SHRI NAVKAR FABRICS, V. ITO WD 1(1),

MA 220/MUM/2015

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 4108 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 04-02-2016
• Appeal Filed By: Assessee
• Bench Allotted: E
• Assessment Year: 2007-2008
• Appeal Filed On: 28-09-2015
• Court: TRIBUNAL
• Department Lawyers: ADAGIRI
• Assessee Lawyers: H N MOTIWALLA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL E , BENCH MUMBAI BEFORE SHRI R.C.SHARMA , A M & SHRI SANDEEP GOSAIN , J M MISCELLANEOUS APPLICATION NO . 220 /MUM /20 1 5 (ARISING OUT OF ITA NO. 8013 /MUM/201 0 ) ( / ASSESSMENT YEAR : 20 0 7 - 08 ) M/S SHREE NAVKAR FABRICS. H.NO.529, PANNA COMPOUND ASHIBI KALYAN ROAD, KANERI, BHIWANDI VS. ITO, WARD - 1(1), KALYAN, ./ ./ PAN/GIR NO. : A A UFS 2789 J ( / APPELLANT ) .. ( / RESP ONDENT ) /ASSESSEE BY : SHRI H.N.MOTIWALLA & SHRI PIYUSH CHHAJED /REVENUE BY : SHRI B.YADAGIRI / DATE OF HEARING : 29/01/2016 / DATE OF PRONOUNCEMENT 04/02 /201 6 / O R D E R PER R.C.SHARMA (A.M) : TH IS MISCELLANEOUS APPLICATION AROSE OUT OF ITAT ORDER DATED 5 - 6 - 2015 IN RESPECT OF ITA NO.8013/MUM/2010. 2. IT WAS SUBMITTED BY LD. AR THAT THE CONCLUSION DRAWN BY THE TRIBUNAL IN ITS ORDER IS BASED ON INCORRECT FACT S AND THEREFORE THE SAME IS MISTAKE APPARENT FROM THE RECORD. THE ASSESSEE THEREFORE PRAYS THAT THE FACTS AS MENTIONED IN THE ORDER BE RECTIFIED TO REFLECT THE CORRECT FACTS AND MODIFY THE ORDER TO THAT EXTENT. 3. AS PER LD. AR THE CIT(A) HAS CLEARLY BROU GHT OUT IN THE ORDER THAT ALL THE EXPENSES WERE VERIFIABLE AND SUPPORTED BY INVOICES, THIRD PARTY CONFIRMATIONS AND MAJORITY OF THEM WERE CONFIRMED IN RESPONSE TO DIRECT MA NO. 220/15 2 NOTICES ISSUED BY DEPARTMENT U/S.133(6) AND THEREFORE ALSO THE REJECTION OF THE BOOKS BASED ON THE INCORRECT FACTS NEEDS TO BE RECTIFIED. 4. AS PER LD. AR THE TRIBUNAL HAS WRONGLY UPHELD THE REJECTION OF BOOKS OF ACCOUNT MERELY BECAUSE THE GP HAS COME DOWN. 5. ON THE OTHER HAND, IT WAS SUBMITTED BY LD. DR THAT THERE IS NO MISTAKE IN THE ORD ER OF THE TRIBUNAL. 6. WE HAVE CONSIDERED RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF TRIBUNAL AS WELL AS DETAILED MISCELLANEOUS APPLICATION FILED BY THE ASSESSEE RUNNING IN 8 PAGES. WE FOUND THAT THE TRIBUNAL HAS DEALT WITH EACH AND EVERY A SPECT OF THE ISSUE RAISED BEFORE IT WITH REGARD TO THE REASONS FOR REJECTION OF BOOKS OF ACCOUNT AND CONFIRMED THE ADDITION SO MADE BY THE AO BY ESTIMATING PROFIT RATE. THE TRIBUNAL OBSERVED THAT THE BEST EVIDENCE FOR THE ESTIMATION OF THE BOOK RESULTS IS THE NET PROFIT RATE DECLARED BY THE ASSESSEE IN THE PRECEDING YEARS. THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION CLAIMS THAT IT HAD SHOWN GP AT 10.8% AS AGAINST GP RATE OF 7.59% DECLARED FOR ASSESSMENT YEAR 2005 - 06 AND 7.70% DECLARED FOR THE ASSESSMENT Y EAR 2006 - 07. AS POINTED OUT BY THE CIT(A), THE GP RATE OF 10.80% WHICH IS CLAIMED TO BE THE GP RATE FOR THE YEAR UNDER APPEAL WAS AFTER INCLUDING THE ADDITION AL INCOME OFFERED ON ACCOUNT OF STOCK AT RS.80 LAKH. HOWEVER, IF THIS SUM IS EXCLUDED, THEN THE GR OSS PROFIT WORKS OUT TO 4.16%. THE ASSESSEE DURING THE COURSE OF SURVEY, HAD SUBMITTED THAT RS.80 LAKH WAS BEING OFFERED AS ADDITIONAL INCOME OVER AND ABOVE ITS RETURNED INCOME AND HENCE WE FIND NO MERIT IN THE BOOK RESULTS SHOWN BY THE ASSESSEE. ACCORDING LY, THE TRIBUNAL HAD UPHELD THE MA NO. 220/15 3 ORDER OF THE CIT(A) IN ESTIMATING THE INCOME IN THE HANDS OF THE ASSESSEE BY APPLYING THE AVERAGE GP RATE OF PRECEDING TWO ASSESSMENT YEARS. 7. WE DO NOT FIND ANY MISTAKE MUCH LESS AN APPARENT MISTAKE IN THE ORDER OF THE TR IBUNAL WHICH COULD BE RECTIFIED U/S.254(2). IT IS PERTINENT TO MENTION HERE POWER OF THE TRIBUNAL U/S.254 (2) IS LIMITED TO RECTIFY THE MISTAKE APPARENT ON RECORD , ISSUES REQUIRING LONG DELIBERATION, CANNOT BE ADJUDICATED WHILE CONSIDERING ASSESSEES APPLIC ATION U/S.254(2) OF THE ACT. 8 . IN THE RESULT, MISCELLANEOUS APPLICATION OF THE ASSESSEE IS DISMISSED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 0 4 / 0 2 / 201 6 . S D / - S D / - ( SANDEEP GOSAIN ) ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 0 4 / 0 2 /201 6 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//