ACIT 26 (2), MUMBAI V. MAHESH VASANT RAUT, MUMBAI

MA 101/MUM/2021

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2091 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 22-06-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 07-04-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SMITA VERMA
• Keywords: Bogus purchase
• Section: 201

Judgement Text

, , . ,$ % IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI M.BALAGANESH, ACCOUNTANT MEMBER M.A.NO.101/MUM/2021 (ARISING OUT OF ITA NO. 7051/MUM/2018,A.Y.2010-11) DY. COMMISSIONER OF INCOME TAX 26(1), ROOM NO.623, 6 TH FLOOR, KAUTALIYA BHAVAN, G-BLOCK, BKC, MUMBAI 400 051 ...... APPLICANT VS. SHRI MAHESH VASANT RAUT, 6B/104, CHANDIVALI SUN VIEW CHS LTD., MHADA COLONY, CHANDIVALI, ANDHERI (E), MUMBAI 400 072. ..... RESPONDE NT APPLICANT BY : MS.SMITA VERMA RESPONDENT BY : NONE '( / DATE OF HEARING : 18/06/2021 *+, '( / DATE OF PRONOUNCEMENT : 22/06/2021 / ORDER PER VIKAS AWASTHY, JM : THIS MISCELLANEOUS APPLICATION HAS BEEN FILED BY THE REVENUE FOR RECALLING THE ORDER OF TRIBUNAL IN ITA NO.7051/MUM /2018 FOR ASSESSMENT YEAR 2010-11 DECIDED ON 13/03/2020. 2 M.A.NO.101/MUM/2021 2. MS. SMITA VERMA REPRESENTING THE DEPARTMENT SUBM ITTED THAT THE TRIBUNAL VIDE A CONSOLIDATED ORDER DATED 13/03/2020 DECIDED CROSS APPEALS OF THE ASSESSEE AND REVENUE IN ITA NO.6514/MUM/2018 AND 7052/MUM/2018 RESPECTIVELY FOR ASSESSMENT YEAR 2011-12 AND THE AP PEAL OF THE REVENUE IN ITA NO.7051/MUM/2018 FOR ASSESSMENT YEAR 2010-11. ALL THESE APPEALS WERE ON COMMON ISSUE I.E. AGAINST DISALLOWANCE OF BOGUS PUR CHASES. THE ASSESSING OFFICER IN BOTH IMPUGNED ASSESSMENT YEARS I.E. ASSE SSMENT YEAR 2010-11 AND 2011-12 DISALLOWED 100% OF BOGUS PURCHASES. THE CIT(A) RESTRICTED THE ADDITION TO 25%. THE ASSESSEE FILED APPEAL ONLY AG AINST THE ORDER OF CIT(A) IN ASSESSMENT YEAR 2011-12. THE TRIBUNAL GRANTED RE LIEF TO THE ASSESSEE BY FURTHER REDUCING DISALLOWANCE TO 12.5% AND DISMIS SED APPEAL OF THE REVENUE FOR ASSESSMENT YEAR 2011-12. THE TRIBUNAL WHILE AD JUDICATING APPEAL OF REVENUE FOR ASSESSMENT YEAR 2010-11 HAS REDUCED DISALLOWANCE ON BOGUS PURCHASES TO 12.5%, WHEREAS, THE DISALLOWANCE OF 25 % MADE BY THE CIT(A) WAS ACCEPTED BY THE ASSESSEE AND NO FURTHER APPEAL WAS FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) FOR ASSESSMENT YEAR 201 0-11. THE TRIBUNAL HAS ERRONEOUSLY GRANTED FURTHER RELIEF TO THE ASSESSEE IN APPEAL BY THE REVENUE. THE LD.DEPARTMENTAL REPRESENTATIVE PRAYED FOR RECAL LING THE ORDER IN ITA NO.7051/MUM/2018 FOR ASSESSMENT YEAR 2010-11. 3. WE HAVE HEARD THE SUBMISSIONS MADE BY LD.DEPARTM ENTAL REPRESENTATIVE AND HAVE EXAMINED THE DOCUMENTS ON R ECORD. IT APPEARS THAT THE RATIO OF FINDINGS GIVEN WHILE ADJUDICATING THE CROSS APPEALS FOR ASSESSMENT YEAR 2011-12 WERE APPLIED TO APPEAL OF THE REVENUE IN ITA NO.7051/MUM/2018 FOR ASSESSMENT YEAR 2010-11. WHER EAS IN ASSESSMENT YEAR 2010-11 THERE WAS NO APPEAL BY THE ASSESSEE AN D OSTENSIBLY THE ADDITION ON BOGUS PURCHASES BY THE CIT(A) AT 25% WERE ACCEP TED BY THE ASSESSEE. 3 M.A.NO.101/MUM/2021 THEREFORE, NO FURTHER RELIEF OUGHT TO HAVE BEEN GRA NTED TO THE ASSESSEE IN AN APPEAL BY THE REVENUE. AN ERROR HAS CREPT IN THE O RDER OF TRIBUNAL WHILE ADJUDICATING THE APPEAL OF REVENUE IN ITA NO.7051 /MUM/2018. THE SAID ERROR NEEDS TO BE RECTIFIED. CONSEQUENTLY, THE ORDER OF TRIBUNAL IN ITA NO.7051/MUM/2018 IS RECALLED AND THE APPEAL IS DIRE CTED TO BE LISTED FOR HEARING IN DUE COURSE BEFORE REGULAR BENCH AFTER INTIMATING BOTH SIDES. 4. IN THE RESULT, MISCELLANEOUS APPLICATION FILED B Y REVENUE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON TUESDAY THE 2 2 ND DAY OF JUNE, 2021. SD/- SD/- ( M.BALAGANESH ) (VIKAS AWASTHY) $ / ACCOUNTANT MEMBER / JUDICIAL MEMBER / MUMBAI, -/ DATED: 22/06/2021 VM , SR. PS (O/S) COPY OF THE ORDER FORWARDED TO : 1. . / THE APPELLANT , 2. /( / THE RESPONDENT. 3. 0( ( )/ THE CIT(A)- 4. 0( CIT 5. 3/( , . . . , / DR, ITAT, MUMBAI 6. 4567 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI