N.Purushothaman, Coimbatore V. DCIT, OOTY

MA 116/CHNY/2023

AI Insights

The case revolves around a miscellaneous application filed by the assessee, Shri N. Purushothaman, against an order of the Income Tax Appellate Tribunal concerning the assessment year 2011-12. The application sought rectification of what the assessee claimed was a mistake in the Tribunal's earlier decision regarding the disallowance under section 40A(3) of the Income Tax Act, 1961, specifically related to cash payments for land purchase. The CIT(A) had excluded the closing stock as of 31.03.2011 from such disallowance, a decision which the assessee argued was mistakenly overlooked by the Tribunal. However, the Tribunal found no error in their previous order and dismissed the application, affirming that the CIT(A)'s relief stood as the Revenue did not contest it.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134791 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-09-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 07-09-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 19-07-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Rectification of order
• Section: 40A(3)

Judgement Text

आयकर अपीलीय अिधकरण, ‘ए’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ᮰ी महावीर ᳲसह, उपा᭟यᭃ एवं ᮰ी मंजुनाथ. जी, लेखा सद᭭य के समᭃ BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANJUNATHA.G, ACCOUNTANT MEMBER िविवध यािचका सं / M.A. No.116/CHNY/2023 (arising in I.T.A. No. 393/CHNY/2017) िनधाᭅरण वषᭅ / Assessment Year : 2011-12 Shri N. Purushothaman, 9A, Gandhi Nagar, Karamadai, Coimbatore – 641 104. PAN: AHAPP 2626G Vs. The DCIT, Circle-1, Ooty (अपीलाथᱮ / Applicant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से /Applicant by : Shri N.V. Balaji, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri AR.V. Sreenivasan, Addl.CIT सुनवाई कᳱ तारीख/ Date of hearing : 08.09.2023 घोषणा कᳱ तारीख /Date of Pronouncement : 08.09.2023 आदेश /O R D E R PER MAHAVIR SINGH, VICE PRESIDENT: By way of this Miscellaneous Application, the assessee has requested for rectification of mistake in the order of the Tribunal in ITA No. 393/CHNY/2017 for the assessment year 2011-12, order dated 13.04.2023. 2. The ld.counsel for the assessee took us through the order of Tribunal para 11, wherein the order of CIT(A) is extracted in regard 2 M.A No.116/CHNY/2023 to the issue of disallowance u/s.40A(3) of the Income Tax Act, 1691 (hereinafter the ‘Act’). The ld.counsel particularly drew our attention to the following findings recorded by CIT(A) in para 5.2 and the relevant portion reads as under:- “The disallowance under section 40A(3) is to be restricted to that part of the payments for land in cash, where has been claimed as deduction for the financial year 2010-11 relevant for assessment year 2011-12 and what is remaining as closing stock, as on 31.03.2011 should be excluded from disallowance under section 40A(3) of the Income Tax Act, 1961 for Assessment year 2011-12. The Assessing Officer shall restrict disallowance u/s.40A(3) for cash payments for land purchase accordingly.” 3. The ld.counsel particularly stated that the CIT(A) has specifically excluded the closing stock as on 31.03.2011 from disallowance u/s.40A(3) of the Act for the assessment year 2011- 12. Subsequently, the ld.counsel took us through the grievance of assessee in para 6 of the petition, which reads as under:- “6. The petitioner submits that the order of the CIT(A) giving relief to the extent of closing stock has attained finality without any further appeal by the revenue on that issue. In view of the fact that relief given by the CIT(A) has attained finality without further appeal, the Petitioner submits that there is a mistake in the order of the Hon’ble Tribunal insofar as its observations referred to in para 4 (supra) and thus the same needs to be rectified.” Accordingly, the ld.counsel stated that once the Revenue is not in appeal, Tribunal cannot undo the relief given by CIT(A). 4. When this was confronted to ld.Senior DR, he could not controvert the above fact situation. 3 M.A No.116/CHNY/2023 5. After hearing rival contentions and going through the facts of the case, we noted that the Tribunal has dismissed the appeal of assessee, apart from that Tribunal has not done anything. We confirmed the order of CIT(A) and there is no observation that closing stock excluded by CIT(A) by disallowance u/s.40A(3) of the Act for the assessment year 2011-12, the disallowance should be retained. We find no such observation from the order of the Tribunal because Tribunal has no power to undo the relief given by the CIT(A) unless Revenue challenges that finding. Hence with these observations, we dismiss this miscellaneous application of the assessee. 6. In the result, the miscellaneous application of the assessee is dismissed. Order pronounced in the open court on 8 th September, 2023 at Chennai. Sd/- Sd/- (मंजुनाथ. जी) (MANJUNATHA.G) लेखा सद᭭य /ACCOUNTANT MEMBER (महावीर ᳲसह ) (MAHAVIR SINGH) उपा᭟यᭃ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 8 th September, 2023 RSR आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Applicant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ /CIT 4. िवभागीय ᮧितिनिध/DR 5. गाडᭅ फाईल/GF.