2018 (8) TMI 1757 - AT - Income Tax

Rectification of mistake - TDS u/s 194I - demurrage/detention charges paid non-resident shipping companies which are assessed u/s.172 - assessee submitted that non-adjudication of grounds would brand order of the Tribunal as suffering from apparent error - Held that - We are satisfied that inadvertent mistake has been crept in the order of the ITAT, where it failed to adjudicate three grounds of appeal. Therefore, order of the Tribunal is recalled for limited purpose. This appeal is restored to its original number for adjudicating the three grounds.

Summary

Issues: Failure to adjudicate certain grounds of appeal by the Tribunal

In this case, two Miscellaneous Applications (MAs) were filed by the assessee seeking rectification of the Tribunal's order passed in ITA No.219 and 220/R/2004. During the hearing, the counsel for the assessee decided not to pursue MA no.10/Ahd/2017, leading to its dismissal. However, MA No.11/Ahd/017 raised concerns about the Tribunal's failure to address three specific grounds of appeal related to the deduction of tax at source under section 194I on demurrage/detention charges paid to non-resident shipping companies assessed under section 172 of the Act. The counsel argued that the non-adjudication of these grounds would render the Tribunal's order flawed. The Departmental Representative (DR) did not contest this argument. Consequently, the Tribunal acknowledged the oversight and recalled its order in ITA No.220/Ahd/2014 to address the three grounds that were previously left unadjudicated. The appeal was reinstated for the purpose of deliberating on these grounds, and the Registry was instructed to schedule the appeal for further consideration. Ultimately, the Miscellaneous Application of the assessee was allowed, and the order was pronounced in court on 3rd August 2081 in Ahmedabad.