Revenue's Application Dismissed by ITAT for Compliance with Section 153C

The ITAT dismissed the Revenue's Miscellaneous Application, finding no error in providing the Revenue with sufficient opportunity or in complying with Section 153C provisions. The ITAT emphasized that failure to address the issue on merit does not amount to an error in its order. The application was rejected, and the decision was announced in open court on 11/10/2019.

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Issues Involved:
1. Whether the ITAT provided sufficient opportunity to the Revenue regarding the additional ground of appeal.
2. Whether the proceedings under Section 153C of the Act were initiated after complying with the provisions of law and recording the necessary satisfaction.

Detailed Analysis:

1. Sufficient Opportunity to the Revenue:
The Revenue contended that the ITAT admitted an additional ground of appeal from the assessee without providing sufficient opportunity for the Revenue to respond. The additional ground was filed on 04.06.2019, and the hearing was held on 11.06.2019, providing only seven days for the Revenue to prepare. The ITAT noted that the departmental representative was present on the dates of filing and hearing of the additional ground and did not raise any objections or seek an adjournment. The ITAT concluded that there was consent from the departmental representative for the hearing and no mistake apparent from the record regarding the opportunity provided to the Revenue.

2. Compliance with Section 153C Provisions:
The Revenue argued that the proceedings under Section 153C were initiated after recording the required satisfaction, which was also admitted by the assessee in statements. The ITAT reviewed the materials on record, including information obtained under RTI, and noted the CBDT circular No. 24/2015, which mandates recording satisfaction even if the AO of the searched person and the other person is the same. The ITAT held that the Revenue did not point out any specific defect in its order and that the scope of rectification under Section 254(2) is limited to mistakes apparent from the record. The ITAT concluded that its conscious decision did not suffer from any infirmity apparent from the record.

Conclusion:
The ITAT dismissed the Miscellaneous Application filed by the Revenue, holding that there was no mistake apparent from the record in its order regarding the opportunity provided to the Revenue and the compliance with the provisions of Section 153C. The ITAT emphasized that non-adjudication of the issue on merit does not constitute a mistake in its order. The Miscellaneous Application of the Revenue was dismissed, and the order was pronounced in open court on 11/10/2019.

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