ITAT revisits taxability of mesne profits, acknowledges appellant's arguments, directs case for reconsideration.

The ITAT recalled its order regarding the taxability of mesne profits claimed as capital profit by the appellant, finding a mistake apparent from the record. The ITAT acknowledged the appellant's arguments supported by a Special Bench decision and a Bombay High Court decision, directing the case for further consideration. As a result, the miscellaneous applications filed by the assessee were allowed, and the order was pronounced in open court on 01.06.2021.

---

---

Issues: Rectification of mistake in the order of ITAT regarding the taxability of mesne profits claimed as capital profit by the assessee.

Analysis:
The appellant sought rectification of a mistake in the ITAT order regarding the taxability of mesne profits claimed as capital profit. The appellant argued that the issue in appeal was mesne profits, contending it was capital profit and hence not taxable, supported by a Special Bench decision of ITAT and a Bombay High Court decision. The appellant claimed that the ITAT did not adequately address the details submitted and failed to consider the previous decisions. On the other hand, the Departmental Representative argued against the review, stating it was impermissible. The ITAT acknowledged the appellant's contentions, noting that the CIT(A) had not followed the larger special bench decision and the Bombay High Court decision favoring the assessee. The ITAT found a mistake apparent from the record in its order and decided to recall the order for further consideration, directing the case to be fixed in the normal course. Consequently, the miscellaneous applications filed by the assessee were allowed, and the order was pronounced in open court on 01.06.2021.

---