2018 (3) TMI 1873 - AT - Income Tax

Tribunal grants recall for specific appeal ground, highlighting fair adjudication process

Smt. N. Padmaja Versus Dy. CIT, Circle 3 (2), Hyderabad

The Tribunal allowed the Miscellaneous Applications filed by the assessee, directing the recall of the order solely for the adjudication of ground of ... Alternate ground of the appeal - Rectification of mistake - Reopening of assessment - addition made u/s 69 and u/s 69A of the Act towards unexplained investment in jewellery and cash deposits - as per CIT-A even if the above addition is deleted, it is still liable to be taxed u/s 2(22)(e) - assessee has raised the alternative grounds in both the appeals that it cannot be treated as a deemed divided u/s 2(22)(e) and Revenue filed the M.A. contending that the alternative ground raised by the assessee on similar lines as in A.Y 2010-11 has not been adjudicated by the Tribunal resulting in an apparent mistake which needs rectification - HELD THAT:- We have gone through order of the Tribunal and we find that the alternate ground of the appeal of the assessee has not been adjudicated. Further, we also find that even the revenue had filed MA [2018 (1) TMI 1599 - ITAT HYDERABAD] seeking recall of the order of the Tribunal for non-adjudication of the alternate ground of appeal and we had held that even if the alternate grounds raised by the assessee are not adjudicated, no prejudice is caused to the interest of the Revenue. Thus, MA filed by the Revenue was rejected. In view of the same, we deem it fit and proper to recall the order of the Tribunal only for adjudication of ground of appeal No. 11. Issues:Recall of order for adjudication of alternate ground of appeal.Analysis:The judgment pertains to two Miscellaneous Applications (MAs) filed by the assessee in relation to Income Tax Appeals for the assessment years 2006-07 and 2010-11. The assessee sought the recall of the Tribunal's order dated 06.07.2017 to adjudicate on the alternate ground of appeal No. 11 that was raised in the grounds of appeal. It was argued that failure to address this ground could lead to prejudice if the order was overturned on a revenue appeal. The Learned DR was also heard in this matter.Upon review, it was observed that the Tribunal had not addressed the alternate ground of appeal raised by the assessee. It was noted that the revenue had also filed MAs seeking a similar recall for non-adjudication of the alternate ground of appeal. The Tribunal had previously held that the revenue's interest would not be prejudiced even if the alternate grounds raised by the assessee were not adjudicated. Consequently, the MA filed by the revenue was rejected, and it was deemed appropriate to recall the order solely for the adjudication of ground of appeal No. 11. As a result, the MAs filed by the assessee were allowed, and the appeals were scheduled for a hearing on 25.05.2018. Since the hearing date was announced in the presence of both parties, no fresh notice was deemed necessary.In conclusion, the Tribunal allowed the MAs filed by the assessee, emphasizing the importance of addressing the alternate ground of appeal to ensure a fair adjudication process. The order was pronounced in the Open Court on 16th March 2018, marking a significant development in the ongoing legal proceedings.