2017 (12) TMI 1555 - AT - Income Tax

Rectification of mistake - claim of the assessee u/s. 23(l)(c) - Held that - We rectify the order and we direct the AO as under - The assessment is already set aside. We direct the A.O. also to look into the claim of the assessee u/s. 23(l)(c) as all the facts relevant are available before the A.O., he is directed to allow the relief u/s. 23(l)(c) in view of the Tribunal s decision in the case of Premsudha Exports (P) Ltd vs. ACIT (CC) Mumbai (2007 (5) TMI 348 - ITAT MUMBAI) after due verification.

Summary

Issues:
1. Additional ground raised by the assessee not adjudicated by the Tribunal.
2. Application of the decision of the Mumbai Tribunal in the case of Premsudha Exports (P) Ltd.
3. Rectification of the order by the Tribunal directing the Assessing Officer (AO) to allow relief under section 23(1)(c).

Analysis:
The Appellate Tribunal ITAT Mumbai addressed a Miscellaneous Application (M.A.) arising from ITA No.7294/Mum/2017. The learned Authorized Representative (AR) contended that there was a mistake apparent from the record as an additional ground raised by the assessee was not dealt with by the Tribunal, despite being reproduced in the order. The AR argued for proper direction to the Assessing Officer (AO) to adjudicate the issue, citing the relevance of the Mumbai Tribunal's decision in the case of Premsudha Exports (P) Ltd., which was also discussed during the original hearing.

Upon considering the contentions, the Tribunal observed that the additional ground raised by the assessee was indeed not adjudicated, despite being reproduced in the order. The Tribunal also noted the reference to the decision of the Mumbai Tribunal in the case of Premsudha Exports (P) Ltd. during the original hearing. Consequently, the Tribunal rectified the order and directed the AO to look into the claim of the assessee under section 23(1)(c), instructing the AO to allow the relief in line with the Tribunal's decision in the case of Premsudha Exports (P) Ltd. vs. ACIT (CC) Mumbai (2008) 110 ITD 158 after verification.

As a result, the M.A. filed by the assessee was allowed by the Tribunal, with the order pronounced in the open court on 26/12/2017. The Tribunal's decision emphasized the importance of addressing all raised grounds and ensuring proper application of relevant legal precedents for a just adjudication of tax matters.