Shri Anjanevalu Jayapal, Chennai V. ITO, Non Corporate Ward-10(2), Chennai

MA 43/CHNY/2023

AI Insights

The case involves Miscellaneous Applications filed by Shri Anjaneyalu Jayapal against the order of the Income Tax Appellate Tribunal dated 18.01.2023, concerning the assessment years 2013-14 & 2014-15. The applications were filed under section 254(2) of the Income-tax Act, 1961, claiming that there were apparent mistakes in the Tribunal's earlier order that needed rectification. The Tribunal, however, found that the issues raised did not constitute mistakes apparent from the record but were requests for a review of the earlier decision, which is not permissible under section 254(2). The Tribunal referenced several Supreme Court decisions to emphasize that its powers under section 254(2) are limited to correcting mistakes apparent from the record and do not extend to re-evaluating the merits of the case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135001 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 08-08-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 27-07-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 31-01-2023
• Other Referred Cases: Commissioner of Income-tax (IT-4), Mumbai v Reliance Telecom Ltd [2021] 133 taxmann.com 41 (SC), Dinosaur Steels LTD V JCIT 288 ITR 476 (Mad), Asstt. CIT v. Saurashtra Kutch Stock Exchange Ltd. [2008] 173 Taxman 322, CIT v. Honda Siel Power Products Ltd v. CIT (2007) 295 ITR 466 (SC)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 254(2); 48

