2019 (5) TMI 1186 - AT - Income Tax

Rectification u/s 254 - error apparent on face of record - HELD THAT - In the third line of para 8 at page 4 of the Tribunal order, this Tribunal observed that Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority . This observation is inadvertently made. Accordingly, the following line at para 8 is deleted - Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority . Instead the following shall be inserted Therefore, this Tribunal finds justifiable reason to interfere with the order of the lower authority - Para 8 is rectified accordingly. Coming to page 5, on 8th and 9th line of para 10, this Tribunal observed as follows - Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority. It is an inadvertent mistake. Hence, the same is deleted. Instead, the following shall be inserted - Therefore, this Tribunal finds justifiable reason to interfere with the order of the lower authority The error at para 10 is rectified accordingly. Disallowance of production expenses - Admittedly, this ground was not disposed of by this Tribunal. As rightly submitted by the Ld. representative for the assessee, non-disposal of specific ground raised in the grounds of appeal is an error within the meaning of 254(2) of the Act. Therefore, it needs to be disposed of. Accordingly, the appeal is reopened only for the purpose of disposal of ground No.4. The Registry is directed to post the appeal for disposal of ground No.4 alone on 17.06.2019. Miscellaneous Petition filed by the assessee stands allowed.

Summary

Issues:
1. Errors in the Tribunal order regarding editing charges and entertainment expenditure.
2. Non-disposal of the issue of disallowance of production expenses.

Analysis:

Issue 1 - Errors in Tribunal Order:
The petitioner raised concerns about errors in the Tribunal order related to editing charges and entertainment expenditure. The Ld. representative highlighted that the Tribunal mistakenly stated that it did not find any reason to interfere with the lower authority's order in both instances. The Departmental Representative also acknowledged these errors. Upon review, the Tribunal agreed that these statements were inadvertent and needed rectification. The Tribunal corrected the statements in para 8 and para 10 of the order to accurately reflect that there were justifiable reasons to interfere with the lower authority's order in both cases. The errors were rectified to align with the actual decisions made by the Tribunal.

Issue 2 - Non-Disposal of Production Expenses Issue:
The Ld. representative pointed out that the Tribunal failed to address the issue of disallowance of production expenses amounting to &8377;26,75,000 as raised in the grounds of appeal. Both parties agreed that this was an error under Section 254(2) of the Income-tax Act, 1961. Consequently, the Tribunal decided to reopen the appeal solely for the purpose of addressing this specific ground. The appeal was scheduled for disposal of ground No.4 on a specified date. The Tribunal directed the Registry to post the appeal for this purpose without the need for a separate notice of hearing. This action aimed to rectify the oversight of not addressing the production expenses issue initially, ensuring all grounds raised by the assessee were considered and disposed of appropriately.

In conclusion, the Miscellaneous Petition filed by the assessee was allowed by the Tribunal, with corrections made to the errors in the order and the appeal reopened solely for addressing the issue of disallowance of production expenses. The Tribunal's decision aimed to uphold fairness and accuracy in the adjudication process, ensuring all relevant issues were properly addressed and resolved.