Bestride Consultancy Pvt Ltd , Bangalore V. The Income Tax Officer, Ward-1(1)(3), Bangalore

MA 72/BANG/2023

AI Insights

The case involves Bestride Consultancy Pvt. Ltd., the appellant, contesting an order from the Income Tax Officer, Ward 1(1)(3), Bangalore, regarding the assessment year 2015-16. The core issue was related to the manpower cost disallowance. Initially, the Tribunal had orally agreed to remit this issue back to the AO for fresh consideration during the appeal hearing. However, the written order mistakenly restricted the disallowance to 50% of the total expenditure instead of remitting it back. The assessee filed a miscellaneous application for rectification of this error, which was supported by the respondent and accepted by the Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124977 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 06-07-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 03-11-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER MP No.72/Bang/2023 [in ITA No.781/Bang/2019] Assessment year : 2015-16 Bestride Consultancy Pvt. Ltd., Level 12, UB Towers, UB City, 24, Vittal Mallya Road, Bengaluru – 560 001. PAN: AAECB 1062G Vs. The Income Tax Officer, Ward 1(1)(3) , Bangalore. APPLICANT RESPONDENT Appellant by : Shri K.R. Pradeep, Advocate Respondent by : Smt. Nishi Padma, Addl.CIT(DR)(ITAT), Bengaluru. Date of hearing : 07.07.2023 Date of Pronouncement : 11.07.2023 O R D E R Per Laxmi Prasad Sahu, Accountant Member This miscellaneous application has been filed by the assessee for rectification of the consolidated order of the Tribunal dated 20.07.2022 in ITA No.781/Bang/2019 for AY 2015-16. 2. The ld. AR submitted that during the course of hearing of the appeal the Tribunal on the issue of manpower cost raised in ground No.4 orally observed that this issue would be remitted back to the file MP No.72/Bang/2023 Page 2 of 3 of AO for fresh consideration to which both the parties agreed. However, in para 17 of the said order the Tribunal has restricted the disallowance to the extent of 50% of the total expenditure. The relevant portion at the end of para 17 is reproduced below:- “17. ********** ************ Considering the totality of the facts and circumstances of the case, we restrict to the disallowance from the total expenditure to the extent of 50%. Accordingly, the assessee gets benefit of Rs.44,09,616/-.” 3. In view of the above, the ld AR submitted that there is a mistake apparent on the record and requested for rectification of the order of the Tribunal. 4. The ld. DR had no objection to the submissions of the ld. AR. 5. After hearing both the parties, we notice from our log book that it is noted that this issue has to be sent back to the file of AO and the submission of the ld. AR in this regard is accepted. Therefore, there is a mistake apparent on the record which needs to be rectified. Accordingly, the end portion of para 17 which is extracted above is modified and substituted to read as under:- “17. ********** ************ Considering the totality of the facts and circumstances of the case, we remit this issue to the file of AO for denovo consideration and decision as per law. The AO is directed to provided reasonable opportunity of being heard to the assessee and the assessee is directed to file necessary documents to substantiate its case and to avoid unnecessary adjournment for early disposal of the case.” MP No.72/Bang/2023 Page 3 of 3 6. Except for the above modification, the rest of the order dated 20.07.2022 in the appeals remain unchanged. 7. In the result, the miscellaneous petition by the assessee is allowed. Pronounced in the open court on this 11 th day of July, 2023. Sd/- Sd/- ( BEENA PILLAI ) (LAXMI PRASAD SAHU ) JUDICIAL MEMBER ACCOUNTANT MEMBER Bangalore, Dated, the 11 th July, 2023. / Desai S Murthy / Copy to: 1. Applicant 2. Respondent 3. CIT 4. CIT(A) 5. DR, ITAT, Bangalore. By order Assistant Registrar ITAT, Bangalore.