2021 (2) TMI 1403 - AT - Income Tax

Earlier order recalled for AY 2011-12; rectification allowed due to mistake apparent; s.80P(2)(d) deduction reconsidered

ITAT recalled its earlier order for AY 2011-12 and allowed the assessee's rectification application, finding an inadvertent failure to apply the ratio of ... Rectification application - denial of Deduction u/s 80P(2)(d) - interest income from cooperative banks - HELD THAT:- The applicant stated that Tribunal has failed to apply the ratio of the Hon’ble Supreme Court and the Jurisdictional High Court and same is amount to mistake apparent on record. We find that inadvertently judgment cited by the applicant was not considered and we find same inadvertent mistake apparent on record. In view of the above, we recall order for Assessment Year 2011-12. In the result, the Miscellaneous Application filed by the Assessee is allowed. Appeal in ITA No. 2100/Ahd/2014 (AY 2011-12) originally dismissed; grounds 3-5 challenged disallowance under section 80P(2)(d) of Rs.72,39,179 relating to interest income from cooperative banks. Earlier bench had followed a prior ITAT decision and the Karnataka High Court decision in PCIT v. Totgars Co-operative Sale Society, holding that deduction u/s 80P(2)(d) 'is not allowable to the appellant.' Applicant contended the Tribunal failed to apply the ratio of the Supreme Court and the jurisdictional High Court, amounting to a 'mistake apparent on record.' Tribunal found that a cited judgment was inadvertently not considered and accepted that this omission was a mistake apparent on record. Consequently the Tribunal recalled its order dated 10.09.2018 in ITA No. 2100/Ahd/2014 for AY 2011-12 and allowed the Miscellaneous Application, thereby restoring the matter for fresh consideration.