THE DCIT-15(1)(2), MUMBAI V. M/S. CHEMTRON SCIENCE LABORATORIES PVT. LTD, MUMBAI

MA 364/MUM/2023

AI Insights

The case involves a Miscellaneous Application filed by the Revenue seeking rectification of a Tribunal order dated 24.05.2022 under section 254(2) of the Income Tax Act, 1961. The application was deemed time barred as the Revenue received knowledge of the Tribunal's decision on 22.09.2022, and the MA was filed on 11.05.2023, well beyond the six-month period allowed for filing such applications. The Tribunal referenced the decision of the Hon'ble Bombay High Court in Daryapur Shetkari Sahakari Ginning & Pressing Factory Vs. ACIT, which clarified that the limitation period commences from the date of knowledge of the decision. The Tribunal also cited precedents that it lacks the authority to condone delays in filing MAs under section 254(2).

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133802 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-08-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 03-08-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 10-05-2023
• Other Referred Cases: Daryapur Shetkari Sahakari Ginning & Pressing Factory Vs. ACIT, Raja Malwinder Singh Vs. Union of India, Karuturi Global Ltd. Vs. DCIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rectification of order; Period of limitation
• Section: 254(2)

Judgement Text

आयकर अपीलीय अिधकरण मुंबई पीठ “सी”, मुंबई ᮰ी िवकास अव᭭थी, ᭠याियक सद᭭य एवं ᮰ी अमरजीत ᳲसह, लेखाकार सद᭭य के समᭃ IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “C”, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER एम.ए.सं. 364/मुं/2023 इन.आ.अ.सं.2386/मुं/2021 (िन.व.2018-19) M.A. NO.364/MUM/2023 in ITA No. 2386/MUM/2021 (A.Y.2018-19) The DCIT-15(1)(2) Room No. 473, 4 th Floor, Aayakar Bhavan, M.K. Road, Mumbai-400020. ...... ᮧाथᭅक/Applicant बनाम Vs. M/s Chemtron Science Laboratories Pvt. Ltd. EL-47, Electronic Zone, MIDC, Mahape, Navi Mumbai-400710. PAN: AACCC3596J ..... ᮧितवादी/Respondent ᮧाथᭅक ᳇ारा/ Applicant by : Sh. Anil Sant, Sr. DR ᮧितवादी ᳇ारा/Respondent by : Sh. Shashank Mehta सुनवाई कᳱ ितिथ/ Date of hearing : 04/08/2023 घोषणा कᳱ ितिथ/ Date of pronouncement : 04/08/2023 आदेश/ ORDER PER VIKAS AWASTHY, J.M: This Miscellaneous Application (MA) has been filed by the Revenue under section 254(2) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) seeking rectification of the Tribunal order dated 24.05.2022. 2 एम.ए.सं. 364/मुं/2023 (िन.व.2018-19) M.A. NO.364/MUM/2023 (A.Y.2018-19) 2. Prima facie it was observed that MA is time barred. A specific query was made to the ld. Departmental Representative (DR) regarding receipt of Tribunal order by the Department. The ld. DR pointed that the order was received in the office of PCIT on 22.09.2022. The period for filing of MA for rectification under section 254(2) of the Act is within six months from end of the month in which the order is passed. The Hon’ble Bombay High Court in the case of Daryapur Shetkari Sahakari Ginning & Pressing Factory Vs. ACIT 123 taxmann.com 301 has held that the period of limitation under section 254(2) of the Act would commence from the date of knowledge of the decision. In the instant case, even if limitation is calculated from end of month in which the order came to the knowledge of Revenue, the limitation for filing of the MA under section 254(2) of the Act expires on 31.03.2023. The MA has been filed on 11.05.2023. The MA is time barred. The Hon’ble High Courts have repeatedly held that the Tribunal has no power to condone delay in filing of MA seeking rectification of mistake under section 254(2) of the Act. [Re:- Raja Malwinder Singh Vs. Union of India 278 ITR 568 (P&H), Karuturi Global Ltd. Vs. DCIT 116 taxmann.com 924 (Kar.)] 3. Ergo, the MA under section 254(2) of the Act is dismissed being barred by limitation. Order pronounced in the open court on Friday, the 04 th day of August, 2023. Sd/- Sd/- (AMARJIT SINGH) (VIKAS AWASTHY) लेखाकार सद᭭य/ACCOUNTANT MEMBER ᭠याियक सद᭭य/JUDICIAL MEMBER मुंबई/Mumbai, ᳰदनांक/Dated: 04/08/2023 SK, Sr.PS 3 एम.ए.सं. 364/मुं/2023 (िन.व.2018-19) M.A. NO.364/MUM/2023 (A.Y.2018-19) ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. आयकर आयुᲦ(अ)/ The CIT(A)- 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., मुबंई/DR, ITAT, Mumbai 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, Mumbai