Judgement Text

आयकर अपीलीय अिधकरण, ‘बी’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ᮰ी महावीर ᳲसह, उपा᭟यᭃ एवं एवं ᮰ी मंजुनाथ. जी, लेखा सद᭭य के समᭃ BEFORE SHRI MAHAVIR SINGH, HON’BLE VICE PRESIDENT AND SHRI MANJUNATHA. G, HON’BLE ACCOUNTANT MEMBER Misc. Application Nos. 42 & 43/Chny/2023 [In ITA Nos. 48 & 49/Chny/2018] (िनधाŊरणवषŊ / Assessment Years: 2013-14 & 2014-15) Shri. Anjaneyalu Jayapal, Old No. 2/56, New No. 3/51, T.K. Pattu Gandhi Street, Redhills, Chennai – 600 052. [PAN: AHFPJ-3481-Q] v. The Income Tax Officer, Non-Corporate Ward -10(2), Chennai – 600 034. (ᮧाथᭅक /Petitioner) (ᮧ᭜यथᱮ/Respondent) ᮧाथᭅक कᳱ ओरसे/ Petitioner by : Shri. Murugappa Boopaty, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri. AR V Sreenivasan, Addl. CIT सुनवाई कᳱ तारीख/Date of Hearing : 28.07.2023 घोषणा कᳱ तारीख/Date of Pronouncement : 09.08.2023 आदेश /O R D E R PER MANJUNATHA. G, ACCOUNTANT MEMBER: The present Miscellaneous Applications filed by the assessee u/s. 254(2) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) is directed against order of the Tribunal in ITA Nos. 48 & 49/Chny/2018, dated 18.01.2023 for assessment years 2013-14 & 2014-15. :-2-: MA. Nos: 42 & 43/Chny/2023 2. The appellant has narrated facts of his case and mistakes stated to be apparent on record from the order of the tribunal dated 18.01.2023 and relevant contents of Miscellaneous Application filed by the assessee in MA No. 42/Chny/2023 for assessment year 2013-14 are reproduced as under: “1. The Appellant wishes to bring to the notice of this Hon'ble Tribunal certain error apparent on record that has crept into the findings/ directions of the order of this Hon'ble Tribunal dated 18.01.2023 in the above matter which is apparent on record and which requires rectification of such error, as envisaged u/s 254(2) of the I.T. Act. 2. The appellant most respectfully submits that the above prayer for rectification is made within six months from the end of the month in which the order was passed as required statutorily 3. The appellant is grateful to this Hon'ble Tribunal for considering the assessee's request for rectification of the order dt. 21.11.2019 in response to the petition u/s 254(2) of the IT Act filed on 24.02.2020 and passing the order dt. 11.11.2022. 4. However this Hon 'ble Tribunal was pleased to direct the registry to fix these appeals for hearing in due course with an intimation to both the parties. Accordingly the case was posted for hearing and the appeal was allowed for statistical purpose, with a further direction that the issue needs to go back to the file of the AO and this Hon 'ble Tribunal set aside the issue to the file of the AO and directed the AO to re-verify the claim of the assessee in the light of certificate issued by the Manager, Karnataka Bank Ltd., Anna Nagar West Branch and also claim of the assessee that cash deposits found in Savings Bank Account with M/s. Karnataka Bank Ltd., is considered by his son Mr. J. Sriram and his proprietary concern M/ s. Sri Laksmi Thanga Maligai. 5. It is humbly submitted that while considering the application under section 254(2) of the Act, the Appellate Tribunal is not required to re-visit its earlier :-3-: MA. Nos: 42 & 43/Chny/2023 order and to go into detail on merits. The powers under section 254(2) of the IT Act are only to rectify/ correct any mistake apparent from the record, as decided by the Hon'ble Supreme Court. 6. It is brought to the kind notice of this Hon'ble Tribunal that the Hon'ble Supreme Court Of India held in Commissioner of Income-tax (IT-4), Mumbai v Reliance Telecom Ltd [2021] 133 taxmann.com 41 (SC) (in para 3.2) that "While allowing the application under section 254(2) of the Act and recalling its earlier order dated 6-9- 2013, it appears that the ITAT has re-heard the entire appeal on merits as if the ITAT was deciding the appeal against the order passed by the C.I. T. In exercise of powers under section 254(2) of the Act, the Appellate Tribunal may amend any order passed by it under sub-section (1/ of section 254 of the Act with a view to rectifying any mistake apparent from the record only. Therefore, the powers under section 254(2) of the Act are akin to Order XL VII Rule 1 CPC. While considering the application under section 254(2) of the Act, the Appellate Tribunal is not required to re-visit its earlier order and to o into detail on merits. The powers under section 254(2) of the Act are only to rectify/ correct any mistake apparent from the record. Further it was held that the order passed by the ITAT recalling its earlier order .... which has been passed in exercise of powers under section 254(2) of the Act is beyond the scope and ambit of the powers of the Appellate Tribunal conferred under section 254(2) of the Act. Therefore, the order passed by the ITAT recalling its earlier order ... ... is unsustainable....” 7. It was observed therein that the ITAT had become functus-official delivering its original order and that if it had to relook/revisit the order, it must be for limited purpose as permitted by section254(2) of the Act. The powers under section 254(2) of the Act are only to correct and/or rectify the mistake apparent from the record and not beyond that. "Even {e observations that the merits might have been decided erroneously and the ITAT had jurisdiction and within its power it may pass an order recalling its earlier order which is an erroneous order. cannot be accepted. As observed hereinabove, if the order passed by the ITAT was errone0lS on merits, in that case, the :-4-: MA. Nos: 42 & 43/Chny/2023 remedy available ... was to prefer an appeal before the High Court." 1t is humbly submitted that the Hon'ble Supreme Court held that non-consideration of a decision of a Hi h court the Supreme Court can be said to be a 'mistake a apparent from the record' which can be rectified under section 254(2)in the following cases: 1. Dinosaur Steels LTD V JCIT 288 ITR 476 (Mad) 2. Asstt. CIT v. Saurashtra Kutch Stock Exchange Ltd. [2008] 173 Taxman 322. 3. CIT v. Honda Siel Power Products Ltd v. CIT (2007) 295 ITR 466 (SC) ... 4 9. It is most humbly submitted that the appellant became aware of the above decisions after the hearing and it attempted to bring it to the notice of this Hon'ble Tribunal by submitting a written submission. But by the time the appellant approached the Registry of this Hon'ble Tribunal, to file the same on 18.1.2013, this Hon'ble Tribunal had already pronounced the order and the inability to file earlier is most sincerely regretted and the delay may kindly be condoned. 10. It is most humbly submitted that this Hon'ble Tribunal may be pleased to consider that the above judgments of the Hon'ble Supreme Court are squarely applicable to the facts of the case of the Appellant. Consequently, the above error arising out of the non- consideration of the decision of the Hon'ble Supreme Court which has crept into the said order of this Hon 'ble Tribunal, which is a mistake apparent from the record, may kindly be rectified and render justice to the appellant by allowing the original appeal before this Hon'ble Tribunal, for all practical purposes also. 3. We have heard both the parties and considered relevant contents of Miscellaneous Application filed by the assessee against order of the Tribunal in ITA Nos. 48 & 49/Chny/2018, dated 18.01.2023. We have carefully considered the pleadings :-5-: MA. Nos: 42 & 43/Chny/2023 of the assessee in their application in light of findings of the Tribunal in ITA Nos. 48 & 49/Chny/2018, dated 18.01.2023 , and we find that the assessee could not make out a case of prima facie, mistake apparent on record from the order of the Tribunal which can be rectified u/s. 254(2) of the Act. But what is sought by way of present Miscellaneous Application is to review the decision rendered by the Tribunal in the given facts and circumstances of the case. Therefore, we are of the considered view that the Miscellaneous Application filed by the appellant for assessment year 2013-14 & 2014-15 are devoid of merits and thus, dismissed. 4. In the result, Miscellaneous Applications filed by the assessee for both the assessment years are dismissed. Order pronounced in the court on 09 th August, 2023 at Chennai. Sd/- (महावीर ᳲसह ) (MAHAVIR SINGH) उपा᭟यᭃ /Vice President Sd/- (मंजुनाथ. जी) (MANJUNATHA. G) लेखासद᭭य/Accountant Member चे᳖ई/Chennai, ᳰदनांक/Dated: 09 th August, 2023 JPV आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ/CIT 4. िवभागीय ᮧितिनिध/DR 5. गाडᭅ फाईल/GF