INCOME TAX ACT, 1961

Section 254

Appeal (Tribunal) - Rectification of mistake - Tribunal directed AO to determine 12 months LIBOR + 300 basis point -

Assessee had filed this miscellaneous application submitting that there were mistakes apparent from record in the Order passed by Tribunal. The mistake pointed out by assessee related to the transfer pricing adjustment made in respect of interest on loan advanced by the assessee. DRP had directed AO to compute interest at LIBOR rate + 500 basis point. Tribunal directed the AO to determine 12 months LIBOR + 300 basis point. It was the plea of assessee that assessee had sought for LIBOR rate + 150 basis point and hence the order passed by the ITAT in directing AO to adopt 12 months LIBOR + 300 basis point is mistake apparent from record.Held: Tribunal had taken a view on the issue, i.e., as against the DRP's direction to adopt interest rate of LIBOR + 500 basis point, Tribunal had directed AO to adopt 12 months LIBOR + 300 basis point. Non-acceptance of the plea of the assessee did not amount to a mistake apparent from record. There should not be any dispute that the scope of power of rectification of mistake given to the Tribunal under section 254(2) is limited and it is well settled proposition of law that Tribunal is not entitled to review its order under the garb of rectification of mistake apparent from record. Since Tribunal had taken a view on this matter, the same did not constitute mistake apparent from record within the meaning of section 254(2) and accordingly, plea of assessee was rejected.

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

INCOME TAX ACT, 1961

Section 254

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