2019 (12) TMI 260 - AT - Income Tax

Rectification of mistake/Review of order - interest allowance under section 24(b) from 31.01.2008 - assessee is now seeking review of the order by changing its stand - HELD THAT - While making submission on 30.04.2019, the ld. AR of the assessee claimed that assessee made payment of ₹ 5.28 crore to Vedant Properties Pvt. Ltd. on 14.02.2008, which is duly recorded in para-10 of the order, which is based on the submission of ld. AR of the assessee. After accepting the submission of assessee, we have allowed the interest allowance under section 24(b) from 14.02.2008. The assessee is now seeking the review of the order, which is beyond the scope of section 254(2) of the Act - there are no merit in the application filed by the assessee and the same is dismissed. Rectification of mistake - failure to disclose the date of acquisition of different share of Dhanwatay House in earlier Assessment Years - absence of documentary evidence for capitalization of interest for A.Y. 2010-11 2011-12 - HELD THAT - Perusal of order dated 31.05.2019 reveals that the ld. AR of the assessee while making his submission stated that no interest was capitalized in the A.Y. 2009-10 2010-11 as initially the property was acquired from interest free fund. It was pointed out that point in dispute between assessee and Assessing Officer was with regard to amount of interest capitalized pertaining to the property sold during the year - The material/submission of Paper Book, filed along with the Miscellaneous Application is already on record of appeal folder. The assessee is now seeking the review of order which is beyond the scope of the application under section 254(2), hence, the application filed by assessee is devoid of merit and is dismissed. Application dismissed.

Summary

Issues:
1. Rectification of alleged mistake in the order dated 31.05.2019 for Assessment Year 2008-09.
2. Rectification of alleged mistake in the order dated 31.05.2019 for Assessment Year 2012-13.

Issue 1: Rectification of alleged mistake in the order dated 31.05.2019 for Assessment Year 2008-09:

The assessee filed two Miscellaneous Applications seeking rectification of an alleged mistake in the order passed for Assessment Year 2008-09. The contention was that the date of payment mentioned in the order was incorrect, stating it as 14.02.2008 instead of the actual date, 31.01.2008. The assessee argued that the necessary payment for property acquisition was made on 31.01.2008, entitling them to interest allowance under section 24(b) from that date. However, the revenue's representative argued that there was no apparent mistake in the order. The Tribunal noted that the order was based on the submission of the assessee claiming payment on 14.02.2008, and changing this stance post-order was beyond the scope of rectification under section 254(2) of the Act. After considering submissions from both sides and reviewing the case record, the Tribunal dismissed the application, finding no merit in the rectification request.

Issue 2: Rectification of alleged mistake in the order dated 31.05.2019 for Assessment Year 2012-13:

In the Miscellaneous Application filed for Assessment Year 2012-13, the assessee contended that their appeal was dismissed due to failure to disclose the acquisition date of a share of property in earlier assessment years and lack of documentary evidence for interest capitalization in specific years. The assessee claimed to have submitted documentary evidence on 04.01.2019, filed in Tapal on 07.01.2019. During the hearing, the assessee's representative did not make any submissions, leading to no counter from the revenue's representative. The Tribunal observed that the order dated 31.05.2019 was based on the contention of the assessee regarding interest capitalization and material available on record. The Tribunal found that the submission and material from the Paper Book were already part of the appeal record, and seeking a review of the order was beyond the scope of rectification under section 254(2). Consequently, the Tribunal dismissed the application for Assessment Year 2012-13, as it lacked merit.

In conclusion, both Miscellaneous Applications filed by the assessee seeking rectification of alleged mistakes in the orders dated 31.05.2019 for Assessment Years 2008-09 and 2012-13 were dismissed by the Tribunal after considering the arguments presented by both parties and reviewing the case records.