M/S. ESSEL MINING & INDUTRIES LTD, MUMBAI V. DY.COMM OF INCOME TAX CENTRAL CIRCLE-1(4) , MUMBAI

MA 208/MUM/2023

AI Insights

Essel Mining & Industrial Limited filed a Miscellaneous Application under section 254(2) of the Income Tax Act, 1961, seeking rectification of the Tribunal's earlier order which had inadvertently omitted reference to ground No.6 of their appeal. The ground pertained to the non-grant of statutory interest under section 244A. The Tribunal recognized the oversight and rectified the order to include the previously omitted ground, thereby restoring the issues of TDS credit and statutory interest to the Assessing Officer for a decision on the rectification application filed on 13/03/2019.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136044 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 14 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 25-05-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 26-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS; Rule 8D
• Section: 154; 244A; 14A; 254(2)

Judgement Text

म ु ंबई ठ “ई ”, म ु ंबई , ए ं ओम ! " ंत , ेख े म& IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “ E”, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER MA NO.208/MUM/2023 [Arising out of ITA No.1971/Mum/2022, A.Y.2013-14] Essel Mining & Industrial Limited, Industry House, 18 th Floor, 10, Camac Street,Kolkata – 700 017. PAN: AAACE-6607-L ..... ! ' /Applicant बन म Vs. Dy. CIT, Central Circle -1(4), Mumbai, 9 th Floor, Old CGO Building, M.K.Road, Mumbai 400 020. ..... ! त /Respondent ! ' * / Applicant by : Shri Yogesh Thar ! त * /Respondent by : Ms. Richa Gulati, Sr.AR ु न ई + त / Date of hearing : 26/05/2023 ,-. + त / Date of pronouncement : 11/07/2023 े"/ ORDER PER VIKAS AWASTHY, JM: The assessee has filed a Miscellaneous Application u/s. 254(2) of the Income Tax Act, 1961 [in short ‘the Act’] seeking rectification of the Tribunal order dated 28/11/2022 vide which appeal of the assessee in ITA No.1971/Mum/2022 for assessment year 2013-14 was decided. 2. Shri Yogesh Thar appearing on behalf of the assessee submitted that in para-2 of the Tribunal order dated 28/11/2022, it has been wrongly mentioned 2 MA NO.208/MUM/2023 [Arising out of ITA No.1971/Mum/2022, A.Y.2013-14] that only two grounds i.e. ground No.2 & 5 of appeal were pressed. The submissions were also made in respect of ground No.6 of appeal. The ld. Authorized Representative of the assessee submits that a reference to ground No.6 is also required to be made in para-2 of the order. 2.1 He further submitted that in Para-6 of the order, the Tribunal decided ground No.5 of appeal restoring the issue back to the file of Assessing Officer to examine the TDS credit allowable to the assessee. The TDS credit has already been allowed by the Assessing Officer. The assessee had filed an application dated 13/03/2019 u/s. 154 of the Act before the Assessing Officer. A prayer was made to dispose of the said application. 2.2 The ld. Authorized Representative of the assessee pointed that ground No.6 of the appeal was with regard to non-grant of statutory interest u/s. 244A of the Act. The said issue also form part of the rectification application dated 13/03/2019, therefore, prayer was made to decide ground No.6 in terms similar to ground No.5. 3. Ms. Richa Gulati representing the Department opposed the rectification application filed by the assessee. 4. Both sides heard. A perusal of the appeal file shows that a copy of rectification application dated 13/03/2019 filed by the assessee before the Assessing Officer is available on record. It appears that due to oversight the said application remain to be considered while deciding grounds raised by the assessee. This has resulted in mistake apparent from records, which needs to be rectified. In para-2 of the order it is mentioned that only two grounds i.e. ground No.2 & 5 were stated to be pressed. Para-2 of the order requires rectification, the same now reads as under: 3 MA NO.208/MUM/2023 [Arising out of ITA No.1971/Mum/2022, A.Y.2013-14] “2. Shri Yogesh Thar appearing on behalf of the assessee submits at the outset that he would be pressing three grounds , i.e. ground No.2, 5 and 6 of the grounds of appeal. In ground No.2 of the appeal the assessee has prayed for a direction to the Assessing Officer to following the directions of the CIT(A) while passing the order giving effect to the order of CIT(A). The ld. Departmental Representative submits that the CIT(A) while adjudicating the appeal of the assessee for Assessment Year 2013-14 vide order dated 30/01/2017 directed the Assessing Officer to compute disallowance under Rule 8D of the Income Tax Rules, 1962( in short ‘the Rules’) only on shares yielding dividend income. The Assessing Officer while giving effect to the order of CIT(A) has not given effect to the aforesaid direction. In fact the Assessing Officer has missed out in giving effect to the said directions of the CIT(A). The ld. Authorized Representative for the assessee further submits that in ground No.5 of the appeal the assessee is praying for direction to the Assessing Officer to grant TDS credit of Rs.24,62,992/-. The Assessing Officer has erred in not granting full credit of the TDS amount. The ld. Authorized Representative for the assessee submitted that the CIT(A) while deciding appeal of the assessee went on a different tangent, instead of adjudicating limited issue. The CIT(A) over stepped his jurisdiction in re-adjudicating the issue of computation disallowance u/s. 14A r.w.r. 8D. The assessee was in appeal against the order giving effect to the order of CIT(A) with a limited prayer for directions to Assessing Officer to follow the order of CIT(A) on all the issues.” 5. In view of the rectification application filed by the assessee before the Assessing Officer ground No.5 & 6 of the appeal needs to be restored to the Assessing Officer for disposing of the said application of the assessee. 4 MA NO.208/MUM/2023 [Arising out of ITA No.1971/Mum/2022, A.Y.2013-14] Consequently, para-6 of the order needs rectification and would now be read as under: “6. In ground No.5 of appeal, the assessee has prayed to allow grant of TDS credit in full. In ground No.6 of the appeal, the assessee has prayed for granting of interest u/s.244A(1) and 244A(1A) of the Act. The assessee has filed rectification petition u/s. 154 of the Act before the Assessing Officer on 13/03/2019, a copy of same is placed on record. The Assessing Officer is directed to decide the said rectification petition expeditiously. The ground of appeal No.5 & 6 are allowed for statistical purpose.” 6. Consequent to rectification carried out in the order, para-7 of the order also needs to be rectified, the same be now read as under: “ 7. No submissions were made by the assessee at this stage in respect of grounds No.1,3,4, & 7. Hence, these grounds are not deliberated and are left open.” 7. With the above rectification being carried out in the order dated 28/11/2022 there would be no change in final outcome of the appeal. 8. In the result, Miscellaneous Application of the assessee is allowed. Order pronounced in the open Court on Tuesday the 11 th day of July, 2023. Sd/- Sd/- (OM PRAKASH KANT) (VIKAS AWASTHY) ेख /ACCOUNTANT MEMBER /JUDICIAL MEMBER म ु ंबई/ Mumbai, / न ं /Dated 11/07/2023 Vm, Sr. PS(O/S) 5 MA NO.208/MUM/2023 [Arising out of ITA No.1971/Mum/2022, A.Y.2013-14] त ल प अ े षतCopy of the Order forwarded to : 1. '/The Appellant , 2. ! त / The Respondent. 3. ु 0त CIT 4. 1 2 ! त न , . . ., म ु बंई/DR, ITAT, Mumbai 5. 2 45 6 7 /Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, Mumbai