2021 (9) TMI 1538 - AT - Income Tax

Rectification of mistake - TP adjustment on account of payment of I.T. Licence Maintenance cost - HELD THAT - We find that the CIT(A) in the impugned order has given a finding that no tax has been deducted by the assessee on payment for I.T. Licence Maintenance Cost. Whereas the contention of assessee is that the assessee has deducted tax at the rate of 21.115% under section 206AA of the Act. The Tribunal after considering entire facts has restored the issue back to the file of TPO/AO to reexamine the issue. Since the issue required examination of documents the Tribunal has rightly restored the issue back to TPO/AO. Assessee has failed to point out any mistake much less any apparent mistake requiring indulgence u/s 254(2) of the Act. Therefore the first prayer made by assessee is rejected. Adjustment on account of payment of interest on trade creditors - Tribunal has wrongly mentioned in the order that the assessee filed additional evidence i.e. Circular issued by Peri GMBH (Parent company of the assessee/applicant) - As assessee made a statement at the Bar that though the said circular was filed but no reliance was being placed on that circular and prayer to admit aforesaid circular as additional evidence was not made. The assessee does not want to place reliance on the said circular as the issue can be decided without making reference to the above circular. In the light of statement made by assessee we are of considered view that the error has crept in the order of Tribunal in taking cognizance of the circular as additional evidence. Since no reliance was placed by assessee the Tribunal has erred in taking cognizance of the circular. Therefore the second prayer of the assessee seeking rectification of the finding in para-11 of the order of Tribunal 2021 (3) TMI 403 - ITAT MUMBAI is accepted.

Summary

Issues:
1. Rectification in para-6 of the Tribunal order dated 05.03.2020 regarding adjustment on account of payment of I.T. Licence Maintenance cost.
2. Rectification in para-11 of the Tribunal order dated 05.03.2020 regarding adjustment on account of payment of interest on trade creditors.
3. Rectification in the order of Tribunal in ITA No. 4607/Mum/2019 for A.Y. 2013-14 regarding additional evidence filed by the assessee.

Issue 1: Rectification in para-6 of the Tribunal order dated 05.03.2020
The assessee filed a Miscellaneous Application seeking rectification in the Tribunal order concerning the adjustment on account of payment of I.T. Licence Maintenance cost for the Assessment Year 2012-13. The Tribunal had remitted the issue back to the Transfer Pricing Officer (TPO)/Assessing Officer (AO) for reexamination based on the evidence provided by the assessee. The Authorized Representative (AR) argued that the Tribunal should have decided the issue instead of remitting it to the AO/TPO since all material was available. The Department opposed the rectification, stating that the issue required fresh examination based on the evidence furnished. The Tribunal rejected the first prayer for rectification, finding no apparent mistake in its decision.

Issue 2: Rectification in para-11 of the Tribunal order dated 05.03.2020
The second prayer for rectification was related to para-11 of the Tribunal order concerning the adjustment on account of payment of interest on trade creditors. The Tribunal had mentioned the filing of additional evidence by the assessee, specifically a circular, which the AR clarified was not being relied upon. The Tribunal accepted the second prayer for rectification, acknowledging the error in considering the circular as additional evidence when no reliance was placed on it. The order was recalled for the limited purpose of adjudicating specific grounds of appeal.

Issue 3: Rectification in the order of Tribunal in ITA No. 4607/Mum/2019 for A.Y. 2013-14
The assessee filed another Miscellaneous Application seeking rectification in the order of Tribunal in ITA No. 4607/Mum/2019 for the Assessment Year 2013-14. The issue pertained to the adjustment on account of payment for corporate guarantee fee. The Tribunal had mentioned the filing of additional evidence by the assessee, but the AR clarified that no reliance was placed on any additional evidence. Consequently, the Tribunal allowed the Miscellaneous Application, recalling the order for the limited purpose of adjudicating specific grounds of appeal.

In conclusion, the Appellate Tribunal ITAT Mumbai addressed various rectification requests in the mentioned judgments, focusing on adjustments related to different payments and the consideration of additional evidence. The Tribunal carefully analyzed the arguments presented by the parties and made decisions based on the merits of each issue, ultimately allowing some rectifications while rejecting others to ensure a fair and accurate adjudication process.