Padmaja Gavini, Hyderabad, Hyderabad vs Assessee

By this miscellaneous petition, the assessee has pointed out that the decision of the Hon'ble Tribunal that fixtures and fittings are personal assets not falling u/s 2(14) of the Act may or may not be correct in law. But the later part of order of the Tribunal in ITA No.705/Hyd/2014 giving contradictory direction while upholding the direction of the Commissioner to bring to tax such sale proceeds of fixtures and fittings under the head 'income from other sources' is erroneous and is a mistake apparent from record. It was submitted that one of the findings of the Tribunal in its order in ITA No.705/Hyd/2014 can be correct. If it to be held that fixtures and fittings which are personal asset does not fall u/s 2(14) of the Act, then for the very same reason it cannot be taxed even under the head 'income from other sources'.

2. It is submitted by this petition that the above mistake in the order of the Tribunal apart from being contradictory is also a mistake apparent from record as there cannot be two different Page 1 of 2 MA No 31 of 2015 Smt Padmaja Gavini Hyderabad

findings for the same item for taxing it under two different heads of income. It was stated that once it is personal asset to be falling outside the purview of section 2(14) of the Act, it cannot for the same reason be taxable even under the head 'income from other sources'.

3. Hence the petitioner prayed that the Tribunal may recall its order in entirety and hear the same on merits. Alternatively, it was prayed that the Tribunal may recall its order in upholding the direction of the CIT to bring to tax the sale proceeds of fixtures and fittings under the head 'income from other sources' and consequently hold that the same is not exgible to tax under the head 'income from other sources' as the said fixtures and fittings are personal in nature and pass such other order as the Tribunal deems fit and proper in the interest of justice.

4. We find that an error has crept in the order of the Tribunal and there is a mistake apparent on record as pointed out by the petitioner. In these circumstances, we recall the order of the Tribunal and direct the registry to repost the appeal and inform the date of posting to both the parties.

5. In the result miscellaneous petition is allowed. Order pronounced in the Open Court on 13th May, 2015.

Sd/- Sd/- (P.M. Jagtap) (Asha Vijayaraghavan) Accountant Member Judicial Member Hyderabad, dated 13th May, 2015. Vnodan/sps Copy to:

1. Smt. Padmaja Gavini, C/o K. Vasantkumar & AV Raghuram, Advocates, 610, 6th Floor, Babukhan Estate, Basheerbagh, Hyderabad

2. Income Tax Officer Ward 8(1) IT Towers, AC Guards, Hyderabad

3. The CIT-II Hyderabad

4. The ACIT Range 8 Hyderabad

5. The DR, ITAT, Hyderabad

6. Guard File

By Order Page 2 of 2