2015 (1) TMI 1450 - AT - Income Tax

Rectification of mistake - Validity of search and assumption of jurisdiction u/s 153A against regular assessment u/s 143(3) - HELD THAT -For the assessment year 2011-12 it was a regular assessment u/s 143(3) and not assessment made u/s 153A of the Act and grounds raised were against the additions made during the assessment. Tribunal, while disposing of the group of appeals for the assessment years 2005-06 to 2011-12, had disposed of the appeal for assessment year 2011-12 also by remanding the matter to the CIT(A) to adjudicate the ground about validity of the assessment proceedings u/s 153A of the Act without considering the fact that the said ground of appeal did not arise in the assessment year 2011-12. Thus there is a mistake apparent from the face of the record requiring rectification Having regard to the rival contentions and the material on record and also on further perusal of the grounds of appeal raised by the assessee in 2014 (11) TMI 1189 - ITAT BANGALORE grounds are against the additions made in the assessment completed u/s 143(3) and not against the validity of the proceedings u/s 153A of the Act. Therefore, we are satisfied that there is a mistake apparent from order of the Tribunal which needs rectification. Accordingly, we recall the order of the Tribunal and direct the registry to fix the appeal for hearing in regular course.

Summary

Issues:
Seeking recall of the order of the Tribunal in ITA No.585/Bang/2014 for assessment years 2005-06 to 2011-12.

Analysis:
The Miscellaneous Petition was filed by the assessee to recall the Tribunal's order concerning assessment years 2005-06 to 2011-12. The counsel for the assessee argued that a common ground challenging the validity of search and assumption of jurisdiction under section 153A of the Income-tax Act, 1961, was raised for the assessment years from 2005-06 to 2010-11. However, for the assessment year 2011-12, it was a regular assessment under section 143(3) with grounds against the additions made during the assessment. The Tribunal had disposed of the appeals for the assessment years 2005-06 to 2011-12, remanding the matter for assessment year 2011-12 to the CIT(A) to adjudicate on the validity of the assessment proceedings under section 153A, even though this ground did not apply to that year. Both the assessee's counsel and the Departmental Representative acknowledged this mistake.

Upon reviewing the grounds of appeal for assessment year 2011-12 in ITA No.585/Bang/2014, it was found that the grounds were related to the additions made in the assessment under section 143(3) and not the validity of proceedings under section 153A. Recognizing the mistake in the Tribunal's order, it was concluded that there was a need for rectification. Consequently, the Tribunal recalled the order only in ITA No.585/Bang/2014 dated 21/11/2014 and instructed the registry to schedule the appeal for a regular hearing.

In conclusion, the Miscellaneous Petition was allowed, and the order was pronounced in the open court on 23rd January 2015.