INCOME TAX ACT, 1961

Section 254

Appeal (Tribunal) - Rectification of Tribunal's order - Double disallowance of lease rent -

This miscellaneous petition was filed by assessee contending that there was certain apparent mistakes in the Tribunal order which should be rectified under section 254(2). Assessee submitted that in order of Tribunal, it was held that there was no double disallowance made by AO as claimed by assessee and this observation of Tribunal was on this basis that as per computation of income available on paper book filed by the assessee at the time of hearing of appeal, although the assessee disallowed the amount of lease rent while computing business income but it was claimed as deduction while computing income from house property. Held: Assessee arrived at business income after making disallowance of lease rent and although assessee claimed the deduction of lease rent while computing 'Income from House Property' but it resulted in net loss under the head 'Income from house property' and net taxable income is worked out accordingly. AO started the computation by taking the figure of income which was after making disallowance of Lease Rent and again disallowed Lease Rent and therefore, it is a clear case of double disallowance of lease rent because the loss was worked out under the head 'Income from house property' and consequent thereto lesser taxable income worked out by assessee was not given effect to by AO. There was apparent mistake in the order of Tribunal holding that there was no double disallowance of lease rent and needed to be rectified.

Relied:SNC Power Corporation (P) Ltd. v. Dy. CIT [ITA No. 65/Bang/2013, dt. 20-2-2020].

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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