Torrent Power Limited, Ahmedabad V. The ACIT, Circle-4(1)(2), Ahmedabad

MA 17/AHD/2023

AI Insights

The case involves Torrent Power Limited, which filed a Miscellaneous Application (M.A No.17/Ahd/2023) against the order of the ITAT concerning the assessment year 2013-14. The application pointed out that additional grounds of appeal and certain items of miscellaneous income were not adjudicated in the original ITAT order. The assessee argued that these omissions constituted a mistake apparent from the record under section 254(2) of the Income Tax Act. The ITAT agreed with the assessee, acknowledged the oversight, and rectified the order to include the necessary adjudications, setting a date for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135602 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 18-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 30-03-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 30-01-2023
• Laws Referred To: Section 254(2) of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80IA; 254(2); 153

Judgement Text

आयकर आयकरआयकर आयकर अपी अपीअपी अपीलीय लीयलीय लीय अिधकरण अिधकरणअिधकरण अिधकरण, अहमदाबाद अहमदाबादअहमदाबाद अहमदाबाद यायपीठ यायपीठ यायपीठ यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’ D’’ BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER And SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER M.A No.17/Ahd/2023 in आयकर अपील सं./ITA No. 2047/AHD/2018 With CO. No. 120/Ahd/2019 िनधा रण िनधा रणिनधा रण िनधा रण वष वष वष वष /Asstt. Year: 2013-14 M/s. Torrent Power Limited, Torrent House, Off. Ashram Road, Ahmedabad-380009. PAN: AACCT0294J Vs. A.C.I.T., Circle-4(1)(2), Ahmedabad. (Applicant) (Respondent) Assessee by : Shri Vartik Choksi, A.R Revenue by : Shri Atul Pandey, Sr. D.R सुनवाई क तारीख/Date of Hearing : 31/03/2023 घोषणा क तारीख /Date of Pronouncement: 19/04/2023 आदेश आदेशआदेश आदेश/O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: The assessee by way of this Miscellaneous Application has pointed out mistake apparent from the record in the order of the ITAT within the meaning of the provision of section 254(2) of the Act and further requested to rectify the same. M.A No.17/Ahd/2023 In ITA No.2047/Ahd/2018 With C.O.No.120/Ahd/2019 A.Y 2013-14 2 2. The assessee in the Miscellaneous Application has pointed out that it has raised additional ground of appeal vide letter dated 22/10/2021, which was duly reproduced by the ITAT in its order vide paragraph No. 149.1 of the order but the same was not adjudicated inadvertently. Thus, it was prayed that the mistake in the order has been crept in the order of the ITAT which requires to be rectified. 2.1 It was further pointed out that the assessee has shown certain miscellaneous income in the AY 2012-13 comprising of following items: Sr.No. Particulars Amount (in Rs.) 1. Incentive income 16,88,994 2. Invoice TCD income 14,53,059 3. Miscellaneous receipts 31,53,127 Total 62,95,181 Likewise, the assessee has shown certain miscellaneous income in the AY 2013-14 comprising of following items: Sr.No. Particulars Amount (in Rs.) 1. Incentive income 16,42,704 2. Invoice TCD income 24,01,431 3. GSPL Credit for the period 83,42,041 4. Congestion Charges Payment 1,53,052 5. Recovery from Vendors towards Contractual Obligation 1,82,000 6. Refund of excess demurrage charges 47,000 7. Transport Recovery from employees 42,202 8. Miscellaneous Receipts 40,521/- Total 1,28,50,949 2.2 In the AY 2012-13, the assessee with respect to Miscellaneous income claimed deduction u/s 80IA of the Act, which was denied by the AO. However, the ITAT in the AY 2012-13 has decided the issue in favour of the assessee vide paragraph No. 90 of the said M.A No.17/Ahd/2023 In ITA No.2047/Ahd/2018 With C.O.No.120/Ahd/2019 A.Y 2013-14 3 order. However, in the year under dispute the miscellaneous receipt in addition to the receipts in the AY 2012-13 discussed above also comprised of many items as elaborated below: 3. GSPL Credit for the period 83,42,041 4. Congestion Charges Payment 1,53,052 5. Recovery from Vendors towards Contractual Obligation 1,82,000 6. Refund of excess demurrage charges 47,000 7. Transport Recovery from employees 42,202 8. Miscellaneous Receipts 40,521/- Total 87,66,295/- 3. However, the ITAT while adjudicating the impugned miscellaneous receipt has referred to the A.Y. 2012-13 comprising of 3 items of receipts as discussed above. Thus, the miscellaneous receipt listed in table 2 at serial No. 3 to 7 were not part of miscellaneous receipt in the earlier year. However, the ITAT has decided the issue on hand of miscellaneous receipt after making reference to the A.Y. 2012-13. Therefore, the miscellaneous receipt contained at serial No. 3 to 7 requires to be adjudicated independently and separately whether they are eligible for deduction u/s 80IA of the Act. Thus, the mistake has happened in the order of the ITAT inadvertently which required to be rectified. 3.1 The ld. AR also pointed out that the decision of ITAT for the AY 2012-13 with respect to the miscellaneous receipts is contained in Para 90 but the ITAT inadvertently has referred the Para 92 of the order which deals with the receipt of store billing charges. 4. On the other hand, the Ld. DR could not controvert the argument advanced by the Ld. counsel for the assessee and left the issue at the discretion of Bench. 5. We have heard the rival contentions of both the parties and perused the materials available on record. Admittedly, the assessee has raised additional ground of appeal vide M.A No.17/Ahd/2023 In ITA No.2047/Ahd/2018 With C.O.No.120/Ahd/2019 A.Y 2013-14 4 letter dated 22/10/2021, which is also evident from the order of the ITAT. However, the ITAT inadvertently has not adjudicated the additional ground of appeal as discussed above. Thus, there is a mistake in the order of the ITAT which needs to be rectified within the meaning of provision of section 254(2) of the Act. 5.1 Regarding, the second grievances of the assessee, we note that the ITAT while adjudicating the issue of miscellaneous receipt has made references to the A.Y. 2012-13. But in the earlier AY i.e. 2012-13, there were only three items under miscellaneous receipts whereas in the year in dispute there are many items of miscellaneous receipt besides the three of miscellaneous receipts. The breakup of the items of miscellaneous receipts has already been elaborated in the preceding paragraph. Indeed, the items of miscellaneous receipts listed on S. Nos. 3 to 7 in the above table needs to be independently adjudicated without making any reference to the three items of miscellaneous receipt pertaining to the A.Y. 2012-13. Thus, we are of the view that the miscellaneous receipt listed at serial no. 3 to 7 of the table reproduced above needs to be adjudicated independently. Thus, there is a mistake in the order of the ITAT which requires to be rectified within the meaning of provision of section 254(2) of the Act. 5.2 Moving further, we find that the ITAT has made wrong refence to the Para 92 while adjudicating the issue of the Miscellaneous receipts in the year in dispute. The correct Para which needs to be referred as para 90 of the order. Thus, the Para No. 153 of the order is rectified as under: At the outset, we note that the issues raised by the assessee in its grounds of cross objection for the A.Y. 2013-14 are identical to the issues raised by the assessee in C.O No.41/Ahd/2019 for the assessment year 2012-13. Therefore, the findings given in CO No.41/Ahd/2019 shall also be applicable for the year under consideration i.e AY 2013-14. The objection of the assessee for the assessment year 2012-13 has been decided by us vide paragraph No.90 of this order partly in favour of the assessee. The learned AR and DR also agreed that whatever will be the findings for the assessment year 2012-13 shall also be applied for the year under consideration i.e AY 2013-14. Hence, the ground of cross objection filed by the assessee is hereby partly allowed. M.A No.17/Ahd/2023 In ITA No.2047/Ahd/2018 With C.O.No.120/Ahd/2019 A.Y 2013-14 5 5.3 In view of the above, we recall the order of the ITAT to the extent of non adjudication of additional ground of appeal and certain miscellaneous receipt as discussed above and fix the same for fresh hearing dated 27/04/2023. As the date of hearing has been pronounced in the open court the requirement of issuing notice intimating the date of hearing is dispensed with. Hence, the Miscellaneous Application of the assessee is allowed. 6. In the result, the Miscellaneous Application filed by the assessee is allowed. Order pronounced in the Court on 19/04/2023 at Ahmedabad. Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER (True Copy) Ahmedabad; Dated 19/04/2023 Manish/Tanmay आदेश आदेशआदेश आदेश क क क क ितिलिप ितिलिप ितिलिप ितिलिप ेिषत ेिषत ेिषत ेिषत/Copy of the Order forwarded to : आदेशानुसार आदेशानुसारआदेशानुसार आदेशानुसार/BY ORDER, उप उपउप उप/सहायक सहायकसहायक सहायक पंजीकार पंजीकारपंजीकार पंजीकार (Dy./Asstt.Registrar) आयकर आयकरआयकर आयकर अपीलीय अपीलीयअपीलीय अपीलीय अिधकरण अिधकरणअिधकरण अिधकरण, अहमदाबाद अहमदाबादअहमदाबाद अहमदाबाद / ITAT, Ahmedabad 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबंिधत आयकर आयु / Concerned CIT 4. आयकर आयु (अपील) / The CIT(A) 5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण / DR, ITAT, 6. गाड फाईल / Guard file.