2024 (2) TMI 1441 - AT - Income Tax

Miscellaneous application filled stating that there is no order of admission and consequent adjudication of additional ground of appeal - Disallowance of premium paid on account of repayment of optionally convertible debenture u/s 37 -Application of admission of additional evidence - HELD THAT - In the order of the coordinate bench, neither the additional evidences were admitted/rejected nor the additional ground was also admitted or rejected, therefore, the order suffers from a mistake. Accordingly, the above-impugned order is recalled to decide on admission of the additional ground of appeal raised by letter dated 16 March 2018. To that extent, the miscellaneous application of the assessee is allowed and registry is directed to fix the appeal of the assessee to adjudicate on the admission of the additional ground and thereafter to proceed, if admitted, to adjudicate the same.

Summary

Issues:
Admission of additional ground of appeal relating to disallowance of premium paid on account of repayment of optionally convertible debenture under section 37 of the act.

Analysis:
The Appellate Tribunal received a miscellaneous application from the assessee regarding the non-adjudication of an additional ground of appeal concerning the disallowance of premium paid on repayment of optionally convertible debentures. The application highlighted that the additional ground was filed on 16 March 2018, seeking deduction of the premium paid amounting to &8377; 33,860,754. The authorized representative argued that detailed submissions were made on the admissibility and merits of the additional ground, supported by judicial precedents. However, the coordinate bench did not address the admission of this ground, leading to the assertion that the order was erroneous in that respect and required rectification.

The departmental representative contended that the coordinate bench had already noted in its order that no arguments were presented for the admission of the additional ground, specifically for a different assessment year (2014-15), and therefore, there was no error in the order.

Upon careful consideration, the Tribunal observed that the coordinate bench had indeed recorded the application for admission of the additional ground but noted the absence of arguments for admission or any other relief, resulting in the dismissal of the application.

The assessee had filed an additional ground of appeal on 16 March 2018, requesting the assessing officer to allow deduction for the proportionate premium paid on the repayment of optionally convertible debentures. The application detailed the issuance and repayment of compulsorily convertible debentures, leading to the claim for deduction of the premium paid in the assessment year 2010-11. Additionally, an alternate claim was made in the assessment year 2014-15, which was rejected by the assessing officer, prompting the assessee to seek allowance of the premium paid through the additional ground.

Furthermore, the assessee had also submitted an application on 14 November 2018 for the admission of additional evidence related to this issue, indicating the efforts made to support the claim.

The Tribunal acknowledged that the order of the coordinate bench neither admitted nor rejected the additional evidence or the additional ground, leading to a mistake in the order. Consequently, the impugned order was recalled to decide on the admission of the additional ground raised by the assessee on 16 March 2018.

As a result, the miscellaneous application of the assessee was allowed, directing the registry to schedule the appeal for adjudication on the admission of the additional ground and subsequent proceedings if admitted. The order was pronounced in the open court on 26.02.2024.