M/s. Atul Ltd., Ahmedabad V. The DCIT(OSD) Range-1, Ahmedabad

MA 20/AHD/2023

AI Insights

The case involves the Income Tax Appellate Tribunal (ITAT) in Ahmedabad, which addressed two Miscellaneous Applications (MAs) related to earlier ITA orders concerning Atul Limited for the assessment year 2009-10. The Revenue filed MA No.1/Ahd/2023 to correct the amount of disallowance mentioned in the ITAT's order, while the assessee filed MA No.20/Ahd/2023 to clarify the inclusion of profits from captive power and co-gen plants in the disallowance. The Tribunal found merit in both applications, leading to the recall of the order for re-adjudication of the specific ground related to the disallowance of deduction under section 80IA.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133632 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 18-07-2023
• Appeal Filed By: Assessee
• Order Result: AllowedAllowed
• Bench Allotted: D
• Next Hearing Date: 20-04-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 08-02-2023
• Other Referred Cases: Gujarat Alkalies & Chemicals Ltd.
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80IA; 254(2)

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ ‘D’ अहमदाबाद। अहमदाबाद।अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD ] BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER Misc. Application No.01/Ahd/2023 IN ITA No.1732/Ahd/2015 Assessment Year :2009-10 DCIT(OSD), Range-1 Ahmedabad. Vs. Atul Limited 3 rd Floor, Ashoka Chambers Rasala Marg, Ellisbridge Ahmedabad 380009. Misc. Application No.20/Ahd/2023 IN ITA No.1732/Ahd/2015 Assessment Year :2009-10 AND Misc.Application No.16/Ahd/2023 IN ITA No.1197/Ahd/2015 Assessment Year :2009-10 Atul Limited 3 rd Floor, Ashoka Chambers Rasala Marg, Ellisbridge Ahmedabad 380009. Vs. DCIT(OSD), Range-1 Ahmedabad. अपीलाथ / (Appellant) यथ /(Respondent) Assessee by : Shri S.N. Soparkar, Sr.Advocate Revenue by : Shri Alpesh Parmar, Sr.DR स ु नवाई क तार ख/Date of Hearing : 21/04/2023 घोषणा क तार ख /Date of Pronouncement: 19/07/2023 आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER The above Misc. Applications have been filed by the Revenue and the assessee seeking rectification of the order of the ITAT dated MA No.1 & 20/Ahd/2023 2 12.07.2022 passed in ITA No.1732/Ahd/2015 & ITA No.1197/Ahd/15. 2. At the outset, the ld.counsel for the assessee submitted that the “MA. No.16/Ahd/2023 in ITA No.1197/Ahd/2015” has mistakenly filed, as the ITA No.1197/Ahd/2015 mentioned therein was incorrectly written and to rectify the same, the assessee has again filed another Misc. Application being MA No.20/Ahd/2023 in ITA No.1732/Ahd/2015, and therefore, the assessee withdraws the MA No.16/Ahd/2023, as being of no relevance for adjudication. In view of this submission of the ld.Sr.Counsel for the assessee, we allow the assessee to withdraw the same, and proceed to adjudicate the remaining two MAs. viz. MA No.1/Ahd/2023 by the Revenue and MA No.20/Ahd/2023 by the assessee. MA No.1/Ahd/2023 and MA No.20/Ahd/2023 filed in ITA No.1732/Ahd/2015 dt.12/07/15 3. In the MA of the Revenue, MA No.1/Ahd/2023, it is pleaded interalia that though the counsel for the assessee admitted that the issue of disallowance of deduction under section 80IA is covered against the assessee by the decision of the ITAT in its case for Asst.Year 2005-06, however, the ITAT in the impugned order albeit upheld the disallowance made by the Revenue, but while mentioning the amount of disallowance, the ITAT has mentioned the amount of deduction as “Rs.85,11,361/-“only instead of actual disallowance of Rs.21,42,48,271/- as raised in the ground no.3 in ITA No.1732/Ahd/2023. It is therefore pleaded that this being apparent mistake crept in the impugned order, the same requires to be rectified and to that extent the impugned order be recalled for MA No.1 & 20/Ahd/2023 3 modification. The relevant pleadings contained in the Revenue’s MA read as under: “3.1 On examination of case records, it is found that in paragraph 66, the ITAT took up the issue relating to disallowance of deduction of Rs.21,42,48,271/- u/s.80IA of the IT At on the new power plant of the assessee. In para 68 the ITAT noted that counsel for the assessee admitted that the issue was covered against the assessee in its own case for Asst.Year 2005-06, hence the ITAT allowed Revenue’s appeal and upheld the disallowance. However, while mentioning the amount of disallowance being upheld the ITAT has mentioned the amount as Rs.85,11,361/- only instead of actual disallowance of Rs.21,42,48,271/-. 3.2 The above apparent mistake in the combined order passed by the Hon’ble ITAT requires to be rectified. Therefore, an application for rectification of the said mistake is to be filed.” 4. On the other hand, the assessee in its application in MA No.20/Ahd/2023 has pleaded that though the issue has been admitted to be decided against the assessee by the earlier decision of the ITAT, but there was a factual error in the submissions of the counsel of the assessee that the amount of the impugned deduction under section 80IA of Rs.21,42,48,271/- was in respect of three categories of plants viz. (i) New Power Plant, (ii) Captive Power Plant, and (iii) Cogen Plant. The view taken by the ITAT, based on the submissions of its counsel was correct with respect to New Power Plant, but with respect to captive power plant and co-gen plant, the ITAT had allowed the claim of deduction under section 80IA vide its order in ITA No.1681/Ahd/2011 (ground no.6 for Asst.Year 2005-06) following the decision of jurisdictional High Court in the case Gujarat Alkalies& Chemicals Ltd. The ld.counsel for the assessee, thus, submitted that since the amount of deduction under section 80IA of Rs.21,42,48,271/- included the profits eligible for deduction in respect of captive power plant and co-gen plant also, which the ld.counsel missed to point out while arguing the matter before the MA No.1 & 20/Ahd/2023 4 Tribunal, in the interest of justice, the impugned order dated 12.7.2022 be recalled to the limited extent of reconsidering the issue on the basis of precedents available in the assessee’s case in the preceding year. 5. We have heard both the parties and gone through the impugned order of the ITAT. Weighing arguments of both the sides, we find merit in the contentions of both the sides so as to invoke provisions of section 254(2) of the Act for recall of the impugned order for limited purpose of re-adjudicating ground no.3 raised by the Revenue in its appeal being ITA No.1732/Ahd/2015. Accordingly, we recall the impugned order qua ITA No.1732/Ahd/2015 to re-adjudicate the issue vis-à-vis ground no.3 as aforesaid. Registry is directed to list the above appeal for hearing on 03 rd October 2023 after issuing due notices to both the parties. 6. In the result, both the MA of the Revenue and the assessee in MA No.1/Ahd/2023 & MA No.20/Ahd/2023 are allowed. MA No.16/Ahd/2023 is dismissed as withdrawn. Order pronounced in the Court on 19 TH July, 2023 at Ahmedabad. Sd/- Sd/- (T.R. SENTHIL KUMAR) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad,dated 19/07/2023 vk*