Tribunal allows rectification application for reconsideration of order, citing overlooked decisions.

The Tribunal allowed the rectification application seeking reconsideration of a previous order as specific decisions were not considered during the appeal. Despite the Departmental Representative's argument that no mistake was apparent, the Tribunal found that the decisions cited by the assessee's counsel were indeed not considered, constituting a mistake. The order was recalled for further examination of the cited decisions, and the case was directed to be heard before a regular Bench. The Miscellaneous Application was allowed, with the order pronounced on 04/12/2020.

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Issues involved:
Rectification of order passed by ITAT Mumbai regarding consideration of specific decisions during the appeal.

Analysis:
The applicant sought rectification of the order dated 23.05.2019 passed by the ITAT 'F' Bench, Mumbai, as specific decisions were not considered during the appeal. The counsel for the assessee heavily relied on the decision in Lotus Investments Ltd. and Elde Electricals Agencies Pvt. Ltd. during the hearing, which were not taken into consideration while disposing of the appeal. The counsel cited Honda Siel Power Products Ltd. to support the argument that adjudication without considering cited decisions allows rectification under section 254(2) of the Income Tax Act, 1961.

The Departmental Representative argued that since the appeal was disposed of on merit with a speaking order and no apparent mistake was found, the rectification application should be dismissed. However, upon hearing both sides and examining the materials on record, it was observed that the decisions cited by the counsel for the assessee were indeed not considered while framing the order. This failure to consider the cited decisions was deemed a mistake apparent from the record, in line with the judgment of the Hon'ble Supreme Court in Honda Siel Power Products Ltd.

Consequently, the Tribunal recalled the order dated 23.05.2019 to the limited extent of examining the application of the decisions in Elde Electricals Agencies Pvt. Ltd. and Lotus India Ltd. to the present case. The case was directed to be fixed for hearing before a regular Bench. The Miscellaneous Application was allowed based on the above analysis, with the order pronounced in the open Court on 04/12/2020.

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