Shri Rameshchandra Tulsidas Agrawal, Vapi V. The Income Tax Officer, Ward-7, Vapi

MA 05/SRT/2021

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3235 (ITAT-SURAT)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 04-10-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 07-06-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ANUPAMA SINGLA
• Assessee Lawyers: H V GANDHI LD
• Section: 254(2); 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER MISCELLANEOUS APPLICATION NO.05/SRT/2021 (AY 2012-13) (ARISING OUT OF ITA NO.3137/AHD/2016) (H EARING IN VIRTUAL COURT) SHRI RAMESHCHANDRA TULSIDAS AGRAWAL, PROP. MANISH SCRAP TRADERS, 320/15, 40, SHED AREA, GIDC, VAPI, GUJARAT 396 195. PAN: ABEPA 6873 F VS THE INCOME TAX OFFICER, WARD-7, VAPI. ASSESSEE / APPELLANT REVENUE /RESPONDENT ASSESSEE BY SHRI H.V.GANDHI - LD.AR REVENUE BY MS. ANUPAMA SINGLA SR. DR DATE OF HEARING 17 . 09 .2021 DATE OF PRONOUNCEMENT 04 . 10 .2021 ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. THIS MISCELLANEOUS APPLICATION IS FILED BY THE ASSESSEE FOR SEEKING RECTIFICATION IN THE ORDER DATED 10.12.2020. THE LD. AUTHORISED REPRESENTATIVE (AR) OF THE ASSESSEE SUBMITS THAT SOLE GROUND OF APPEAL RAISED BY THE ASSESSEE WAS RELATED WITH THE DISALLOWANCE OF INTEREST EXPENSES FOR WANT OF NON- DEDUCTION OF TAX AT SOURCE WHILE MAKING PAYMENT OF INTEREST. THE ASSESSEE PAID INTEREST TO NON-BANKING FINANCE COMPANY (NBFC). THE ASSESSEE MADE SUBMISSIONS THAT THE RECIPIENT OF THE INTEREST HAS INCLUDED THE SAID INTEREST INCOME IN COMPUTING THEIR TOTAL INCOME AND PAID TAX THEREON. THE ASSESSEE FILED THE CERTIFICATE OF CA THAT ONE OF THE RECIPIENT HAS INCLUDED THE SAID MA NO.05/SRT/2021 FOR A.Y. 2012-13 SHRI RAMESHCHANDRA TULSI9DAS AGRAWAL, VAPI 2 INTEREST INCOME IN THEIR INCOME AND HAD PAID TAX THEREON. THE TRIBUNAL AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE ALLOWED THE APPEAL SUBJECT TO VERIFICATION OF THE FACT THAT IF THE RECIPIENT HAD INCLUDED INTEREST IN THEIR TOTAL INCOME HAD PAID TAX THEREON, NO DISALLOWANCE CAN BE MADE IN THE HANDS OF THE ASSESSEE. THE TRIBUNAL DIRECTED THE ASSESSING OFFICER TO VERIFY THE FACT AND ALLOW APPROPRIATE RELIEF TO THE ASSESSEE IN ACCORDANCE WITH LAW. THE LD.AR OF THE ASSESSEE SUBMITS THAT IN TERMS OF THE DIRECTION OF TRIBUNAL IN ORDER DATED 10.12.2020, THE AO VERIFIED THE FACT AND DELETED THE DISALLOWANCE IN HIS ORDER GIVING EFFECT DATED 12.04.2021. HOWEVER, THE ORDER DATED 12.04.2021 WAS WITHDRAWN BY AO IN HIS SUBSEQUENT ORDER PASSED UNDER SECTION 154 OF THE ACT. THE ORDER PASSED UNDER SECTION 154 OF THE ACT WAS RECEIVED TO THE ASSESSEE ON 26.04.2021, HENCE, THE ASSESSEE