2024 (11) TMI 848 - AT - Income Tax

Rectification of mistake - Reopening of assessment u/s 147 v/s assessment u/s 153C - information or seized document pertains/ belongs to the assessee was found at searched person place - AR mentioned that the Hon ble Tribunal has not considered the judicial decisions and dismissed the additional ground of appeal and sustained the decision of the CIT(A) upholding the validity of the reassessment proceedings U/sec147 of the Act HELD THAT - We support our view relying on the decision of the Hon ble Supreme Court in the case of Honda Siel Power Productions Ltd. 2007 (11) TMI 8 - SUPREME COURT reversing the decision of the High Court, that in allowing the rectification application the Tribunal gave a finding that the earlier decision of a co-ordinate Bench was cited before it but through oversight it had missed the judgment while dismissing the appeal filed by the assessee on the question of admissibility/allowability of the claim of the assessee for enhanced depreciation under section 43A. One of the important reasons for giving the power of rectification to the Tribunal under section 254(2) was to see that no prejudice was caused to either of the parties appearing before it. The rule of precedent was an important aspect of certainty in the rule of law, and prejudice had resulted to the assessee since the precedent had not been considered by the Tribunal. The Tribunal was justified in rectifying the mistake on record. We, thus find that non consideration of judicial decisions cited before the bench is a mistake apparent from the record Accordingly, in the interest of principles of natural justice, we recall the Hon ble Tribunal order 2022 (11) TMI 443 - ITAT MUMBAI and direct the registry to post the appeal for regular hearing and inform the parties.

Summary

Issues:
Rectification of mistake apparent in Tribunal order, Validity of reassessment proceedings under section 147, Consideration of judicial decisions in Tribunal's order.

Analysis:
The judgment pertains to two miscellaneous applications filed by the assessee seeking rectification of a mistake apparent in the Tribunal order dated 10.08.2022 for the assessment years 2009-10 and 2010-11. The High Court set aside the Tribunal's order and remanded the matter for re-hearing the miscellaneous applications. The issue revolved around the reassessment proceedings under section 147 of the Income Tax Act and the invocation of section 153C in cases where information pertains to the assessee found at another person's place. The assessee contended that the Tribunal did not consider relevant judicial decisions, leading to the dismissal of additional grounds of appeal. The Department, on the other hand, supported the Tribunal's order.

The assessee cited the decision of the Visakhapatnam bench and another case to support their argument that assessments made under section 147 without issuing notice under section 153C were illegal. Additionally, a decision regarding the condonation of delay in filing an appeal was presented. The Tribunal, in its analysis, noted that the cited decisions were not considered and relied on a Supreme Court decision emphasizing the Tribunal's duty to rectify mistakes to prevent prejudice to any party. The Tribunal concluded that the failure to consider the judicial decisions was a mistake apparent from the record, leading to the recall of the Tribunal order dated 10.08.2022 for regular hearing.

In light of the above analysis, the Tribunal allowed the miscellaneous applications filed by the assessee, emphasizing the importance of considering relevant judicial decisions in Tribunal orders to ensure the principles of natural justice. The judgment highlights the significance of rectifying mistakes to prevent prejudice and uphold fairness in legal proceedings.