2022 (5) TMI 1503 - AT - Income Tax

Tribunal recalls revenue favoring order in appeal due to oversight in addressing remanded issue.

The Tribunal recalled its order favoring the revenue in an appeal due to failure to address a specific issue remanded by the High Court. The petitioner, ... Recall tribunal order - issue not atall considered in order - Miscellaneous Petition - Exemption u/s 11 - Violation of provisions of Section 13(1 )(c) and 13(1)(d) - loans and advances to interested persons assessee seeks recall of Tribunal order [2022 (4) TMI 335 - ITAT CHENNAI] which has allowed the appeal of the revenue - AR submitted that the matter was remanded back by Hon’ble High Court of Madras [2021 (8) TMI 1363 - MADRAS HIGH for the limited purpose of adjudicating the question in respect of the building contract awarded to the trustees of the assessee but this issue has not been, at all, discussed in the order and therefore the order deserves to be recalled. The Ld. Sr. DR concurred with the submissions of Ld. AR. HELD THAT:- The order passed by Tribunal and recalled. The appeal shall come up for fresh hearing before ‘C’ Bench on 29.06.2022. Both parties informed and accordingly, service of notice is dispensed with. Issues:Recall of Tribunal order based on failure to discuss a specific issue remanded by the High Court.Analysis:The judgment pertains to a Miscellaneous Petition seeking the recall of a Tribunal order dated 31.03.2022, which had favored the revenue in an appeal. The petitioner, the assessee, argued that the High Court of Madras had remanded the matter back for the specific purpose of adjudicating the question related to a building contract worth Rs.5.02 Crores awarded to the trustees of the assessee. The petitioner contended that this crucial issue was not addressed in the Tribunal's order, warranting a recall. Both the Ld. AR and Ld. Sr. DR agreed on the absence of discussion on this critical matter.The Tribunal, acknowledging the oversight, decided to recall the order passed in ITA No.970/Chny/2014 on 31.03.2022. The case is now scheduled for fresh hearing before the 'C' Bench on 29.06.2022. Both parties have been duly informed, and the service of notice has been dispensed with. Consequently, the Miscellaneous Petition has been allowed as per the terms of the aforementioned order.The presiding members, Hon'ble Shri Mahavir Singh, VP, and Hon'ble Shri Manoj Kumar Aggarwal, AM, pronounced the order in open court on 13th May 2022. The judgment highlights the importance of addressing all remanded issues as directed by the higher court and the procedural remedy available in case of oversight or omission in the Tribunal's decision-making process.