Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 12 - HC - Income TaxWithdrawal of deduction under section 36(1)(viia) - Rectification of order by the Tribunal u/s 254 - Validity of Tribunal’s order – Held that:- The Application was filed by the assessee bringing to the notice of the Tribunal that the ground in respect of withdrawal of deduction u/s 36(1)(viia) of the IT Act of ₹ 405,17,20,944/- in relation to standard assets was raised in the Memo of Appeal - The Tribunal has merely followed its order for the preceding AY 2005-06 and upheld the order passed by the CIT, which is the complaint - what the Tribunal was called upon to consider in the Miscellaneous Application is that the Commissioner in AY 2005-06 has not decided the ground on merits but directed the AO to redo the assessment after giving sufficient opportunity of being heard to the Assessee - However, in the AY 2006-07, the CIT has decided the ground on merits - Hence, this part of the Tribunal's order is vitiated by an error of law apparent on the face of the record. If the Tribunal was required to devote so much time for assigning reasons in more than five paragraphs in a lengthy eight page order on the Miscellaneous Application so as to correct an obvious mistake by exercising powers u/s 254(2) of the IT Act, then, interest of justice would have been sub-served and better had the Tribunal revived the entire Appeal and not partially - the Tribunal does not find sufficient ground to uphold the objection raised by the assessee to the exercise of powers u/s 263 by the Commissioner - If there was a mistake and with regard to claim of deduction running into ₹ 405,17,20,944/-, then, the tribunal was justified in directing partial revival of the Appeal - the Tribunal should pass a fresh order not only in relation to the objection raised by the assessee to the exercise of powers u/s 263 of the IT Act, but on the merits of the claim as well - merely because such an opportunity is given does not mean that the Tribunal is obliged to uphold any of the grounds – thus, the matter is remitted back to the Tribunal – Decided in favour of assessee.
|