Tribunal rectifies error in deduction order for assessment year 2000-01

The Tribunal allowed both the Assessee's and Revenue's applications for rectification of an apparent error in the order regarding the deduction under section 80-IA for the assessment year 2000-01. The Tribunal acknowledged the mistake in discussing a different ground related to sales tax benefit instead of adjudicating the claim for deduction on profits from a specific division. The order was recalled for readjudication on merit, emphasizing that rectification can only be made for obvious mistakes apparent from the record. The appeal was restored for a fresh hearing following the Tribunal's decision on 07/12/2020.

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Issues:
Rectification of apparent error in the order regarding deduction u/s.80-IA for AY 2000-01.

Analysis:
The judgment involved cross miscellaneous applications by the Assessee and Revenue pointing out an apparent error in the Tribunal's order for AY 2000-01. The Assessee had claimed deduction u/s.80-IA amounting to a specific sum on profits from Trikampura Division, which was disallowed by the Assessing Officer. The Tribunal initially confirmed this disallowance, but the Assessee filed a miscellaneous application which was allowed, leading to a partial allowance of the appeal. The Tribunal observed that the issue was already adjudicated in favor of the Assessee by a Co-ordinate Bench and directed the Assessing Officer to allow the claim in question.

Further, the Assessee pointed out that the Tribunal inadvertently discussed and allowed a different ground related to sales tax benefit instead of adjudicating the claim for deduction u/s.80-IA on profits from Trikampura Division. Both parties agreed that the Tribunal's reference to a previous decision was not related to the issue in dispute but to a different matter, indicating an apparent error in the order. The Tribunal acknowledged this error and allowed both applications for rectification, recalling the order for readjudication on merit.

The Tribunal clarified that rectification under section 254(2) of the Income Tax Act can only be done for obvious and patent mistakes apparent from the record. Since the Tribunal's reliance was on an issue unrelated to the deduction u/s.80-IA, it was deemed an apparent error requiring rectification. Therefore, the Tribunal allowed both the Assessee's and Revenue's applications, directing the restoration of the appeal for fresh hearing. The judgment was pronounced on 07/12/2020 by the Tribunal.

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