DRG Analytics And Insights Private Limited Vs ACIT (ITAT Bangalore)
Summary: The ITAT Bangalore allowed DRG Analytics And Insights Private Limited’s miscellaneous application for AY 2020-21 after finding that Ground No. 3.5 had remained unadjudicated in its order dated 29 April 2026 in IT(TP)A No. 1431/Bang/2024. The ground concerned an adjustment towards interest on delayed receivables, which the assessee contested on the basis that it was a debt-free company and had not availed any interest-bearing debt. The assessee submitted that this specific ground had been raised and argued, but the Tribunal had omitted to decide it while adjudicating Ground Nos. 3 to 3.4 and Ground No. 4.
The Revenue opposed recall, maintaining that no apparent mistake existed. On examining its earlier order, the Tribunal confirmed that Ground No. 3.5 had not been specifically adjudicated and held that the omission warranted rectification under section 254(2). It recalled the order solely to that extent and restored the ground for fresh adjudication after providing both parties a reasonable opportunity of hearing. Findings on all other grounds remained undisturbed. The limited hearing was fixed for 22 September 2026, and separate intimation was dispensed with because the date had been announced in open court. The order did not decide the merits of the assessee’s debt-free-company contention or delete the receivables adjustment.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This Miscellaneous Application filed by the assessee under section 254(2) of the Income-tax Act, 1961 (“the Act”) is directed against the order dated 29.04.2026 passed by the Tribunal in IT(TP)A No. 1431/Bang/2024 for Assessment Year 2020-21.
2. The assessee submitted that Ground No. 3.5 raised in the appeal, relating to the adjustment on account of interest on delayed receivables on the ground that the assessee was a debt-free company and that no interest-bearing debt had been availed by the assessee, was specifically raised and argued before the Tribunal. However, while adjudicating Ground Nos. 3 to 3.4 and Ground No. 4, the Tribunal inadvertently omitted to adjudicate Ground No. 3.5. Accordingly, the ld. AR requested for recalling the order limited to the extent of ground No. 3.5 within the provisions of section 254(2) of the Act.
3. On the other hand, the learned DR submitted that there is no apparent mistake in the order of the ITAT which requires recalling the impugned ground of appeal.
4. We have considered the rival submissions of both the parties and perused the materials available on record. On examination of the order dated 29.04.2026, we find that Ground No. 3.5 raised by the assessee has not been specifically adjudicated. Since the said ground was a specific ground raised by the assessee and requires adjudication, there is an apparent omission in the order which warrants rectification under section 254(2) of the Act. Accordingly, the Miscellaneous Application filed by the assessee is allowed. The order of the Tribunal dated 29.04.2026 in IT(TP)A No. 1431/Bang/2024 is recalled to the limited extent of Ground No. 3.5 only. Ground No. 3.5 of the assessee’s appeal is restored to the file of the Tribunal for fresh adjudication in accordance with law, after affording reasonable opportunity of being heard to both parties. The findings already recorded by the Tribunal in respect of the other grounds shall remain undisturbed. The appeal is accordingly fixed for hearing on 22.09.2026 for the limited purpose of adjudication of Ground No. 3.5. Since the next date of hearing, i.e., 22.09.2026, has been announced in the open court, the requirement of separately intimating the parties about the said date of hearing is hereby dispensed with. Accordingly, the Miscellaneous Application filed by the assessee is allowed in the above terms.
5. In the result, the Miscellaneous Application filed by the assessee is allowed in the above terms.
Order pronounced in the open court on 25th August, 2026
