The Tax Publishers2020 TaxPub(DT) 5510 (Ahd-Trib)

INCOME TAX ACT, 1961

Section 254 Section 56(2)(vii)(b)

Where assessee sought rectification of mistake in order of Tribunal, by contending that amended provision of section 56(2)(vii)(b) was not applicable to him, considering that Tribunal did not find any merit in the plea of the assessee for its inapplicability of section 56(2)(vii)(b)(ii) to the financial year 2013-14 concerning assessment year 2014-15, as Tribunal held that aforesaid provision is applicable from assessment year 2014-15 and would thus apply to transactions concerning financial year 2013-14 as intended by the legislature, thus, error in conclusion drawn by the Tribunal, as alleged, could not fall within the sweep of expression 'apparent mistake' governing section 254(2).

Appeal (Tribunal) - Rectification of mistake apparent from record - Tribunal dealt with the ground raised in the light of facts placed before it -

Assessee filed Miscellaneous Application on ground that Tribunal committed error in rejecting ground of appeal of assessee by holding that purchase of land fell in financial year 2013-14 to which amended provision of section 56(2)(vii)(b) was applicable. Assessee contended that the purchase transactions of the immovable property were carried out and completed prior to effective date of amendment in section 56(2)(vii)(b) and therefore, the land purchase transactions in question were not hit by amendment carried out in section 56(2)(vii)(b). Held: Tribunal held that plea of the assessee that the agricultural land was rural land, was raised for the first time before Tribunal. In the absence of any findings of the lower authorities on factual aspects, Tribunal declined to entertain the aforesaid new plea. Tribunal also did not find any merit in the plea of the assessee for its inapplicability of section 56(2)(vii)(b)(ii) to the financial year 2013-14 concerning assessment year 2014-15. The aforesaid provision is applicable from assessment year 2014-15 and would thus apply to transactions concerning financial year 2013-14 as intended by the legislature. Apparently, Tribunal dealt with the ground raised in the light of facts placed before it. Thus, the error in conclusion drawn by the Tribunal, if any, as alleged, could not fall within the sweep of expression apparent mistake governing section 254(2). The prayer of rectification was thus not sustainable.

REFERRED : National Thermal Power Company Ltd. v. CIT (1998) 229 ITR 383 (SC) : 1998 TaxPub(DT) 342 (SC) and Vishnubhai Mafatbhai Desai v. ITO 2019 TaxPub(DT) 6235 (Ahd-Trib).

FAVOUR : Against the assessee.

A.Y. : 2014-15



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