M/s Avaneesh Enterprises Private Limited, Indore V. Deputy Commissioner of Income Tax 1 (1), Indore

MA 14/Ind/2022

AI Insights

The case involves M/s. Avaneesh Enterprises Pvt. Ltd., which filed a Miscellaneous Application against an order of the Income Tax Appellate Tribunal (ITAT), Indore Bench. The original ITAT order had partly allowed the assessee's appeal concerning the assessment year 2014-15, specifically addressing issues related to the disallowance of bogus purchases and the application of gross-profit rates. The assessee's M/A sought to recall the ITAT's order, claiming that a specific ground regarding the rejection of books of account under Section 145(3) was not addressed. However, the ITAT found that this issue was implicitly covered in the consolidated decision and advised against recalling the order, suggesting that a fresh hearing could lead to unpredictable results.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128099 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 1 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 16-07-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 13-07-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 13-06-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Bogus purchase
• Section: 143(3); 145(3)

Judgement Text

आयकर अपीलȣय अͬधकरण, इंदौर Ûयायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER MA No. 14/Ind/2022 (Arising out of ITA No.193/Ind/2018) Assessment Year: 2014-15 M/s. Avaneesh Enterprises Pvt.Ltd., 101, Harmony Plaza Opp. Lotus Showroom, Agrawal Nagar, Indore. बनाम/ Vs. Dy. CIT-1(1), Indore. (Assessee /Applicant) (Revenue / Respondent) PAN: AAJCA8796K Assessee by Shri Ashish Goyal, CA and Shri N. D. Patwa, Adv. Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 14.07.2023 Date of Pronouncement 17.07.2023 आदेश / O R D E R Per B.M. Biyani, A.M.: This Misc. Application [“M/A”] is filed by the assessee seeking recall of the order dated 31.01.2022 of ITAT, Indore Bench in I.T.A. No. 193/Ind/2018, for assessment year 2014-15 [“impugned order”], by which the assessee’s appeal was partly allowed. 2. Ld. AR for the assessee submits that while passing impugned order, the ITAT has not decided ground no. 2 in which the assessee claimed “That the authority below has grossly erred in applying the provisions of Section M/s. Avaneesh Enterprises Pvt. Ltd., Indore M.A No.14/Ind/2022 – AY 2014-15 Page 2 of 3 145(3) of the Act and in rejecting the books of account without considering the facts and circumstances of the case properly.” 3. The facts leading to the present M/A are such that the assessment- order was passed by Assessing Officer on 07.12.2016 u/s 143(3) of the Income-tax Act, 1961 after making addition on account of disallowance of bogus purchases. The assessee carried matter in first appeal whereupon the CIT(A) reduced/restricted addition to Rs. 73,51,268/- by applying gross- profit rate [“G.P. Rate] of 1%. Thereafter, the assessee came in next appeal before ITAT, Indore Bench wherein the ITAT further reduced/restricted addition to Rs. 36,75,634/- by applying G.P. Rate of 0.50% in place of 1% through impugned order. 4. On a careful reading of the impugned order in the presence of learned Representatives of both sides, we find that in para no. 9, the ITAT has clearly mentioned “However, learned CIT(A) rejected the books of accounts u/s 145(3) of the I.T. Act on the ground that since the assessee did not maintain any supporting documents such as bills, vouchers and other relevant documents for purchase of loose rui and also could not produce any of the Charkha Operators and restricted the addition to Rs. 73,51,268/- increasing the g.p. by 1%”. Thereafter, in the immediate next para no.10, the ITAT has clearly mentioned “On consideration of above facts and discussions thereof in the light of the judicious pronouncements ......to cut short the litigation and to meet the end of the justice ....”. Thus, it is very much clear that the ITAT has taken into account all aspects including the grievance of assessee qua section 145(3) and thereafter given substantial relief to end the litigation. It is further noteworthy that the ITAT has not given ground-wise decision but all grievances of assessee including the issue of section 145(3) had been adjudicated in a consolidated manner. Still for the satisfaction of Ld. AR of assessee, we made it clear to him that if he insisted for re-calling of impugned order, we can do so but in that event we would have to hear the appeal afresh and the out-come of fresh consideration can lead to anywhere, may be more or less beneficial to assessee. Ld. AR, perhaps realizing that M/s. Avaneesh Enterprises Pvt. Ltd., Indore M.A No.14/Ind/2022 – AY 2014-15 Page 3 of 3 the ITAT had already granted sufficient relief to assessee in the impugned order and the consideration afresh may not be in the interest of assessee, instantly agreed for not re-calling of order. Ld. DR supported these discussions and propositions. Being so, we are of the view that the present M/A by assessee cannot succeed. The M/A is therefore dismissed. 5. Resultantly, this M/A is dismissed. Order pronounced in the open court on 17.07.2023. Sd/- sd/- (VIJAY PAL RAO) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore Ǒदनांक /Dated : 17.07.2023. CPU/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore