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| The Tax Publishers2020 TaxPub(DT) 4528 (Mum-Trib) INCOME TAX ACT, 1961
Section 254 Section 36(1)(iii)
Where assessee filed rectification application under section 254 against order of Tribunal upholding the disallowance of interest expenditure under section 36(1)(iii) and contended that only a part of sum could be disallowed out of total interest expenditure that was claimed by it as a deduction during the year under consideration, it was held that assessee in the guise of the instant application was, in fact, seeking a review of the order that was passed by the Tribunal while disposing of the appeal, and same was beyond the powers vested with the Tribunal under sub-section (2) of section 254.
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Appeal (Tribunal) - Rectification under section 254 - Mistake apparent from record -
Assessee assailed order of the Tribunal upholding the disallowance of interest expenditure under section 36(1)(iii). Assessee contended that Tribunal's order suffered from a mistake, which being apparent from record rendered the same amenable for rectification under section 254(2). Assessee contended that only a part of sum could be disallowed out of total interest expenditure that was claimed by it as a deduction during the year under consideration. Tribunal while upholding the disallowance under section 36(1)(iii) took a conscious view in the backdrop of the facts available on record. Considering the claim raised by the assessee, contention advanced by Revenue's counsel was justified as assessee in the guise of the instant application was, in fact, seeking a review of the order that was passed by the Tribunal while disposing of the appeal. Since it was beyond the powers vested with the Tribunal under sub-section (2) of section 254, instant application was dismissed.
Distinguished:CIT (Large Tax Payer Unit) v. Reliance Industries Ltd. [Civil Appeal No. 10 of 2019, dated 2-1-2019] : 2019 TaxPub(DT) 659 (SC).
REFERRED :
FAVOUR : Against the assessee.
A.Y. :
IN THE ITAT, MUMBAI BENCH
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