2024 (11) TMI 849 - AT - Income Tax

Rectification of mistake - Addition made in respect of Reserve for Unexpired Risks (URR) u/s 115JB - HELD THAT - We feel that the Tribunal made mistake in observing that the assessee agreed and hence, the above line may be read as under - Hence, taking a consistent view, we remit this issue also back to the file of the AO with similar direction to the AO as mentioned in para 15.10 of this order. Provision made towards Claims Incurred But Not Reported (IBNR) and Claims Incurred But Not Enough Reported (IBNER) added to the Book profits u/s 115JB - Revenue pointed out that this issue is neither adjudicated by the CIT(A) nor the Tribunal, on merits and only some facts are available in the order of the Assessing Officer. Hence, this issue can be remitted back to the file of the Assessing Officer before whom the assessee will place all evidences and prove whether claim made by the assessee is ascertained liability or unascertained liability. Rectification of mistake allowed as Tribunal has not adjudicated the addition grounds raised pertaining to considering of income as per 143(1)(a) of the Act and addition to book profit relating to URR, even though no amount have been debited to Profit Loss account - We have gone through the order of the Tribunal and noted that the Tribunal has not adjudicated these two additional grounds and hence, to that extent we recall the order of the Tribunal and direct the Registry to fix this appeal for the assessment year 2018-19 for hearing.

Summary

Issues:
Rectification of mistakes apparent from the record in the Tribunal's order regarding various issues including Reserve for Unexpired Risks (URR), Claims Incurred But Not Reported (IBNR) and Claims Incurred But Not Enough Reported (IBNER) under section 115JB of the Act for different assessment years.

Analysis:
The Appellate Tribunal, in response to four Miscellaneous Applications, rectified a mistake in the order where the Tribunal incorrectly observed that the assessee had agreed to remit certain issues back to the Assessing Officer. The Tribunal acknowledged the mistake and corrected the observation to accurately reflect that a consistent view was taken to remit the issues back to the Assessing Officer. This rectification was made with the agreement of the Senior DR.

Regarding the issues related to IBNR and IBNER, the Tribunal noted that these issues were not adjudicated on merits by the CIT(A) or the Tribunal. Both parties agreed that these issues should be remitted back to the Assessing Officer for further examination based on the evidence provided by the assessee. The Tribunal rectified the order to reflect this agreement and directed the issues to be reconsidered by the Assessing Officer.

In a separate application for the assessment year 2017-18, the Tribunal rectified an error in the amount mentioned in the order, correcting it from Rs. 1582.58 crores to Rs. 1582.98 crores. However, another mistake pointed out by the assessee regarding the restoration of a matter to the CIT(A) instead of the AO was dismissed by the Tribunal as no mistake was found in the order.

For the assessment year 2018-19, the Tribunal considered a miscellaneous application where the assessee raised issues regarding the Tribunal's failure to adjudicate on certain grounds related to income calculation and addition to book profit. The Tribunal acknowledged the omission and recalled the order to address these additional grounds in a future hearing.

Lastly, a miscellaneous application for the assessment year 2019-20 was withdrawn by the assessee during the hearing, with no objection from the Senior DR, leading to its dismissal.

In conclusion, the Tribunal allowed the miscellaneous applications for various assessment years, partly allowed one, and dismissed another, based on the rectification of mistakes apparent from the record and the specific issues raised by the assessee.