2018 (6) TMI 1691 - AT - Income Tax

Rectification of mistake u/s 254 - Fair Market Value (FMV) and its computation - Disallowance u/s 14A - HELD THAT - No separate Ground was raised about the 14A disallowance under a separate head. It is found that Ground No.1 (c) remained unadjudicated as pointed out by the assessee. Therefore, we are recalling our order in that regard. As far as Grounds No.1(a) and 1(b) are considered we would like to observe that case laws relied upon by the assessee were not considered while passing the order 2016 (4) TMI 709 - ITAT MUMBAI We recall our order in that regard also. The registry is directed to fix the case before regular Bench so that appeal filed by the assessee can be heard afresh. As a result, Miscellaneous Application filed by the assessee is allowed.

Summary

Issues:
Rectification of mistakes in the Tribunal's order, consideration of case laws, unadjudicated Ground No.1(c) regarding 14A disallowance.

Analysis:
The judgment pertains to an application made by the assessee seeking rectification of certain mistakes in the Tribunal's order dated 13/04/2016. The assessee highlighted that Ground No.1(c) dealing with 14A disallowance remained unadjudicated and that specific case laws were not considered while deciding Ground No.1(a) and 1(b). During the hearing, the assessee reiterated the arguments from the application, emphasizing the 14A disallowance issue. The Departmental Representative (DR) left the decision on this issue to the Bench's discretion.

Upon hearing the rival submissions and examining the material, the Tribunal noted that the assessee had raised three grounds in the application, including issues related to Fair Market Value (FMV) computation and the 14A disallowance. However, it was observed that no separate ground was specifically raised for the 14A disallowance. Consequently, Ground No.1(c) was found unadjudicated, prompting the Tribunal to recall its order in that regard. Additionally, the Tribunal acknowledged that the case laws cited by the assessee were not considered in the previous order, leading to the decision to recall the order concerning Grounds No.1(a) and 1(b) as well.

As a result of the above analysis, the Tribunal directed the registry to schedule the case before the regular Bench for a fresh hearing of the appeal filed by the assessee. Ultimately, the Miscellaneous Application filed by the assessee was allowed, and the order was pronounced in the open court on 15th June 2018.