court of Punjab and Haryana on December, 2013. However, in the assessment order, the name of the assessee has been mentioned as M/s Escorts Hospital and Research Centre Limited. Ld. AO observed it to be a inadvertent mistake. He also observed that during the entire course of assessment proceedings, the assessee filed its submissions on the letterhead of M/s Escorts Hospital and Research Centre Limited and the signature in the submissions was also in the name of M/s Escorts Hospital and Research Centre Limited. Ld AO considered it to be a mistake apparent from record and therefore rectified u/s 154 of the Income Tax Act, 1961. Ld CIT(A) 3. Heard and perused the record. 4. On behalf of the Assessee it was submitted that the scope of rectification u/s 154 is limited and the ld AO has tried to undo something which was a ground of appeal pending before the ld CIT(A) in challenge of the assessment order. It was submitted that in the remand report submitted before the First Appellate Authority the AO has persisted that his approach of determining the assessment order in original name of the Assessee was correct. Page | 3 5. On the other hand the ld. DR submitted there is no error in the impugned order. 6. Giving thoughtful consideration to the matter on record the bench is of considered opinion that the assessment order mentioned in para 2 about the fact that the operation of the present Assessee have been merged with appellant International Hospital Ltd w.e.f 01.01.2013 as per the scheme of amalgamation approved by the Hon‟ble Punjab and Haryana High Court on December, 2013. However, in the title of the assessment order dated 28.03.2016 the name of the Assessee was mentioned in original form instead of mentioning the name of amalgamated company i.e. International Hospital Ltd. 7. The title of any order of a judicial or quasi judicial authority cannot strictly be said to be the order or judgment itself. A judgment or order is generally a narration in the form of facts arising from cases of respective parties, point of determination and reasons for such determination. Any error in the title of the order or judgment, with regard to identity of parties or particulars of name of court, quorum or other particulars about the nature of lis and its identification details is merely defect of clerical nature. It is a mistake arising out of lack of attention and does not depict in any form that on merits of the case, the said authority has committed any illegality. As such even without any specific provision, every judicial and quasi judicial authority has inherent powers to correct the same. 8. In the case in hand, in the body of the assessment order the Ld.AO has taken cognizance of the fact of amalgamation of the assessee with International Hospital Ltd and that itself is sufficient for the purpose of assessment order indicating that the assessment has been completed keeping in mind the continuity of legal entity of assessee further into amalgamated company. In the impugned order u/s 154 also the ld AO has mentioned this fact that in the body of the order the fact of amalgamation was mentioned. Thus any error in the title of the order has Page | 4 to be considered to be a mistake apparent from the record and cannot be considered to be anything in the form redetermination of an issue. 9. The fact that the error in mentioning the correct name of the Assessee in the assessment order was one of the ground of appeal pending before the ld CIT(A) does not take away inherent power of Ld. AO to correct the mistakes apparent from the record while exercising powers of section 154. There is no question of opportunity of hearing being required in such case. There is no error in the order of the Ld. AO and the ld CIT(A) in confirming the orders of the Ld. AO. 10. Grounds have no substance. Both the appeals are dismissed. Order pronounced in the open court on 23/09/2022. -Sd/- -Sd/- (SHAMIM YAHYA) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 23/09/2022 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Page | 5 Date of dictation Date on which the typed draft is placed before the dictating member Date on which the typed draft is placed before the other member Date on which the approved draft comes to the Sr. PS/ PS Date on which the fair order is placed before the dictating member for pronouncement Date on which the fair order comes back to the Sr. PS/ PS Date on which the final order is uploaded on the website of ITAT date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the order