2020 (3) TMI 1248 - AT - Income Tax

Rectification of mistake - mistake apparent on record - Grounds not adjudicated - Addition u/s 14A - whether earning of income is not essential for incurring expenditure? - whether CIT(A) has incorrectly relied on Delhi High Court decision in the case of Cheminvest Ltd. 2015 (9) TMI 238 - DELHI HIGH COURT given that the issue has not reached finality, as the Hon'ble Supreme Court in case of Godrej Boyce Manufacturing Co. Ltd., 2017 (9) TMI 1689 - SUPREME COURT is yet to pronounce its order in the question of Whether provision of Section 14A of the Act are applicable even when no exempt income is earned? - THAT - We find from the order passed in 2019 (4) TMI 1888 - ITAT VISAKHAPATNAM that ground Nos. 5 6 are not adjudicated, therefore there is a mistake apparent on record, hence, it has to be recalled. Accordingly, recalled the order passed only to adjudicate the ground Nos. 5 6. Registry is directed to post the appeal for hearing on 16/03/2020. Misc. Application filed by the assessee is allowed.

Summary

Issues:
Recall of order due to non-adjudication of specific grounds in the appeal.

Analysis:
The Appellate Tribunal ITAT Visakhapatnam considered a Misc. Application filed by the assessee seeking the recall of the order passed in ITA No.541/VIZ/2018 on the grounds that certain issues were not adjudicated. The Revenue had raised various grounds of appeal, including contentions related to technical services, tax deductions, and reliance on legal precedents. The Tribunal noted that ground Nos. 5 & 6 were indeed not adjudicated in the previous order, leading to a mistake apparent on record. Consequently, the Tribunal decided to recall the order specifically to address these grounds. The Tribunal directed the Registry to schedule a new hearing for the appeal on a specified date without the need for separate notices to the parties. Ultimately, the Tribunal allowed the Misc. Application filed by the assessee, and the order was pronounced in open court on March 6th, 2020.