2019 (7) TMI 1654 - AT - Income Tax

Enhancement of income by CIT-A - Addition of sale consideration of shares - not allowing any opportunity to the appellant as provided in section 251(2) - HELD THAT - As gone through the order of the Tribunal and noticed that this legal issue was not adjudicated. The learned Counsel for the assessee stated that he is only interested in recalling of the ground. DR could not controvert the above factual position and submissions of the learned Counsel for the assessee - As legal issue raised by assessee has not been adjudicated. Hence, the same requires adjudication. Hence, qua ground No. 3, the appeal of assessee is recalled.

Summary

Issues:
Rectification of mistake apparent on record in the order of Tribunal dated 07.08.2018 for A.Y 2001-02.

Analysis:
The judgment pertains to a Misc. Application filed by the assessee seeking rectification of a mistake apparent on record in the order of the Tribunal dated 07.08.2018 for the assessment year 2001-02. The issue raised by the assessee was regarding the direction given by the Commissioner of Income Tax (Appeals) to enhance the assessed income by a specific amount without providing an opportunity to the appellant as mandated by section 251(2) of the Act. The counsel for the assessee pointed out that this legal issue was not adjudicated upon by the Tribunal, and the only request was for the recall of the ground in question.

Upon examination, it was found that the legal issue raised by the assessee had indeed not been adjudicated. The Tribunal acknowledged this fact, and after considering the submissions of both sides, it was concluded that the issue required adjudication. Consequently, the Tribunal decided to recall the appeal of the assessee with respect to ground No. 3 for further consideration and adjudication. The order was pronounced in the open court on 26-07-2019.

This judgment highlights the significance of ensuring that all legal issues raised by parties are duly adjudicated upon by the Tribunal. It emphasizes the importance of providing a fair opportunity to the appellant in accordance with the provisions of the Act before making any decisions regarding the enhancement of assessed income. The decision to recall the appeal for further adjudication demonstrates the commitment of the Tribunal to uphold principles of natural justice and due process in tax matters.