ITO Corporate Ward 6(3), CHENNAI V. Soundararaja Mills Ltd., Dindigul

MA 8/CHNY/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3410 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 3 month(s) 5 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-04-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 17-01-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R ANITA
• Assessee Lawyers: R KUMAR
• Keywords: Depreciation; Unabsorbed depreciation; TDS
• Section: 14A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . , ! . , ! ' BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER MISC. PETITION NO.8/CHNY/2020 [IN ITA NO.1255/CHNY/2018] ( / ASSESSMENT YEAR: 2014-15) THE INCOME TAX OFFICER, CORPORATE WARD-6(3) CHENNAI. VS M/S.SOUNDARARAJA MILLSLTD. NO.1, SOUNDARARAJA BUILDINGS GTN SALAI, NGO COLONY DINDIGUL624 005. PAN: AAACS 8799R ( /PETITIONER) ( /RESPONDENT) / PETITIONER BY : MS. R. ANITA, JCIT /RESPONDENT BY : MR. R. KUMAR, ADVOCATE /DATE OF HEARING : 23.04.2021 /DATE OF PRONOUNCEMENT : 23. 04.2021 / O R D E R PER G. MANJUNATHA, AM: THE REVENUE HAS FILED PRESENT MISCELLANEOUS PETITI ON AGAINST ORDER OF THE TRIBUNAL IN ITA NO.1255/CHNY/ 2018 DATED 19.08.2019 FOR THE ASSESSMENT YEAR 2014-15. 2. THE REVENUE HAS NARRATED FACTS AND MISTAKES STA TED TO BE APPARENT ON RECORD FROM THE ORDER OF THE TRIBU NAL AND RELEVANT CONTENTS OF THE MISCELLANEOUS PETITION FIL ED BY THE REVENUE ARE REPRODUCED AS UNDER:- 1. IN THIS CASE, THE ASSESSEE HAS FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2014-15 ON 30.09.2014 DECLARING NIL INCOME AFTER SETTING OFF THE BROUGHT FORWARD LOSSES . THE ASSESSMENT WAS COMPLETED ON 20.12.2016 ASSESSING TH E 2 M.P NO.8 /CHNY/2020 INCOME AT RS. 3,94,97,304/- AFTER SET OFF OF BROUGH T FORWARDED LOSSES/UNABSORBED DEPRECIATION. BEING AGGRIEVED WIT H THE ASSESSMENT ORDER, THE ASSESSEE HAS FILED AN APPEAL BEFORE THE CIT(A). THE HONBLE CIT(A) HAS ALLOWED THE APPEAL O F THE ASSESSEE. AGAINST THE DECISION OF CIT(A), THE DEPAR TMENT HAS FILED AN APPEAL BEFORE THE ITAT FOR THE FOLLOWING I SSUES: 2. THE LD CIT(A) ERRED IN DIRECTING THE AO TO RESTR ICT THE DISALLOWANCE UNDER SECTION 14A TO THE EXTENT OF DIV IDEND EARNED DURING THE YEAR. (REFERENCE: GROUND NO. 2) 3. THE LD CIT(A) ERRED IN DIRECTING AO TO DELETE TH E DISALLOWANCE OF BAD DEBT WRITTEN OFF TOWARDS CARBON CREDIT FOR RS. 6,25,00,000/-. (REFERENCE GROUND NO.3) 4. THE LD CIT(A) ERRED IN DIRECTING AO TO DELETE TH E ADDITION OF RS.4,25,987/- AS INTEREST RECEIPT U/S 26AS PROVIDE THE CREDIT FOR TDS FOR NEXT ASSESSMENT YEAR 2015-16. (GROUND NO. 4 , 4.1 & 4.2) 5. THE HONBLE ITAT B BENCH HAS GIVEN THE DECISIO N ON 19.08.2019 VIDE ITA NO. 1255/CHNY/2018 ADJUDICATING THE FIRST 2 ISSUES MENTIONED AT PARAGRAPHS 2 AND 3 ABOVE AT P ARAGRAPHS 5 AND 5.1 OF THE ORDER RESPECTIVELY. HOWEVER, THE T HIRD ISSUE HAS NOT BEEN ADJUDICATED BY THE HONBLE TRIBUNAL. THUS, IT IS A MISTAKE APPARENT FROM RECORD AND THEREFORE REQUIRES RECTIFICATION. 6. HENCE, THIS MISCELLANEOUS PETITION IS FILED WITH THE REQUEST THAT THE HONBLE TRIBUNAL MAY TAKE UP THIS MISCELLA NEOUS PETITION FOR CONSIDERATION AND ADJUDICATE THE 3RD I SSUE IN THE GROUNDS OF APPEAL AT PARAGRAPH 4.2 OF THE GROUNDS O F APPEAL. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED MISCELLANEOUS PETITION FILED BY THE REVENUE IN LIGH T OF ORDER OF THE TRIBUNAL IN ITA NO. 1255/CHNY/2018 DATED 19.08 .2019 AND FIND THAT THE TRIBUNAL BY INADVERTENT ERROR HAS OM ITTED TO 3 M.P NO.8 /CHNY/2020 CONSIDER GROUND NO.4 OF REVENUE APPEAL CHALLENGING FINDINGS OF LEARNED CIT(A) IN RESPECT OF ADDITION OF RS.4,25,9 87/- TOWARDS INTEREST RECEIPTS AS PER FORM NO.26AS FOR RELEVANT ASSESSMENT YEAR. THEREFORE, WE ARE OF THE CONSIDERED VIEW THAT SAID OMISSION CONSTITUTES A MISTAKE APPARENT ON RECORD, WHICH CAN BE RECTIFIED U/S.254(2) OF THE ACT. HENCE, ORDER O F THE TRIBUNAL IN ITA NO.1255/CHNY/2018 DATED 19.08.2019 IS RECAL LED QUA TO ADJUDICATE GROUND NO.4 OF REVENUE APPEAL. THE REGISTRY IS DIRECTED TO POST APPEAL OF THE REVENUE FOR HEARING IN DUE COURSE. 4. IN THE RESULT, MISCELLANEOUS APPLICATION FILED B Y THE REVENUE IS ALLOWED IN TERMS OF OUR OBSERVATIONS ME NTIONED HEREIN ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD APRIL, 2021 SD/- SD/- ( . ) ( . ) (DUVVURU RL REDDY) ( G.MANJUNATHA ) ! / JUDICIAL MEMBER ! / ACCOUNTANT MEMBER /CHENNAI, % /DATED 23 RD APRIL, 2021 DS )* -* /COPY TO: 1. APPELLANT 2. RESPONDENT 3. . () /CIT(A) 4. . /CIT 5. * 3 /DR 6. /GF .