INCOME TAX ACT, 1961

Section 254

Appeal (Tribunal) - Rectification under section 254 - Part of income which was not accounted on the basis of accrual system of accounting had been offered to tax in the very same assessment year -

Assessee filed the miscellaneous petition under section 254(2) pleading for rectification of certain apparent errors in order of Tribunal. It was plea of assessee that the sum added by AO on the basis of mercantile system of accounting was offered by assessee to tax in a later assessment year as income and therefore, addition made would amount to taxation of the same income twice. In this miscellaneous petition, though the assessee has raised several issues, but at the time of hearing, assessee submitted that while giving effect to the order of Tribunal by AO, assessee's claim that part of income which was not accounted on the basis of accrual system of accounting had been offered to tax in the very same assessment year. Since in order of Tribunal reference was made only to a later assessment year, AO had not accepted the stand of assessee who accordingly pleaded for suitable modification in order of Tribunal. Held: After considering the rival submissions, the words 'either in this year or' should be added to the order of Tribunal, after the words 'how the income offered' so that the line reads as 'how the income offered either in this year or in a later assessment year was income which was'. Absence of insertion of the said words in the order of Tribunal would give rise to an interpretation, which might not be in tune with the intent which was that, the same income cannot be taxed twice. Accordingly, miscellaneous petition filed by assessee was allowed.

Followed:M/s. Optum Health and Technology (India) (P) Ltd. v. The ITO 2019 TaxPub(DT) 2948 (Bang-Trib)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2012-13

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