2021 (5) TMI 302 - AT - Income Tax

Rectification u/s 254 - Transfer pricing adjustment on account of comfort guarantee - HELD THAT - We hold that this Tribunal had duly adjudicated the ground of appeal raised by the Revenue which was enclosed alongwith Form No.36 and which was also duly signed by the ld. AO. In any case, the Tribunal is expected to adjudicate the grounds raised before it by the ld. AO that has been duly done in the instant case. Hence, we hold that this is not a fit case warranting any rectification u/s.254(2) of the Act, hence, the grounds raised in the Miscellaneous Application are dismissed.

Summary

Issues:
Recall of order passed by the Tribunal in ITA No.5841/Mum/2017 for A.Y. 2013-14 due to discrepancy in grounds of appeal filed by the Revenue.

Analysis:
The Appellate Tribunal received a Miscellaneous Application from the Revenue seeking to recall the order passed in a specific case for the assessment year 2013-14. The main contention of the Revenue was that the Principal Commissioner had authorized the Assessing Officer to file 12 grounds of appeal, but only one ground was raised in the appeal related to transfer pricing adjustment on account of comfort guarantee. The Tribunal noted that it had already adjudicated the ground raised before it, even though the authorization memo approved 12 grounds by the Revenue. The Tribunal clarified that it is required to adjudicate the grounds of appeal raised before it by either party. The Tribunal emphasized that if the Assessing Officer chose not to raise the other approved grounds, it was an internal issue between the Assessing Officer and the Principal Commissioner, not an error on the part of the Tribunal. The Tribunal also highlighted that the Revenue had failed to submit written submissions despite being given sufficient time to do so. Consequently, the Tribunal found no basis to rectify the order under section 254(2) of the Act and dismissed the Miscellaneous Application.

The Tribunal concluded that it had duly adjudicated the ground of appeal raised by the Revenue, which was filed along with Form No. 36 and signed by the Assessing Officer. The Tribunal reiterated that it is expected to adjudicate the grounds raised before it by the Assessing Officer, which was done in this case. Therefore, the Tribunal held that there was no justification for rectification under section 254(2) of the Act, leading to the dismissal of the grounds raised in the Miscellaneous Application. As a result, the Miscellaneous Application of the Revenue was dismissed, and the order was pronounced on 09/04/2021.