Tribunal grants rectification of mistakes in interest adjustment order for A.Ys 2013-14 & 2014-15

The Tribunal allowed the assessee's miscellaneous applications for rectification of mistakes in the order related to Arms' Length Adjustment of interest on outstanding receivables for A.Ys 2013-14 & 2014-15. The Tribunal recalled the order to adjudicate on additional and specific grounds raised by the assessee to ensure a fair consideration of all relevant issues. The decision aimed to address the oversight in not considering certain grounds and to provide a comprehensive resolution in the appeals for the respective assessment years.

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Issues:
1. Rectification of alleged mistakes in the order of the Tribunal for the A.Ys 2013-14 & 2014-15 regarding Arms’ Length Adjustment of interest on outstanding receivables.

Analysis:
1. The assessee filed miscellaneous applications seeking rectification of mistakes in the Tribunal's order for A.Ys 2013-14 & 2014-15, specifically related to Arms’ Length Adjustment of interest on outstanding receivables. The Tribunal had not adjudicated on certain grounds raised by the assessee, leading to the need for rectification.

2. In M.A. No.66/Hyd/2019, the Tribunal had set aside the issue to the file of the AO/TPO for consideration of industry average of interest on receivables. The Tribunal had directed to charge interest only on collections beyond the industrial average. However, the Tribunal inadvertently missed considering additional grounds raised by the assessee, which could impact the decision. Hence, the Tribunal recalled the order for adjudicating the additional grounds raised by the assessee.

3. The Tribunal found that in M.A. 84/Hyd/2019 for A.Y 2014-15, the specific ground raised by the assessee regarding ALP adjustment towards interest on outstanding receivables was not adjudicated. The Tribunal decided to recall the order for the adjudication of this specific ground, similar to the additional grounds raised by the assessee for A.Y 2013-14.

4. Consequently, both the miscellaneous applications filed by the assessee were allowed, and the Tribunal pronounced the order in the Open Court on 20th September 2019. The Tribunal's decision to recall the order for adjudicating specific grounds raised by the assessee aimed to ensure a fair and comprehensive consideration of all relevant issues in the appeals for the respective assessment years.

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