2021 (6) TMI 1057 - AT - Income Tax

Rectification of mistake u/s 254 - grounds nos. 3 and 4 of appeal memo regarding disallowance of commission payment remains un-adjudicated - HELD THAT - It is a settled position of law that non-disposal of the grounds of appeal raised by the appellant is a mistake apparent from the record, capable of being rectified under Sec.254(2) - Accordingly, the appeal is recalled for the limited purpose of adjudicating of grounds of appeal. The Registry is directed to fix the appeal of hearing in due course. Accordingly, the Miscellaneous Application filed by the Revenue stands allowed. 5. In the result, the Miscellaneous Application filed by the Revenue is allowed.

Summary

Issues:
1. Non-adjudication of grounds of appeal regarding disallowance of commission payment in the assessment year 2009-10.

Analysis:
The Appellate Tribunal received a Miscellaneous Application from the Revenue concerning an order passed in ITA No.104/PUN/2015 for the assessment year 2009-10. The application highlighted that grounds 3 and 4 of the appeal memo, related to the disallowance of commission payment amounting to ?14,19,455, were left un-adjudicated. Despite the absence of the assess, the Tribunal proceeded to hear the case. It was noted that the Revenue's appeal raised concerns about the deletion of the disallowance of commission paid to liaison representatives, citing decisions applicable to Limited Companies, which were deemed inapplicable to the Private Limited Company in question. Additionally, the appeal contested the failure to recognize that the disallowance was based on evidence gathered during a survey conducted by the Assessing Officer.

The Tribunal acknowledged the settled legal principle that the non-disposal of grounds of appeal by the appellant constitutes a mistake apparent from the record, rectifiable under Sec.254(2) of the Income Tax Act, 1961. Consequently, the appeal was recalled for the specific purpose of adjudicating the grounds raised by the Revenue. The Registry was instructed to schedule the appeal for a hearing accordingly. As a result, the Miscellaneous Application submitted by the Revenue was allowed, and the order was pronounced on the 4th day of June, 2021.