2019 (12) TMI 302 - AT - Income Tax

Rectification of mistake - error apparent on the face of record or not - HELD THAT - The claim of assessee appears to be correct and accordingly, we modify the order of this Tribunal in page 1 thereon, that returned loss should be ₹ 156,34,64,632/- as against returned income wrongly mentioned in the tabulation in the said order. Disallowance made for provision for doubtful debts while computing book profits u/s 115JB of the Act - HELD THAT - The assessee had made provision for doubtful debts in the sum of ₹ 6.16 Crores and had claimed the same as deduction while computing the book profits u/s 115JB of the Act in the return of income. The ld. AO added the same in the assessment u/s 115JB of the Act. Then, this matter had travelled before this Tribunal, wherein the ld. AR of the assessee had conceded this issue to be decided against the assessee in view of retrospective amendment brought in the section - When the ld. AR admits at the time of hearing that the said ground was not pressed by him in view of the retrospective amendment in the statute and especially the fact of admission by the ld. AR is not in dispute before us, in our considered opinion, the same would only constitute mistake committed by the ld. AR on behalf of the assessee. Hence, it would not fall under the ambit of mistake apparent on record committed by the Tribunal in the order warranting rectification u/s 254(2) of the Act. Hence, the ground raised by the assessee in its miscellaneous application are hereby dismissed. Non-adjudication of provision for warranty u/s 115JB of the Act - HELD THAT - This issue has not been adjudicated by this Tribunal. Hence, we find the claim of the assessee to be right and we are inclined to recall the order of this Tribunal dated 21/03/2018 for the limited purpose of adjudication of this issue alone i.e. ground No.12 raised by the assessee with regard to addition of provision for warranty vis- -vis under computation of book profits u/s 115JB of the Act - Registry is directed to re-fix the appeal for the limited purpose of adjudication of Ground No.12 raised thereon. Application allowed in part.

Summary

Issues:
1. Rectification of mistakes in the order passed by the Tribunal for A.Y. 2002-03.
2. Correcting errors in the grounds mentioned in the order for A.Y. 2002-03.
3. Disallowance of provision for doubtful debts while computing book profits u/s.115JB for A.Y. 2002-03.
4. Rectification of errors in the order passed by the Tribunal for A.Y. 2003-04.
5. Correction of expenditure amount for a project in the order for A.Y. 2003-04.
6. Disallowance of provision for doubtful debts while computing book profits u/s.115JB for A.Y. 2003-04.
7. Non-adjudication of a specific ground related to provision for warranty u/s.115JB for A.Y. 2003-04.

Analysis:

1. The Tribunal acknowledged the mistakes pointed out by the assessee regarding the incorrect mention of returned income as a loss for A.Y. 2002-03. The order was modified accordingly to reflect the correct figures.

2. Errors in the grounds mentioned by the assessee were rectified for A.Y. 2002-03, ensuring the accurate representation of covered grounds and appeal numbers in the order.

3. The Tribunal dismissed the assessee's claim regarding the disallowance of provision for doubtful debts while computing book profits u/s.115JB for A.Y. 2002-03, citing the concession made by the authorized representative during the hearing.

4. Similar rectifications were made for A.Y. 2003-04, correcting the mentioned figures of returned income, assessed income, and project expenditure to align with the actual values.

5. The Tribunal addressed the errors in the expenditure amount related to a project for A.Y. 2003-04, modifying the order to reflect the correct figure.

6. The issue of provision for doubtful debts while computing book profits u/s.115JB for A.Y. 2003-04 was revisited. The Tribunal corrected the mentioned figure based on the clarification provided by the authorized representative during the miscellaneous application.

7. The Tribunal acknowledged the non-adjudication of a specific ground related to provision for warranty u/s.115JB for A.Y. 2003-04. The order was recalled for the limited purpose of adjudicating this specific issue.

In conclusion, the Tribunal partly allowed the miscellaneous applications of the assessee, making necessary modifications to the orders while retaining unchanged portions not affected by the rectifications. The judgments were pronounced in open court on the specified date.