M/s Optum Health & Technology (India) Private Limited, Bangalore V. ITO, Bangalore

MA 62/BANG/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6129 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 3 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 28-09-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 30-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 254(2); 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI B R BASKARAN , ACCOUNTANT MEMBER MP NO.62/BANG/2019 [IN ITA NO.1068/BANG/2016 ] ASSESSMENT YEAR : 2012 - 13 M/S. OPTUM HEALTH & TECHNOLOGY (INDIA) PVT. LTD., # 570 & 571, EAPENS TIMBER, 2ND FLOOR, SARJAPURA ROAD, 3RD BLOCK, KORAMANGALA, BANGALORE 560 034. PAN: AADCP 6027A VS. THE INCOME TAX OFFICER, WARD 5(1)(2), BANGALORE. APPL IC ANT RESPONDENT APPL IC ANT BY : SHRI ADDL. CIT(DR)(ITAT), BENGALURU. R ESPONDENT BY : SHRI PRIYADARSHI MISHRA, JT.CIT(DR)(ITAT), BENGALUR U. DATE OF HEARING : 11 .0 9 .2020 DATE OF PRONOUNCEMENT : 28 .0 9 .2020 O R D E R PER N.V. VASUDEVAN, VICE PRESIDENT THIS MISCELLANEOUS PETITION U/S. 254(2) OF THE INC OME-TAX ACT, 1961 [THE ACT] IS FILED BY THE ASSESSEE PRAYING FOR RECT IFICATION OF CERTAIN APPARENT ERRORS IN THE ORDER OF TRIBUNAL DATED 08.02.2016 IN ITA NO.1068/BANG/2016. 2. THE ISSUE THAT AROSE FOR CONSIDERATION IN THE A BOVE APPEAL BY THE ASSESSEE WAS AS TO, WHETHER THE REVENUE AUTHORITIES WERE JUSTIFIED IN ADDING A SUM OF RS.1,50,84,240 TO THE TOTAL INCOME OF ASSESSEE. IT WAS THE PLEA OF ASSESSEE THAT THE SUM ADDED BY THE AO O N THE BASIS OF MERCANTILE SYSTEM OF ACCOUNTING WAS OFFERED BY THE ASSESSEE TO TAX IN A LATER ASSESSMENT YEAR AS INCOME AND THEREFORE THE A DDITION MADE WILL MP 62/BANG/2019 PAGE 2 OF 3 AMOUNT TO TAXATION OF THE SAME INCOME TWICE. THIS ASPECT WAS CONSIDERED BY THE TRIBUNAL IN PARA 14 OF THE ORDER OF TRIBUNAL WITH THE FOLLOWING OBSERVATIONS:- 14. WE HOWEVER WISH TO MAKE IT CLEAR THAT THE INCO ME RECOGNITION OF WHICH WAS POSTPONED BY THE ASSESSEE BY FOLLOWING AS-9 CANNOT BE REGARDED AS INCOME IN THE YEAR IN WHICH IT IS OFFER ED TO TAX BY THE ASSESSEE, BECAUSE THE LAW IS WELL SETTLED THAT SAME INCOME CANNOT BE TAXED TWICE. THE BURDEN WILL HOWEVER BE ON THE ASSE SSEE TO SHOW AS TO HOW THE INCOME OFFERED IN A LATER ASSESSMENT YEAR W AS INCOME WHICH WAS NOT RECOGNISED IN EARLIER ASSESSMENT YEAR BY REASON OF APPLICATION OF AS-9. SUBJECT TO THESE OBSERVATIONS, WE FIND NO MER IT IN THIS APPEAL BY THE ASSESSEE AND DISMISS THE SAME. 3. IN THIS MISCELLANEOUS PETITION, THOUGH THE ASSES SEE HAS RAISED SEVERAL ISSUES, BUT AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT WHILE GIVING EFFECT TO THE ORDER OF TRIBUNAL BY THE AO, THE ASSESSEES CLAIM THAT PART OF INCOME WHICH WAS NOT ACCOUNTED ON THE BASIS OF ACCRUAL SYSTEM OF ACCOUNTING HAD BEEN OFFERED TO TAX IN THE VERY SAME ASSESSMENT YEAR I.E., AY 2012-13. SINCE IN THE ORD ER OF TRIBUNAL REFERENCE IS MADE ONLY TO A LATER ASSESSMENT YEAR, THE AO HAD NOT ACCEPTED THE STAND OF ASSESSEE. THE LD. COUNSEL FOR THE ASSESSE E ACCORDINGLY PRAYED FOR SUITABLE MODIFICATION IN THE ORDER OF TRIBUNAL. 4. THE LD. DR RELIED ON THE ORDER OF TRIBUNAL AND S UBMITTED THAT THERE IS NO MISTAKE APPARENT ON THE FACE OF RECORD. 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT THE WORDS EITHER IN THIS YEAR OR SHOULD BE ADDED TO LINE 6 OF PARA 14 OF THE ORDER OF TRIBUNAL, AFTER THE WORDS HOW THE INCOME OFFERED SO THAT THE 6 TH LINE OF PARA 14 READS AS UNDER:- HOW THE INCOME OFFERED EITHER IN THIS YEAR OR IN A LATER ASSESSMENT YEAR WAS INCOME WHICH WAS WE HOLD AND ORDER ACCORDINGLY. MP 62/BANG/2019 PAGE 3 OF 3 6. WE ARE OF THE VIEW THAT THE ABSENCE OF INSERTION OF THE AFORESAID WORDS IN THE ORDER OF TRIBUNAL WOULD GIVE RISE TO A N INTERPRETATION, WHICH MAY NOT BE IN TUNE WITH THE INTENT OF PARA 14, WHIC H IS THAT, THE SAME INCOME CANNOT BE TAXED TWICE. 7. ACCORDINGLY, THE MISCELLANEOUS PETITION FILED BY THE ASSESSEE IS ALLOWED TO THE EXTENT INDICATED ABOVE. PRONOUNCED IN THE OPEN COURT ON THIS 28 TH DAY OF SEPTEMBER, 2020. SD/- SD/- ( B R BASKARAN ) ( N V VASUDEVAN ) ACCOUNTANT MEMBER VICE PRESIDENT BANGALORE, DATED, THE 28 TH SEPTEMBER, 2020. / DESAI S MURTHY / COPY TO: 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.