M/s. Novachem Pharma, Coimbatore V. ITO, Coimbatore

MA 169/CHNY/2017

• Counselvise Citation: [2017] 124 COUNSELVISE.COM (IT) 5775 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 12 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-08-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 25-04-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN
• Assessee Lawyers: S RAMACHANDRAN
• Keywords: Rectification of order
• Section: 40A(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A B ENCH, CHENNAI , . ,'# BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER MISCELLANEOUS PETITION NO.169/MDS/2017 (IN I.T.A.NO.3109/MDS/2016) ( / ASSESSMENT YEAR :2012-13) M/S. NOVACHEM PHARMA, NO.112, T-140, SHOP NO.1&2, SUNDAKKAMUTHUR VILLAGE, NEIGHBOURHOOD SURVEY, KOVAIPUDUR, COIMBATORE 641042. V. THE INCOME TAX OFFICER, NON CORPORATE WARD -4 (2), 63-A, RACE COURSE ROAD, COIMBATORE PAN: AAHFN3405F (PETITIONER) ( /RESPONDENT) APPLICANT BY : SHRI S. RAMACHANDRAN, FCA /RESPONDENT BY : SHRI B. SAGADEVAN, JCIT /DATE OF HEARING : 28.07.2017 /DATE OF PRONOUNCEMENT : 07.08.2017 / O R D E R PER A. MOHAN ALANKAMONY, AM: THE MISCELLANEOUS PETITION IS FILED BY THE ASSESSEE PRAYING FOR RECTIFICATION OF MISTAKE APPARENT ON RECORD BY RECALLING THE ORDER OF THE TRIBUNAL PASSED IN I.T.A. NO.3109/MDS/ 2016 DATED 15.03.2017. 2.1 AT THE OUTSET THE LD. AR SUBMITTED THAT THE ASS ESSEE IS A PARTNERSHIP FIRM , HOWEVER IN PARA NO.3, PAGE 2 OF THE ORDER IT WAS STATED THAT ASSESSEE IS AN INDIVIDUAL , HE THEREFORE PLEADED 2 M.P.NO.169 /MDS/2017 THAT THE ABOVE MISTAKE MAY BE RECTIFIED. THE LD.DR CONCEDED TO THE SUBMISSION OF THE LD.AR. 2.2 ON VERIFYING THE FACTS, IT IS APPARENT THAT THE MISTAKE POINTED OUT BY THE LD.AR REQUIRES TO BE RECTIFIED. THE ASSE SSEE IS A PARTNERSHIP FIRM. THEREFORE THE WORD INDIVIDUAL STANDS HEREBY CORRECTED TO PARTNERSHIP FIRM IN PAGE 2, PARA 3, IN THE SECOND LINE OF THE ORDER OF THE TRIBUNAL DATED 15.03.2017 IN IT A NO.3109/MDS/2016. IT IS ORDERED ACCORDINGLY. 3. THE LD.AR FURTHER SUBMITTED BEFORE US THAT THE T RIBUNAL IN ITS ORDER HAD OBSERVED THAT THE LD.AO AND THE LD.CI T(A) HAD NOT ARITHMETICALLY COMPUTED THE PROFITS OF THE ASSESSEE FROM THE BOOKS OF ACCOUNTS WHICH IS ERRONEOUS. THE LD.AR FURTHER SUBMITTED THAT THE REVENUE AUTHORITIES HAD COMPUTED THE PROFITS OF THE ASSESSEE ARITHMETICALLY AND ALL THE TRANSACTIONS WERE RECORD ED IN THE BOOKS OF ACCOUNTS OF THE ASSESSEE. IT WAS THEREFORE ARGU ED THAT THE TRIBUNAL HAD ERRONEOUSLY ESTIMATED THE PROFIT OF TH E ASSESSEE AND THEREBY SUSTAINED THE ADDITION OF RS.23,60,000/- WH ILE AS THE LD.CIT(A) HAD ONLY SUSTAINED THE ADDITION OF RS.18. 88 LAKHS. THE LD.DR ON THE OTHER HAND ARGUED BY STATING THAT THER E IS NO 3 M.P.NO.169 /MDS/2017 MISTAKE IN THE ORDER OF THE TRIBUNAL WHICH IS REQUI RED TO BE RECTIFIED. 3.1 WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFUL LY PERUSED THE MATERIALS ON RECORD. IT IS APPARENT FROM THE O RDERS OF THE LD.AO AND THE LD.CIT(A) THAT THE REVENUE AUTHORITIE S HAD COMPUTED/ESTIMATED THE INCOME BECAUSE THE ASSESSEE HAD NOT MAINTAINED PROPER VOUCHERS, INFLATED THE PURCHASES, DID NOT ESTABLISH THE GENUINENESS OF THE SUNDRY CREDITORS A ND HAD MADE CASH PAYMENTS TOWARDS PURCHASES VIOLATING THE PROVI SIONS OF SECTION 40A(3) OF THE ACT ETC. THEREFORE, THE LD.AO HAD MADE ADDITION TO THE EXTENT OF RS.1,03,68,785/-. ON APPE AL, THE LD.CIT(A) HAD ESTIMATED THE PROFIT OF THE ASSESSEE AT 8% OF TURNOVER CONSIDERING THE INTRICACIES IN THE CASE OF THE ASSESSEE. THE TRIBUNAL FURTHER CONSIDERING THE CASE OF THE AS SESSEE ESTIMATED THE INCOME AT 10% OF THE TURNOVER, THEREB Y ENHANCED THE INCOME SUSTAINED BY THE LD.CIT(A) AT RS.18.88 L AKHS TO RS.23,60,000/-. THUS THE TRIBUNAL HAS DECIDED THE M ATTER CONSCIOUSLY AND AFTER DELIBERATION. THEREFORE, WE DO NOT FIND ANY MISTAKE IN THE ORDER OF THIS TRIBUNAL ON THIS ISSUE . 4 M.P.NO.169 /MDS/2017 4. IN THE RESULT, THE MISCELLANEOUS PETITION FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED ON THE 07 TH AUG, 2017 AT CHENNAI. SD/- SD/- ( ) (GEORGE MATHAN) /JUDICIAL MEMBER ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER /CHENNAI, /DATE : 07 TH AUG 2017 JR #$%& '(% /COPY TO: 1.'&+$ /APPELLANT 2. /RESPONDENT 3. , ( '&+$ )/CIT(A) 4. , /CIT 5. %-.+ / /DR 6. .0 $ /GF