ITO 26(1)(4), MUMBAI V. JANAK GULABCHAND KHANA, THANE

MA 105/MUM/2021

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8681 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 14 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-07-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 09-04-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SANJAY J SETHI
• Keywords: Bogus purchase; Rectification of order

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC MUMBAI BEFORE SHRI SHAMIM YAHYA (ACCOUNTANTMEMBER) MA NO. 105/MUM/2021 (ITA NO. 7044/MUM/2018) ASSESSMENT YEAR: 2010-11 INCOME TAX OFFICER-26(1)(1), ROOM NO. 629, 6 TH FLOOR, KAUTILYA BHAVAN, G-BLOCK, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI-400051. VS. SHRI JANAK GULABCHAND KHONA, PLOT NO. 267, BATLIWALA COMPOUND NEAR UPVAN LAKE, POKHRAN ROAD NO. 1, THANE-400606. PAN NO. AFJPK 0874 Q APPELLANT RESPONDENT REVENUE BY : MR. SANJAY J. SETHI, DR ASSESSEE BY : NONE DATE OF HEARING : 16/07/2021 DATE OF PRONOUNCEMENT : 23/07/2021 ORDER PER SHAMIM YAHYA, A.M. BY WAY OF THIS MISCELLANEOUS APPLICATION (MA), THE ASSESSEE SEEKS RECTIFICATION OF MISTAKE APPARENT FROM RECORD IN TH E TRIBUNAL ORDER IN ITA NO. 7044/M/2018 FOR ASSESSMENT YEAR 2010-11. 2. WE HAVE HEARD THE LD. DR AND PERUSED THE RECORD. IT IS NOTED THAT IN THE AFORESAID INCOME TAX APPEAL BY THE EX-PARTE ORDER D ATED 20.04.2020, THE ITAT SHRI JANAK G. KHONA MA NO. 105/M/2021 2 HAS DIRECTED THAT DISALLOWANCE FOR BOGUS PURCHASES SHOULD BE RESTRICTED TO 12.5% WHICH HAS BEEN DONE BY THE LD. CIT(A) AND IT MEETS THE END OF JUSTICE. HENCE, ITAT HAS UPHELD THE ORDER OF LD. CIT(A). NOW THIS IS POINTED OUT THAT THE ABOVE ORDER WAS PASSED IN AN APPEAL BY THE REVENUE, WHEREIN THE REVENUE WAS AGGRIEVED THAT LD. CIT(A) HAS DELETED P ART OF ADDITION OF BOGUS PURCHASES BY SUSTAINING ONLY 19.67% OF THE DISALLOW ANCE OF ACCOUNT OF BOGUS PURCHASES. 3. FROM THE ABOVE, IT IS APPARENT THAT THERE IS MIS TAKE APPARENT FROM RECORD IN THE ORDER OF ITAT. AS THE ITAT BY MISTAKE HELD T HAT LD. CIT(A) HAS DECIDED THAT THE BOGUS PURCHASE DISALLOWANCE BY LD. CIT(A) IS @ 12.5% OF THE BOGUS PURCHASE WHILE ACTUALLY LD. CIT(A) HAS SUSTAINED ON LY 19.67% DISALLOWANCE. HENCE, THERE IS A MISTAKE APPARENT FROM RECORD IN T HE ORDER OF THIS TRIBUNAL. HENCE, WE RECALL THE ABOVE ITAT ORDER. REGISTRY IS DIRECTED TO FIX THE CASE IN THE NORMAL COURSE OF HEARING. 4. IN THE RESULT, THIS MA STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 23/07/2021. SD/- ( SHAMIM YAHYA ) ACCOUNTANT MEMBER MUMBAI; DATED: 23/07/2021 RAHUL SHARMA, SR. P.S. SHRI JANAK G. KHONA MA NO. 105/M/2021 3 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI