2021 (4) TMI 1151 - AT - Income Tax

Rectification u/s 254 - HELD THAT - Having gone through the order of the Tribunal and also the grounds of appeal raised by the Revenue, we find that there is an inadvertent mistake in disposing of the appeal of the Revenue by not dealing with all the grounds raised by the Revenue. Since all the grounds were not adjudicated, we deem it fit and proper to amend last line of para No.6 of the ITAT order.

Summary

Issues:
1. Rectification of alleged mistake in the order of the Tribunal in ITA No.1795/Hyd/2018.
2. Discrepancy in disposing of the appeal by not addressing all grounds raised by the Revenue.

Analysis:
1. The Miscellaneous Application (MA) was filed by the Revenue under section 254(2) of the Income Tax Act seeking rectification of an alleged mistake in the order of the Tribunal in ITA No.1795/Hyd/2018 dated 31.12.2020. The issue arose from the CIT(A), Kurnool passing an order for the Assessment Year 2012-13, partly allowing the assessee's appeal. The AO had assessed the total income at ?29,37,92,150, making specific additions under different categories. The CIT(A) directed the AO to adopt a profit rate of 7% and made adjustments to agricultural income and other sources. The ITAT, Hyderabad remanded the issue of profit estimation back to the AO for reconsideration, without addressing other grounds raised by the Revenue. The MA sought rectification of this omission by the ITAT.

2. The Tribunal acknowledged that there was an inadvertent mistake in disposing of the Revenue's appeal by not addressing all the grounds raised. The grounds raised by the Revenue included challenges to the CIT(A)'s admission of additional evidence, direction on profit rate, and treatment of various income sources. The Tribunal found it necessary to amend its order to ensure all grounds were adjudicated. Referring to previous decisions, the Tribunal decided to remand the issue back to the AO for a fresh consideration of all issues and a de novo estimation of income. Consequently, the MA filed by the Revenue was allowed, and the order was pronounced in open court on 21st April 2021.

This detailed analysis covers the issues raised in the legal judgment, outlining the background, arguments, and the final decision rendered by the Tribunal.