M/S. MITTAL CONSTRUCTION UNIT,MUZAFFARNAGAR V. DCIT CIRCLE-1, MUZAFFARNAGAR

MA 188/DEL/2025

AI Insights

The case involves M/s. Mittal Construction Unit, the applicant, who filed a miscellaneous application against the order of the Tribunal concerning the assessment year 2017-18. The original dispute was about the estimation of gross profit on alleged bogus purchases, where the CIT (A) had estimated the gross profit at 12.5% against the 10.46% declared by the assessee. The ITAT had further reduced this to 7%. The assessee's application sought rectification of what they perceived as a mistake in the Tribunal's order, specifically regarding the estimation base. The Tribunal clarified that the 7% was to be applied to the reconciled gross receipts, not as a new gross profit estimation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780245 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 26 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-10-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2013-2014
• Appeal Filed On: 10-06-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJESH MAHAJAN
• Assessee Lawyers: ANKIT GUPTA
• Keywords: Bogus purchase; Rectification of order; Bogus
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES ‘E’ : NEW DELHI. BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER and SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER MA No.188/DEL/2025 (in CO No.91/DEL/2017) (Assessment Year: 2013-14) M/s. Mittal Construction Unit, vs. DCIT, Circle 1, Near Town Hall, Muzaffarnagar. Muzaffarnagar. (PAN : AABFM3190L) (APPLICANT) (RESPONDENT) APPLICANT/ASSESSEE BY : Shri Ankit Gupta, Advocate REVENUE BY : Shri Rajesh Mahajan, Sr. DR Date of Hearing : 29.08.2025 Date of Order : 06.10.2025 O R D E R PER S. RIFAUR RAHMAN, AM : 1. This misc. application is filed by the Applicant/Assessee against the order of the Tribunal in CO No.91/Del/2023 dated 21.04.2025 for Assessment Year 2017-18 for rectification of mistake of the impugned order dated 21.04.2025. 2. This misc. application is filed by the assessee with a submission that the assessment under this case is completed under section 143(3) of the Act and disallowance was made on the issue of bogus purchase. In appeal before the ld. CIT (A), ld. CIT (A) partly allowed the appeal of the assessee and upheld the addition on account of estimation of gross profit @ 12.5% against 10.46% declared by the assessee. Printed from counselvise.com 2 MA No.188/Del/2025 However, in appeal before ITAT, the same was challenged and the Bench has considered the facts on record and adjudicated as under ;- “Therefore, we are inclined to direct the AO to estimate the income of the assessee @ 7% of the reconciled gross receipt for the year under consideration. Accordingly, the ground no.1 raised by the department is dismissed and ground no 3 raised by the assessee in CO is partly allowed.” 3. Against the above direction, the assessee filed misc. application with the plea that the Bench has estimated the gross profit @ 7% which is below the declared gross profit of 10.46% for the year under consideration which is mistake apparent from record and the clarification required from the Bench on the above captioned issue. 4. Considered the submissions of both the parties. We observe that in the findings given as stated above, the direction was given to the AO to estimate the income of the assessee @ 7% of the reconciled gross receipt for the year under consideration; it is not on estimation of gross profit. The direction was very clear that AO has to reconcile the gross receipts for the year and on the abovesaid gross receipt, he has to estimate the net profit @ 7%. Since assessee has already declared net profit of 5.09%, the direction was only on net profit not on gross profit. Accordingly, the misc. application filed by the assessee is disposed off as per the clarification sought. Order pronounced in the open court on this 6th day of October, 2025. Sd/- sd/- (SATBEER SINGH GODARA) (S.RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 06.10.2025 TS Printed from counselvise.com 3 MA No.188/Del/2025 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals). 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "