Rajasthan State Seeds Corporation Ltd., Pant Krishi Bhawan, Bhagwan Das Road, Jaipur V. PCIT, Jaipur-2, Jaipur

MA 18/JPR/2022

AI Insights

The case involves M/s. Rajasthan State Seeds Corporation Ltd., the appellant, who filed a Miscellaneous Application against the order of the ITAT, Jaipur Bench, dated 10-08-2022. The original dispute centered on the disallowance made under section 14A of the Income Tax Act, 1961, amounting to Rs.53,70,873, and an addition of Rs.5,99,50,737 related to subsidy receipts which were not included in the total income. The ITAT's earlier decision did not fully address the assessee's submissions, leading to this application for rectification. The Tribunal, after reviewing the submissions and the original order, concluded that there was no apparent mistake and dismissed the application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132428 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-01-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 04-01-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 13-10-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Rectification of order; Set aside
• Section: 14A; 254(2)

Judgement Text

vk;djvihyh; vf/kdj.k] t;iqjU;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR JhlaanhixkslkbZ]U;kf;dlnL; ,oaJhjkBksMdeys'kt;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: SHRI SANDEEP GOSAIN, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM Miscellaneous Application No.18/JP/2022 (Arising out of vk;djvihy la-@ITA No. 131/JP/2022) fu/kZkj.ko"kZ@AssessmentYear : 2011-12 M/s. Rajasthan State Seeds Corporation Ltd. Pant Krishi Bhawan, Bhagwan Das Road, Jaipur cuke Vs. The Pr. CIT Jaipur -2 LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAACR 8882 Q vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@Assessee by :Shri P.C. Parwal, CA jktLo dh vksj ls@Revenue by: Shri A.S. Nehra, Addl.CIT lquokbZ dh rkjh[k@Date of Hearing : 05/01/2023 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 12 /01/2023 vkns'k@ORDER PER: RATHOD KAMLESH JAYANTBHAI, AM The assessee has filed a Miscellaneous Application against ITAT, Jaipur Bench order dated 10-08-2022 for rectification of mistake u/s 254(2) of the I.T.Act by praying therein as under:- ‘’1. The applicant begs to submit that the order giving rise to the present Miscellaneous Application was received on 14.09.2022. 2. The assessee in this appeal has challenged the order passed by Ld. PCIT u/s 263 of IT Act, 1961. The Ld. PCIT in the order made disallowance of Rs.53,70,873/- u/s 14A against the agriculture income of Rs.2,28,98,887/- claimed exempt and made addition of Rs.5,99,50,737/- stating that subsidy or grant by Government has not been included in the total income and at the same time set aside the assessment order holding it to be erroneous and prejudicial to the interest of revenue. 2 MA NO. 18/JP/2022 RAJASTHAN STATE SEEDS CORPORATION LTD VS PCIT, JAIPUR-2 3. In respect of disallowance of Rs.53,70,873/- made u/s 14A, the Hon'ble ITAT at Para 7, Pg 8-9 without controverting the submission of assessee as reproduced at Pg 6-7 of the order by simply mentioning the observation of PCIT has not given any finding on this issue. 4. In respect of addition of subsidy receipt of Rs.5,99,50,737/-, the Hon'ble ITAT at Para 8, Pg 9 held that it is not convinced with the argument of assessee that the subsidy is part of the sale price as per the sample sale bills wherefrom the total value of the invoice, the subsidy receipt from the Government is reduced, but for accounting purposes the sale is booked at the gross amount and the subsidy is separately debited to grant-in-aid account against which the subsidy received from the Government is adjusted. It is further held that this is a new fact not coming either of the assessment order of the PCIT order which is to be verified with the ledger account of grant in-aid for production along with the copy of journal voucher. Thus, the finding of Hon'ble ITAT is contradictory in as much as at one hand it is concluding that the argument of assessee is not convincing and at the same time upholding the order of PCIT directing the AO to verify the facts submitted by assessee. Hence, the first paragraph of Para 8 needs to be expunged. 5. Since the above mistakes are apparent on record, it is humbly prayed to suitably modify the order w/s 254 of the IT Act and oblige.’’ 2.1 During the course of hearing, the ld. DR supported the order of the ITAT Jaipur Bench and argued that by filing the Misc. Application the assessee wants to get its order reviewed and further submitted that the Bench has applied its mind on the issues raised by the assessee judiciously and the appeal of the assessee has already been disposed off by the Coordinate Bench. In view of the facts and circumstances of the case available before the Bench at the time of hearing the decision has been taken by the coordinate bench. The ld. DR further argued on the issue of 14A of the Act in which the Bench has already mentioned in its order that the claim of the assessee does not appear to be true which indicates that the Bench has already given its verdict on the issue of 14A. As regards the claim of subsidy, it is already mentioned by the Bench in its judgement part of the order that the 3 MA NO. 18/JP/2022 RAJASTHAN STATE SEEDS CORPORATION LTD VS PCIT, JAIPUR-2 Bench is not convinced with the arguments of the AR of the assessee. Based on that he has submitted that both the issue has already been decided by the bench and there is no mistake apparent on record as such. 2.2 In the rejoinder, the ld. AR of the assessee submitted that the Coordinate Bench has not given any judgement but merely has reproduced the version of ld. Pr. CIT and that cannot be termed as decision of the Bench. The ld. AR of the assessee further submitted that there were two issues which were subject matter of appeal on which the Bench has not considered the submission of the assessee and also has not given the judgement. The ld. AR of the assessee further pointed out from the finding of the order at para 5 and para 7 and thereby submitted that the Bench has not given its independent finding and clearly reproduced the averments of the ld. Pr.CIT. Hence, there exists an apparent mistake on the decision given by the Coordinate Bench. Thus the Misc. Application filed by the assessee is maintainable. 2.3 We have heard the rival submissions and perused the facts of the case and material placed on record by the ld. AR in this miscellaneous application (MA). The Bench on being going through the contentions raised in this MA again meticulously gone through the order of the coordinate bench and found that the ld. AR did not point out any mistake which is considered as mistake apparent on the 4 MA NO. 18/JP/2022 RAJASTHAN STATE SEEDS CORPORATION LTD VS PCIT, JAIPUR-2 record so as to consider this MA, the contentions so as are in relations to the merits of the case for which the coordinate bench has already given findings on both the issues in the order of the Coordinate Bench which does not attract to review its order. In view of all these discussions mentioned hereinabove, we find that the order of the Coordinate Bench does not suffer from any infirmity. Hence, the Misc. Application filed by the assessee is dismissed. 3.0 In the result, the Miscellaneous Application filed by the assessee is dismissed. Order pronounced in the open Court on 12 -01-2023 Sd/- Sd/- ¼lanhi xkslkbZ½ ¼jkBksMdeys'kt;UrHkkbZ ½ (Sandeep Gosain) (Rathod Kamlesh Jayantbhai) U;kf;dlnL;@Judicial Member ys[kklnL;@Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 12 /01/2023 *Mishra vkns'k dh izfrfyfivxzsf’kr@Copy of the order forwarded to: 1. The Appellant- M/s. Rajasthan State Seeds Corporation Ltd. , Jaipur 2. izR;FkhZ@ The Respondent- The Pr. CIT, Jaipur-2 . 3. vk;djvk;qDr@ The ld CIT 4. foHkkxh; izfrfuf/k] vk;djvihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 5. xkMZQkbZy@ Guard File (MA No. 18/JP/2022) vkns'kkuqlkj@ By order, lgk;di athdkj@Asstt. Registrar