ITO WA, Tiruchengode V. C.Gopalan, Namakkal

MA 102/CHNY/2020

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 4113 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 10 month(s) 16 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-05-2022
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 14-07-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Reopening of assessment; TDS
• Section: 147

Judgement Text

आयकर अपील य अ धकरण, ‘ बी’ यायपीठ, चे नई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘B’ BENCH, CHENNAI ी वी .द ु गा राव, या यक सद य एवं ी जी.मंज ु नाथ, लेखा सद य के सम$ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER Misc. Petition N o. 1 0 2 / C hn y/ 2 0 2 0 (In ITA No. 9 4 1/ C hn y/ 2 0 1 9) ( नधा रणवष / A s s es s m ent Y e ar : 20 09 - 1 0) The Income Tax Officer, Ward-2, Tiruchengode V s Mr. C.Gopalan M.K.Palayam, Vadugapalayam PO, Mallasamudram, Tiruchengode TK Namakkal-637 503. PA N: A FQ P G 0 5 5 9 M (अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओरसे/ Appellant by : Mr. AR.V. Sreenivasan, Addl.CIT यथ क ओरसे/Respondent by : Mr. I. Dinesh, Advocate स ु नवाईक तार%ख/D a t e o f h e a r i n g : 27.05.2022 घोषणाक तार%ख /D a t e o f P r o n o u n c e m e n t : 31.05.2022 आदेश / O R D E R PER G. MANJUNATHA, AM: The Revenue has filed present Miscellaneous Application against order of the Tribunal in ITA No.941/Chny/2019 dated 04.02.2020 relevant to the assessment year 2009-10. 2. The learned DR present for the Revenue referring to Misc. Application filed by the Revenue narrated facts of the case and mistakes stated to be apparent on record from order of the Tribunal dated 04.02.2020. The learned DR further submitted that although the Revenue has filed appeal against 2 Misc.Petition No.102/Chny/2020 order of the learned CIT(A) and challenged deletion of additions made by the Assessing Officer towards disallowance of certain expenses u/s.40(a) (ia) of the Act for non-deduction of TDS u/s.194C of the Income Tax Act, 1961, but the Tribunal has dismissed appeal filed by the Revenue and quashed reassessment order passed by the Assessing Officer and thus, said findings of the Tribunal constitute mistake apparent on record, which needs to be rectified u/s.254(2) of the Income Tax Act, 1961. 3. The learned AR for the assessee, on the other hand, referring to the order of the Tribunal submitted that although there is no ground from the revenue on the issue of reopening, but fact remains that the learned CIT(A) has also observed in his order on the issue of reopening in light of provisions of section 147 of the Act, while deleting additions made towards disallowance u/s.40(a)(ia) of the Act, and thus, the Tribunal has rightly dismissed appeal filed by the Revenue on very same observations. Therefore, it cannot be said that there is mistake apparent on record, which can be rectified u/s.254(2) of the Income Tax Act, 1961. 3 Misc.Petition No.102/Chny/2020 4. We have heard both the sides and considered Misc. Application filed by the Revenue along with order of the Tribunal in ITA No.941/Chny/2019 dated 04.02.2020. We find that although there is no ground from the Revenue on the reopening of assessment and its validity, but the Tribunal has dismissed appeal filed by the Revenue on the issue of reopening of assessment by holding that there was no failure on the part of the assessee to disclose truly and fully relevant material facts necessary for reopening of assessment and thus, reopening of assessment is invalid. We further noted that the learned CIT(A) has upheld reopening of assessment challenged by the assessee, however, deleted additions made towards disallowance of certain expenses u/s.40(a)(ia) of the Act. The Revenue has challenged findings of the learned CIT(A), however, there was no appeal from the assessee on reopening of assessment. The Tribunal has dismissed appeal filed by the Revenue and quashed reassessment order on the ground that reopening of assessment is invalid, even though there was no ground from the Revenue. Therefore, we are of the considered view that said findings of the Tribunal constitute mistake apparent on record, which can be rectified u/s.254(2) 4 Misc.Petition No.102/Chny/2020 of the Income Tax Act, 1961. Thus, we recall order of the Tribunal in ITA No.941/Chny/2019 dated 04.02.2020 and direct the Registry to post the appeal for hearing in due course and inform both the parties. 5. In the result, Misc. Application filed by the Revenue is allowed in terms of our observations made hereinabove. Order pronounced in the open court on 31 st May, 2022 Sd/- Sd/- ( वी.द ु गा राव) (जी.मंज ु नाथ) (V.Durga Rao) (G.Manjunatha) )या यक सद+य /Judicial Member लेखा सद+य / Accountant Member चे)नई/Chennai, .दनांक/Dated 31 st May, 2022 DS आदेश क त2ल3प अ4े3षत/Copy to: 1. Appellant 2. Respondent 3. आयकर आय ु 5त (अपील)/CIT(A) 4. आयकर आय ु 5त/CIT 5. 3वभागीय त न9ध/DR 6. गाड फाईल/GF.