2023 (9) TMI 1418 - AT - Income Tax

Rectification u/s 254 - recall the impugned order 2022 (4) TMI 1058 - ITAT MUMBAI dated 23.03.2022 in ITA No. 1034 1035/M/2010 and ITA No.2041/M/2010 to rectify the mistake apparent on record - as argued Tribunal has not considered the decision rendered in case of CIT-9 Vs. M/s. Indo American Jewellery Ltd 2013 (1) TMI 804 - BOMBAY HIGH COURT while deciding the ground No.2 raised by the Assessee for not charging interest while extending credits to its USA-Associated Enterprises for payment of sale consideration of qua which addition has been made by AO/TPO which was required to be deleted by the Tribunal - HELD THAT - As in the interest of justice application under consideration is being decided on merits. When the issue raised by the assessee by virtue of the ground No.2 has already been dealt with in the decision rendered by Hon ble Bombay High Court in case of M/s. Indo American Jewellery Ltd. (supra), but the same has not been considered by the co-ordinate bench while passing the order is certainly a mistake apparent on record. Moreover, in the connected 2022 (4) TMI 1058 - ITAT MUMBAI ITA No.1035/M/2010 , MA filed on the same ground has already been allowed vide order dated 13.04.2023. So to decide the issue once for all and to further curtail the multiplicity of litigation, order passed by the co-ordinate Bench of the Tribunal is hereby recalled to decide afresh after providing opportunity of being heard to the assessee.

Summary

Issues involved:
The judgment involves a request to recall an order under section 254(2) of the Income Tax Act, 1961 based on the failure to consider a decision by the Hon'ble Bombay High Court in a specific case concerning interest charged on credits extended to USA-Associated Enterprises for payment of sale consideration.

Issue 1: Request to recall order based on failure to consider relevant decision
The applicant, M/s. Tech Mahindra Ltd., sought to recall the impugned order dated 23.03.2022 in ITA No. 1034 & 1035/M/2010 and ITA No.2041/M/2010 to rectify a mistake apparent on record. They argued that the Tribunal did not consider the decision rendered by the Hon'ble Bombay High Court in the case of CIT-9 Vs. M/s. Indo American Jewellery Ltd. The issue pertained to not charging interest while extending credits to USA-Associated Enterprises, resulting in an addition made by the Assessing Officer/Transfer Pricing Officer.

Issue 2: Opposition to the application by the Revenue
The Learned D.R. for the Revenue opposed the application, asserting that the Tribunal's order was in line with the facts and arguments presented during the appeal. The Revenue contended that the application by the assessee should be dismissed.

Issue 3: Decision to recall the order
After hearing the authorized representatives of both parties and reviewing the order passed by the co-ordinate Bench of the Tribunal, it was noted that the Tribunal had not considered the decision of the Hon'ble Bombay High Court in a similar case. As a result, the order was recalled to provide an opportunity for the assessee to be heard afresh, in order to address the mistake apparent on record and avoid further litigation.

This judgment highlights the importance of considering relevant legal decisions in tax matters and ensuring that all aspects are thoroughly examined before reaching a final decision.