ITAT Recalls Order and Restores Appeal as Assessee Intended Only Partial Withdrawal Under MAP Scheme

ITAT Recalls Order and Restores Appeal as Assessee Intended Only Partial Withdrawal Under MAP Scheme

Issue

Facts

• Appeal Filed: The assessee filed an appeal before the Income Tax Appellate Tribunal (ITAT) for Assessment Year 2016-17.
• Order Passed: The Tribunal passed an order dismissing the entire appeal, recording that the assessee had applied to withdraw the entire appeal.
• Miscellaneous Application: The assessee filed a Miscellaneous Application under Section 254(2) seeking recall of the dismissal order.
• Assessee’s Clarification: The assessee clarified that it never intended to withdraw the entire appeal, but sought only to withdraw specific grounds covered by resolutions under the Mutual Agreement Procedure (MAP), while intending to contest the remaining ground on merits.
• Prayer: The assessee prayed for the recall of the earlier order and restoration of the appeal for a fresh hearing on the un-withdrawn ground.

Decision

• Recalling Earlier Order: In favour of Assessee. The Tribunal recalled its earlier order dismissing the appeal as fully withdrawn. [Para 3]
• Restoration of Appeal: In favour of Assessee. The appeal was restored to the file of the Tribunal for a fresh hearing on the merits of the remaining ground not covered under the MAP resolution. [Para 3]

Key Takeaways

1. Rectification of Procedural Inadvertence: The Tribunal possesses inherent powers under Section 254(2) to rectify mistakes apparent from the record, including mistaken or inadvertent recordings of complete withdrawal of an appeal.
2. Co-existence of MAP and Tribunal Appeal: Resolution under the Mutual Agreement Procedure (MAP) applies strictly to the issues resolved thereunder; the taxpayer retains full statutory rights to litigate un-resolved or distinct grounds before the Appellate Tribunal.