2026 (3) TMI 558 - AT - Income Tax

Infructuous appeal: rectification granting the contested relief renders appellate proceedings redundant and leads to dismissal.

Whether an appeal is rendered infructuous where the appellate authority corrects an inadvertent reference and disposes of the appeal against the correct ... Appeal before the Tribunal arose out of the order passed by the Additional / JCIT(A) under section 250 - appellate authority recorded that the assessee had opted for settlement of the dispute under the Direct Tax Vivad se Vishwas Act, 2020 and accordingly dismissed the appeal as withdrawn - appeal before the Tribunal is rendered infructuous by the rectification order passed by the appellate authority correcting an inadvertent reference - Whether the appeal before the Tribunal survives after the appellate authority rectified its order to dispose of the correct appeal? HELD THAT: - The Tribunal found that the impugned appellate order contained an inadvertent reference to a different proceeding and that the assessee sought rectification. The appellate authority, after hearing, passed a rectification order disposing of the appeal against the correct order, thereby granting the relief sought by the assessee. As the grievance originally raised in the Tribunal appeal was addressed by the rectification, there remained no live controversy for adjudication. [Paras 4, 5, 6] The appeal has become infructuous and is dismissed as such. Final Conclusion: The Tribunal dismissed the appeal as infructuous because the appellate authority's rectification order had corrected the error and disposed of the appeal against the correct order, leaving no live issue for determination. Issues: (i) Whether the appeal before the Tribunal is rendered infructuous by the rectification order passed by the appellate authority correcting an inadvertent reference and disposing of the appeal against the correct order.Analysis: The Tribunal examined the factual sequence: the appeal before it challenged the appellate order dated 23.10.2025 which contained an inadvertent reference to a different proceeding; the assessee filed a rectification application; following opportunity of hearing the appellate authority passed a rectification order dated 02.02.2026 disposing of the appeal against the correct order. The Tribunal found that the relief sought by the assessee in the present appeal had been granted by the rectification order and that there remained no substantive grievance requiring adjudication by the Tribunal.Conclusion: The appeal is dismissed as infructuous because the rectification order dated 02.02.2026 by the appellate authority has removed the grievance raised before the Tribunal.