Tribunal dismisses assessee's challenge citing incorrect law section, no merit found

The Tribunal dismissed the assessee's Miscellaneous Application challenging the Tribunal order for not following a Supreme Court decision. The Tribunal found no merit in the application, noting that the judgment cited by the assessee was not applicable as it pertained to a different section of the law. The Tribunal clarified that the judgment from a similar case cited by the assessee was issued after the Tribunal order in question. Consequently, the Tribunal concluded that there was no mistake in the order requiring rectification, and the assessee's application was dismissed.

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Issues involved: Miscellaneous Application filed by the assessee challenging the Tribunal order for not following the Supreme Court decision and seeking rectification u/s 254(2).

Summary:

Issue 1: Alleged mistake in Tribunal order
The assessee filed a Miscellaneous Application contending that the Tribunal did not follow the Supreme Court decision approving the judgment of the Hon'ble Karnataka High Court in the case of CIT vs. Kwality Biscuits Ltd. The assessee argued that there was a mistake apparent in the Tribunal order dated 5.8.2004 and requested for its recall.

Issue 2: Comparison of cases
During the hearing, it was highlighted that the issue in the Kwality Biscuits Ltd. case was about charging interest u/s. 234B and 234C on book profit computed u/s.115J, whereas in the present case, it was about charging interest u/s.2346 on book profit computed u/s.115JA. The Bangalore Bench of the Tribunal had ruled in favor of the assessee in a similar case, IBM vs. CIT, reported in 290 ITR (AT) 183. The Departmental Representative argued that there was no mistake in the Tribunal order.

Judgment:
After considering the submissions and reviewing the material, the Tribunal found no merit in the assessee's Miscellaneous Application. It was noted that the judgment of the Hon'ble Karnataka High Court in the Kwality Biscuits Ltd. case was duly considered in the impugned Tribunal order but was not followed as it pertained to Section 115J, whereas the present case involved Section 115JA. The Tribunal observed that the provisions differed between the two sections, and hence, the judgment was not applicable. The Tribunal also clarified that the judgment of the IBM case cited by the assessee was not relevant to the present case as it was issued after the impugned Tribunal order. Therefore, the Tribunal dismissed the assessee's application, stating that there was no mistake in the Tribunal order that required rectification u/s 254(2).

Result:
The Miscellaneous Application of the assessee was dismissed, and the order was pronounced in the open court on 19.7.2007.

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