2023 (7) TMI 1405 - AT - Income Tax

Rectification u/s 254 - Deduction u/s 80IB denied for non-filing of a valid sec.139(1) return - HELD THAT - We are of the view that till the time the assessee fails to pinpoint any apparent mistake in our order within the four corners of sec 254(2) jurisdiction as per Saurashtra Kutch Stock Exchange Ltd. 2008 (9) TMI 11 - SUPREME COURT , Reliance Telecom Ltd. 2021 (12) TMI 211 - SUPREME COURT and Ramesh Electric and Trading Co. 1992 (11) TMI 32 - BOMBAY HIGH COURT that our rectification jurisdiction is confined only to correct apparent mistakes than adopting long drawn process of roving enquiries, such a prayer raised at assessee s behest hardly deserves acceptance. This is indeed coupled with the fact not only we had passed our order 2020 (5) TMI 718 - ITAT PUNE which was never placed before their lordships but also Order 47 Rule 1 and 2 CPC giving rise to applicability of the Code of Civil Procedure does not apply to Income Tax Act, 1961. We accordingly reject the assessee s arguments.

Summary

Issues Involved:

1. Recall of Tribunal's Order
2. Section 80IB(10) Deduction and Delay in Filing Return
3. Condonation of Delay under Section 119(2)(b)
4. Jurisdiction and Applicability of Order 47 Rule 1 and 2 of CPC

Summary:

1. Recall of Tribunal's Order:

The assessee filed a miscellaneous application under Section 254(2) of the Income Tax Act, 1961, seeking to recall the Tribunal's order dated 04.05.2022, which dismissed its main appeal ITA.No.1423/PUN./2017 regarding Section 80IB(10) deduction due to non-filing of a valid Section 139(1) return.

2. Section 80IB(10) Deduction and Delay in Filing Return:

The main appeal was dismissed because the return of income for AY 2011-12 was filed 365 days late. The assessee's writ petition before the High Court resulted in directions to consider the claim for deduction under Section 80IB(10) despite the delay. The High Court noted that the assessee's joint venture partner was allowed deductions for other years and that the delay was due to the severe health issues of the income tax consultant's son.

3. Condonation of Delay under Section 119(2)(b):

The CBDT rejected the application for condonation of delay, citing insufficient reasons and lack of genuine hardship. The High Court, however, emphasized that the phrase "genuine hardship" should be construed liberally to do substantive justice. It noted that the delay was not deliberate or due to negligence but was caused by the consultant's family health issues. The High Court set aside the CBDT's order and directed the income tax authorities to consider the claim for deduction as if there was no delay.

4. Jurisdiction and Applicability of Order 47 Rule 1 and 2 of CPC:

The Tribunal held that it could not recall its order under Section 254(2) as the assessee failed to pinpoint any apparent mistake within the jurisdictional limits. The Tribunal also noted that Order 47 Rule 1 and 2 of the CPC does not apply to the Income Tax Act, 1961. Consequently, the assessee's miscellaneous application was dismissed.

Conclusion:

The Tribunal dismissed the assessee's application to recall its order, emphasizing the limited scope of Section 254(2) and the inapplicability of CPC provisions to the Income Tax Act. The High Court's directions for liberal interpretation of "genuine hardship" and substantive justice were acknowledged but did not alter the Tribunal's decision.