Assistant Commissioner of Income-tax, Circle - 2, Kolhapur V. The Sindhudurg Dist Central Co.op Bank Ltd, Sindhudurg

MA 188/PUN/2022

AI Insights

The case involves a Miscellaneous Application by the Revenue seeking rectification of an earlier Tribunal order concerning the Sindhudurg Dist. Central Co-op. Bank Ltd. The original order, based on a decision by the Hon'ble Bombay High Court, was challenged by the Revenue, which argued that there was a mistake apparent from the record. However, the Tribunal, referencing various Supreme Court and High Court decisions, concluded that the application was essentially seeking a review of the order, which is beyond the scope of section 254(2) of the Income-tax Act. The Tribunal dismissed the application, affirming that no rectifiable mistake was present in the original order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124421 (ITAT-PUNE)
• Duration Of Justice: 7 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-01-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 19-01-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 19-06-2022
• Other Referred Cases: Pr. C.I.T. Vs. Solapur District Central Co-op. Bank Ltd., ACIT Vs. Saurashtra Kutch Stock Exchange Ld., CIT Vs. Ramesh Electric & Trading Company
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER M.A. No. 188/PUN/2022 Arising out of ITA No. 378/PUN/2018 : A.Y. 2013-14 The Asstt. C.I.T. Circe 2, Kolhapur. Applicant Vs. The Sindhudurg Dist. Central Co-op. Bank Ltd. S.V. Phadnis, CA/Sushant Phadnis 613 E Wad, Phadnis Chambers, Shahupuri, 1 st lane, KOLHAPU – 416 001 PAN: AAABAT 4262 F Respondent Applicant by : Shri M.G. Jasnani Respondent by : None Date of Hearing : 20-01-2023 Date of Pronouncement : 24-01-2023 ORDER PER SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER This Misc. application filed by the Revenue arises out I.T.A. No. 378/PUN/2018 for A.Y. 2013-14, order dated 14-07-2021. 2. We have perused the Misc. application of the Revenue and gone through our order dated 14-07-2021. Our order dated 14-07-2021 is based on the decision of Hon‟ble Bombay High Court in the case Pr. C.I.T. Vs. Solapur District Central Co-op. Bank Ltd. 428 ITR 306 (Bombay). 3. At the time of hearing, the ld. D.R could not establish any mistake apparent from record in the order of the Tribunal which is the power and scope as mandated u/s 254(2) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”). That on perusal of our order, there is no mistake much less apparent from record. There are series of decisions by the Hon'ble Supreme Court as well as Hon'ble High Court expounding scope of exercising powers under section 254(2) of the Act. We 2 M.A. No. 188/PUN/2022 Sindhudurg Dist. Central Co-op. Bank Ltd. A.Y. 2013-14 do not deem it necessary to recite and recapitulate all of them, but suffice to say that core of all these authoritative pronouncements is that power for rectification under section 254(2) of the Act can be exercised only when mistake, which is sought to be rectified, is an obvious and patent mistake, which is apparent from the record and not a mistake, which is required to be established by arguments and long drawn process of reasoning on points, on which there may conceivably be two opinions. For fortifying this view, we make reference to the decision of the Hon'ble jurisdictional High Court in the case of ACIT Vs. Saurashtra Kutch Stock Exchange Ld., 262 ITR 146 which has been upheld by the Hon'ble Supreme Court reported in 305 ITR 227. 4. The Hon'ble Jurisdictional High Court in the case of CIT Vs. Ramesh Electric & Trading Company reported as 203 ITR 497 has held that the scope of section 254(2) is limited to rectification of mistake apparent from record itself and not rectification in error of judgment. The relevant observations of the Hon'ble High Court are as under: “The Tribunal cannot, in exercise of its power of rectification, look into some other circumstances which would support or not support its conclusion so arrived at. The mistake which the Tribunal is entitled to correct is not an error of judgment but a mistake which is apparent from the record itself.” 5. We are of considered view that in the guise of rectification, the revenue is seeking review of the order of Tribunal, which is beyond the scope of powers as envisaged u/s. 254(2) of the Act. 6. In view of the above and as per the Miscellaneous Application filed before us, we do not find any mistake, much less any apparent mistake that warrants rectification in the order of Tribunal dated 14-07-2021. The Tribunal in its own wisdom had adjudicated the appeal in ITA No. 378/PUN/2018 on merits. Therefore, 3 M.A. No. 188/PUN/2022 Sindhudurg Dist. Central Co-op. Bank Ltd. A.Y. 2013-14 we are of the considered view that the Tribunal has rightly adjudicated the issue after considering all the documents placed on record. Accordingly, Miscellaneous Application filed by Revenue is dismissed being devoid of any merit. 7. In the result, Misc. Application filed by the Revenue is dismissed. Order pronounced in the open Court on this 24 th day of January 2023 Sd sd/- (INTURI RAMA RAO) (PARTHA SARATHI CHAUDHURY) ACCOUNTANT MEMBER JUDICIAL MEMBER Pune; Dated, the 24 th January 2023 Ankam Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The PCIT Pune 4. The CIT(A)-13, Pune 5. D.R. ITAT „A‟ Bench 5. Guard File BY ORDER, Sr. Private Secretary ITAT, Pune. /// TRUE COPY /// 4 M.A. No. 188/PUN/2022 Sindhudurg Dist. Central Co-op. Bank Ltd. A.Y. 2013-14 Date 1 Draft dictated on 20-01-2023 Sr.PS 2 Draft placed before author 20-01-2023 Sr.PS 3 Draft proposed and placed before the second Member JM/AM 4 Draft discussed/approved by second Member AM/JM 5 Approved draft comes to the Sr. PS/PS Sr.PS/PS 6 Kept for pronouncement on 24-01-2023 Sr.PS/PS 7 Date of uploading of order 24-01-2023 Sr.PS/PS 8 File sent to Bench Clerk 24-01-2023 Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order