INCOME TAX ACT, 1961

Section 254

Appeal (Tribunal) - Rectification of Tribunal's order - Disallowance made under section 40(a)(ia) -

By virtue of this Miscellaneous Application, assessee sought for to recall the order of this Tribunal on one particular issue alone with regard to upholding the disallowance made under section 40(a)(ia) on year end provision for expenses on the ground that while rendering the decision, this Tribunal had not followed the decision rendered by this Tribunal in case of Mahindra and Mahindra Ltd. ITA No.7382/Mum/2017 dt. 19-6-2020 : 2020 TaxPub(DT) 2583 (Mum-Trib) for the very same issue which was decided in favour of the assessee. Assessee pointed out that this decision was indeed relied on before the Tribunal and was also part of the record, which was not considered by this Tribunal while rendering the decision. Held: Tribunal while disposing off the appeal for assessment year 2009-10 [2020 TaxPub(DT) 3947 (Mum-Trib)] had rejected the contentions of assessee and upheld the disallowance made under section 40(a)(ia). But a contrary view was already taken by this Tribunal in the case of Mahindra and Mahindra [ITA No.7382/Mum/2017 dt. 19-6-2020 : 2020 TaxPub(DT) 2583 (Mum-Trib)]. Non-following of the said order constitutes mistake apparent on record within the meaning of section 254(2) and AO was directed to delete the disallowance under section 40(a)(ia).

Followed:Tata Sky Ltd. v. Asstt. CIT 2020 TaxPub(DT) 3947 (Mum-Trib) and Mahindra & Mahindra Ltd. v. Dy. CIT ITA No.7382/Mum/2017 dt. 19-6-2020 : 2020 TaxPub(DT) 2583 (Mum-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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