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2024 (5) TMI 595 - BOMBAY HIGH COURTRectification of mistake u/s 254 - Deduction u/s 80IB - Delay in filing of return of income (ITR) - ITAT rejected the application for rectification - HELD THAT:- Though we would agree with the view expressed by the ITAT that in the order dated 4th May 2022 there was no error, the ITAT failed to appreciate the spirit in which the order dated 23rd August 2022 was passed by the Hon’ble High Court. The High Court had very categorically observed that the authority should refrain from over analysis which leads to paralysis of justice. High Court in its order [2022 (12) TMI 1019 - BOMBAY HIGH COURT], condoned the delay by observing that the Income Tax Authority should consider the claim for deduction u/s 80IB (10) of the Act for AY 2011-12 made by Petitioner in accordance with law, as if there was no delay in filing the return - By an order pronounced [2023 (7) TMI 1405 - ITAT PUNE] the Tribunal rejected the MA by observing that the High Court states the Income Tax Authority and the ITAT is not an authority and there was no apparent mistake in its order as required within the four corners of Section 254 (2) of the Act. It is this order, which is impugned in this Petition HELD THAT:- Though we would agree with the view expressed by the ITAT that in the order [2020 (5) TMI 718 - ITAT PUNE] there was no error, the ITAT failed to appreciate the spirit in which the order dated 23rd August 2022 was passed by the Hon’ble High Court. The High Court had very categorically observed that the authority should refrain from over analysis which leads to paralysis of justice. Therefore, the delay having been condoned by the High Court, we hereby quash and set aside the assessment order and remand the matter to the stage of AO who shall pass fresh assessment order in accordance with law by considering the claim for deduction under Section 80IB (10) of the Act for AY 2011-12 made by Petitioner as if there was no delay in filing the return. In fact, what we understand from paragraph 22 of the order dated 23rd August 2022 of the High Court is that the matter was being remanded to the AO. Instead, Petitioner has approached the ITAT by filing an application under Section 254 (2) of the Act. AO shall pass fresh assessment order on or before 31st August 2024 and before he passes any order, shall give a personal hearing to Petitioner, notice whereof shall be communicated atleast five working days in advance. The assessment order shall be a reasoned order dealing with all submissions of Petitioner.
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