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Issues involved: Rectification of order u/s 254(2) of the Income-tax Act, 1961 regarding conflicting views on a common issue in appeals for assessment years 2005-06 and 2006-07.
Summary: In the judgment by the Appellate Tribunal ITAT Hyderabad, the applicant-assessee sought rectification of the order related to appeals filed by the Revenue for the assessment years 2005-06 and 2006-07, citing mistakes apparent from the record. The Tribunal had granted relief to the assessee but set aside the matter to the file of the CIT(A) for the Revenue's appeals due to conflicting views on a common issue. The Tribunal's findings in the context of the assessee's appeals differed from those in the Revenue's appeals, leading to a mistake in the order. Consequently, the Tribunal rectified its order in favor of the Revenue, dismissing the Revenue's appeals and allowing the assessee's appeals. The Tribunal observed that the advances in question were of two types: trade advances and others. It was held that trade advances were outside the scope of certain provisions of the Income-tax Act, and therefore, the question of applicability of other provisions did not arise. The Tribunal relied on a previous decision to support its findings that certain payments did not attract TDS provisions. However, the Tribunal's findings in the context of the Revenue's appeal on the same issue were not in harmony with those in the assessee's appeals, leading to the rectification of the order to align with the Revenue's position. In conclusion, the Tribunal dismissed the Revenue's appeals while allowing the assessee's appeals, modifying its earlier order to rectify the conflicting views taken in the original order. The rectification was made to ensure consistency and accuracy in the judgment, ultimately favoring the Revenue's position on the common issue at hand.
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