2017 (3) TMI 1782 - AT - Income Tax

Rectification of mistake - deduction u/s 80IA on the basis of sale price of electricity - H ELD THAT - Co-ordinate Bench vide its order for Asst. Year 2005-06 to 2007-08 in assessee s own case allowed assessee s claim of deduction u/s 80IA of the Act by taking the sale price at 4.55 per unit. However in para 24 of the Tribunal s order dated 2016 (1) TMI 125 - ITAT AHMEDABAD it was wrongly mentioned that ground of assessee is partly allowed and no interference is called for in the order of ld. Commissioner of Income Tax(A). We are of the opinion that in these peculiar facts an apparent mistake has cropped up in the Tribunal s order dated 19.11.15 giving rise to a contradictory view occurring in para 23 and para 24 of the order. We thus recall our finding mentioned in para 24 of the order dated 19.11.15 and replace it with the following paragraph - Respectfully following the ratio of decision taken by the Co-ordinate Bench in assessee s own case we set aside the order of ld. Commissioner of Income Tax(A) and allow the ground of assessee. Miscellaneous application filed by the assessee is allowed

Summary

Issues:
- Rectification of apparent mistake in Tribunal's order regarding deduction u/s 80IA for the sale price of electricity.

Analysis:
1. The assessee filed a Miscellaneous Application under section 254(2) of the Income Tax Act, 1961, pointing out an error in the Tribunal's order dated 19-11-2015 regarding the deduction u/s 80IA for the sale price of electricity.

2. The Tribunal had initially mentioned in Para 24 of the order that the ground of the assessee was partly allowed, but the preceding Para 23 clearly showed that the Co-ordinate Bench had allowed a similar claim in the assessee's own case for Asst. Years 2005-06 to 2007-08 at a sale price of ?4.55 per unit.

3. The Authorized Representative argued that the Tribunal had inadvertently stated "partly allowed" in Para 24, whereas the correct decision should have been to allow the ground of the assessee based on the Co-ordinate Bench's decision in the earlier case.

4. After hearing both parties, the Tribunal acknowledged the mistake in the order and noted that the assessee was eligible for claiming deduction u/s 80IA at the sale price of ?4.55 per unit, as per the Co-ordinate Bench's decision in the previous case.

5. Consequently, the Tribunal rectified the error and replaced Para 24 of the order with a clear statement that the ground of the assessee is allowed based on the Co-ordinate Bench's decision, setting aside the Commissioner's order.

6. The Tribunal concluded by allowing the Miscellaneous Application filed by the assessee in light of the apparent mistake in the original order, providing clarity on the correct application of the deduction u/s 80IA for the sale price of electricity.

This detailed analysis of the judgment highlights the procedural aspect of rectifying errors in the Tribunal's order and ensuring the correct application of legal provisions based on precedent and factual circumstances.