2019 (1) TMI 1740 - AT - Income Tax

Rectification of mistake - Disallowance u/s 14A read with Rule 8D to the Book Profit while computing the MAT u/s 115JB - disallowing interest being proportionate interest expenditure which was alleged to be incurred towards extending interest free loans and advances to sister concerns - disallowance of employees contribution to Provident Fund as the payment in respect of the same was not made within the due date specified in the Act - disallowing expenses by alleging the same to be prior period expenditure have not been decided by the Tribunal which amounts to mistake apparent from record - Accordingly we recall the order with a limited scope of deciding the ground 5, 6, 7 8.

Summary

Issues involved:
Appeal grounds not decided by Tribunal

Analysis:
The judgment pertains to a Miscellaneous Application (MA) arising out of ITA No.1017/Mum/2018, where the Ld. AR contended that the Tribunal did not decide four grounds out of the nine grounds raised in the appeal, which was considered a mistake apparent from the record. The grounds in question were related to various additions and disallowances made by the Assessing Officer. Ground no. 5 dealt with the addition of disallowance made under section 14A read with Rule 8D to the Book Profit while computing the Minimum Alternate Tax (MAT) under section 115JB. Ground no. 6 focused on the disallowance of interest expenditure alleged to be incurred towards extending interest-free loans and advances to sister concerns. Ground no. 7 concerned the disallowance of employees' contribution to Provident Fund due to non-payment within the specified due date. Ground no. 8 involved the disallowance of expenses alleged to be prior period expenditure. The Tribunal acknowledged the oversight in not deciding these grounds and decided to recall the order with a limited scope to address the specific grounds 5, 6, 7, and 8.

The Tribunal allowed the MA filed by the assessee, thereby granting relief in favor of the assessee by agreeing to reconsider and decide the grounds that were previously left undecided. The order was pronounced in the open court on 18/01/2019.