2018 (4) TMI 1550 - AT - Income Tax

Rectification of mistake - Held that - Last line of the paragraph 5 at page 6 of the order for the AY. 2008-09 2017 (6) TMI 448 - ITAT MUMBAI , should be read as under Following the order of the Tribunal for the AY. 2005-06 (2015 (6) TMI 423 - ITAT MUMBAI )we hold that management fee does not fall with the purview of section 44C of the Act. First GOA is decided in favour of the assessee . Paragraph 9 of the order(2017 (6) TMI 448 - ITAT MUMBAI, AY. 2009-10)should be read as under Following our order for the earlier AY., we decide first effective ground of appeal in favour of the assessee - MA allowed.

Summary

Issues:
1. Rectification of mistakes in the Tribunal's order regarding management fee.
2. Interpretation of section 44C of the Act.
3. Decision on the appeals for AY 2008-09 and 2009-10.

Analysis:
The judgment by the Appellate Tribunal ITAT Mumbai dealt with the rectification of mistakes in the Tribunal's order concerning the management fee issue. The assessee had pointed out discrepancies in the previous order and requested rectification under section 254(2) of the Act. The Tribunal acknowledged the mistake and directed the necessary corrections to be made in the order for AY 2008-09, aligning it with the decision from a previous year's order. The Tribunal clarified that management fee does not fall within the purview of section 44C of the Act, thereby deciding in favor of the assessee on this issue.

Furthermore, the Tribunal addressed the appeals for AY 2008-09 and 2009-10. In the order for AY 2009-10, the Tribunal directed that a specific paragraph should be read in favor of the assessee based on the decision from an earlier assessment year. Consequently, the Tribunal allowed the assessee's appeals for both assessment years, indicating a favorable outcome for the assessee in the matter of management fee. The judgment was pronounced in open court on 6th April 2018, concluding the resolution of the issues raised by the assessee regarding the management fee and the interpretation of relevant sections of the Act.