2014 (1) TMI 1887 - AT - Income Tax

Rectification u/s 254 - decisions relied upon by the Ld. AR have escaped consideration - HELD THAT - It is apparent from the finding of the Tribunal in para 37 that the decisions relied upon by the Ld. AR have escaped consideration, accordingly we are of the view that to that extent there is an apparent error in the impugn order of the Tribunal which requires to be rectified u/s 254(2) of the Income Tax Act. Since these issues were raised for the first time and remitted to the record of the AO for examination and adjudication we modify our finding on the additional grounds no. 1-3. Since the issue has not been examined by the AO, therefore, in the interest of justice we remit these grounds to the record of the Assessing Officer for fresh examination and adjudication after considering the decisions relied upon by the assessee as well as after giving opportunity of hearing to the assessee. Miscellaneous application of the assessee is allowed as impugned order is modified above.

Summary

Issues:
Rectification of error in the Tribunal's order regarding additional grounds raised by the assessee.

Analysis:
The assessee sought rectification of an error in the Tribunal's order dated 26th July 2013 in ITA No. 5470/Mum/2002. The grievance was related to additional grounds raised by the assessee, which were remitted to the assessing officer for examination and adjudication. The assessee argued that these grounds, primarily legal issues, were admitted for adjudication on merit by the Tribunal. The assessee relied on various decisions supporting their claims, which were not mentioned in the Tribunal's order. The Tribunal's order stated that the additional grounds were remitted to the assessing officer for examination and adjudication as per law. However, the decisions relied upon by the assessee were not considered in the order.

The Tribunal noted that the decisions relied upon by the assessee were not considered in the order, indicating an error that needed rectification under section 254(2) of the Income Tax Act. The Tribunal modified its finding on the additional grounds raised by the assessee, acknowledging the legal issues involved and the decisions supporting the claims. The Tribunal remitted these grounds to the assessing officer for fresh examination and adjudication, emphasizing the importance of considering the decisions relied upon by the assessee and providing an opportunity for the assessee to be heard.

In conclusion, the Tribunal allowed the assessee's miscellaneous application, modifying the impugned order to rectify the error regarding the additional grounds raised by the assessee. The order was pronounced in the open court on 3rd January 2014.