HAS FILED PRESENT APPLICATION FOR APPROPRIATE DIRECTION TO THE AO. 2. ON THE OTHER HAND, THE LD. SENIOR DEPARTMENTAL REPRESENTATIVE (SR. DR) FOR THE REVENUE SUBMITS THAT THE LD.AR OF THE ASSESSEE HAS NOT POINTED OUT ANY MISTAKE APPARENT IN THE ORDER, WHICH MAY BE RECTIFIED BY INVOKING THE PROVISIONS OF SECTION 254(2) OF THE ACT. IF THE ASSESSEE HAS ANY GRIEVANCE, HE MAY TAKE APPROPRIATE PROCEEDINGS TO THE RECOURSE KNOWN TO LAW AND PRESCRIBED IN THE INCOME TAX ACT. IN ABSENCE OF ANY MISTAKE APPARENT IN THE ORDER, THE ORDER CANNOT BE RECTIFIED. MA NO.05/SRT/2021 FOR A.Y. 2012-13 SHRI RAMESHCHANDRA TULSI9DAS AGRAWAL, VAPI 3 3. ON THE SUBMISSION OF LD.SR.DR FOR THE REVENUE, WE AGAIN ASK THE LD.AR OF THE ASSESSEE TO POINT OUT ANY SPECIFIC MISTAKE APPARENT, WHICH CAN BE RECTIFIED BY THIS BENCH. THE LD.AR OF THE ASSESSEE FAIRLY AGREED THAT THERE IS NO MISTAKE IN THE ORDER DATED 10.12.2020, HOWEVER, THE HONBLE BENCH MAY DIRECT THE AO TO CONSIDER THE MATTER IN ACCORDANCE WITH DIRECTION OF THE BENCH IN ITS ORDER DATED 10.12.2020. 4. WE HAVE CONSIDERED THE SUBMISSION OF BOTH THE PARTIES AND HAVE GONE THROUGH THE ORDER DATED 10.12.2020 ORDER PASSED BY THE AO WHILE GIVING EFFECT TO THE ORDER OF TRIBUNAL VIDE HIS ORDER DATED 12.04.2021 AND THE SUBSEQUENT ORDER PASSED UNDER SECTION 154 OF THE ACT, WITHDRAWING THE RELIEF IS GRANTED TO THE ASSESSEE IN TERMS OF ORDER OF TRIBUNAL. WE FIND THAT THE AO INITIALLY WHILE FOLLOWING THE DIRECTION OF TRIBUNAL, VERIFIED THE FACT AND GRANTED RELIEF TO THE ASSESSEE. HOWEVER, THE RELIEF GRANTED TO THE ASSESSEE WAS WITHDRAWN BY AO ON THE SAME DAY IN ORDER PASSED UNDER SECTION 154 OF THE ACT. WE FIND THAT THE AO PASSED THE SUBSEQUENT ORDER WITHOUT GIVING OPPORTUNITY OF HEARING. CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THE LD.AR OF THE ASSESSEE FAILED TO POINT OUT ANY MISTAKE APPARENT IN THE ORDER DATED 10.12.2020. THEREFORE, THE APPLICATION FILED BY THE ASSESSEE UNDER SECTION 254(2) OF THE ACT IS DISMISSED. HOWEVER, THE ASSESSEE IS AT LIBERTY TO MOVE APPROPRIATE APPLICATION/APPEAL/REPRESENTATION TO THE APPROPRIATE AUTHORITY IN ACCORDANCE WITH THE PROVISIONS OF INCOME TAX ACT. MA NO.05/SRT/2021 FOR A.Y. 2012-13 SHRI RAMESHCHANDRA TULSI9DAS AGRAWAL, VAPI 4 5. IN THE RESULT, MISCELLANEOUS APPLICATION FILED BY THE ASSESSEE IS DISMISSED. ORDER ANNOUNCED ON 04 OCTOBER, 2021 AT THE TIME OF HEARING IN VIRTUAL COURT HEARING. SD/- SD/- (DR ARJUN LAL SAINI) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER SURAT, DATED: 04/10/2021 / SGR* COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR 6. GUARD FILE BY ORDER / / TRUE COPY / / SR.PVT. SECRETARY, ITAT, SURAT