TECH DATA ADVANCED SOLUTIONS (INDIA) P. LTD. (earlier known as AVNET TECHNOLOGIES SOLUTIONS INDIA PVT. LTD.), Mumbai V. DCIT, CC 1(4), Mumbai

MA 300/MUM/2023

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 2108 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 28-02-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 30-11-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 12-04-2023
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: UJJAWALKUMAR CHAVHAN
• Assessee Lawyers: VIJAY MEHTA
• Section: 254(2)

Judgement Text

आयकर अपीलीय अिधकरण मुंबई पीठ “ई”,मुंबई 炈ी िवकास अव瀡थी, 瀈याियक सद瀡य एवं 炈ी गगन गोयल, लेखाकार सद瀡यके सम楹 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “E”, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER& SHRI GAGAN GOYAL, ACCOUNTANT MEMBER MA. NO.300/MUM/2023 (Arising out of ITA NO.2821/MUM/2022(A.Y.2012-13) M/s. Tech Data Advanced Solutions (India) Pvt. Ltd.(earlier known as Avnet Technology Solutions (I) Pvt. Ltd.) A-301, 3 rd Floor, Supreme Business Park, Behind Lake Castle, Hiranandani Garden, Powai, Mumbai – 400 076. PAN: AAACO-3686-M ........ 灹ाथ牸/Applicant बनाम Vs. Dy. Commissioner of Income Tax, Circle 1(4), Room No.902, 9 th Floor, Old CGO Bldg., Mumbai – 400 020 ..... 灹ितवादी/Respondent 灹ाथ牸 獧ारा/ Applicant by : Shri Vijay Mehta 灹ितवादी 獧ारा/Respondent by : Shri Ujjawal Kumar Chavhan सुनवाई क琉 ितिथ/ Date of hearing : 01/12/2023 घोषणा क琉 ितिथ/ Date of pronouncement : 29/02/2024 आदेश/ORDER PER VIKAS AWASTHY, JM: This Miscellaneous Application has been filed by the assessee u/s. 254(2) of the Income Tax Act, 1961 [ in short ‘the Act’], seeking rectification in the order of Tribunal dated 30/03/2023 vide which appeal of the assessee in ITA No.2821/Mum/2022 for Assessment Year 2012-13 was decided. 2 MA. NO.300/MUM/2023 (Arising out of ITA NO.2821/MUM/2022(A.Y.2012-13) 2. Shri Vijay Mehta appearing on behalf of the assessee submits that the A.O had framed assessment after rejecting books and estimated gross profit at 10%. The CIT(A) modified the assessment order and estimated G.P rate at 8%. The Tribunal while giving detailed finding deleted the G.P addition and observed that, it is not the case of Revenue that the assessee has not followed correct method of accounting or income has not been computed in accordance with the notified standards. However, in para 12, the Tribunal directed the A.O to make fresh assessment after allowing reasonable opportunity of hearing to the assessee. Once the Tribunal has reversed G.P addition and rejection of books of account no further directions were required to be given to the A.O for making fresh assessment except for deleting the G.P addition. The directions given by the Tribunal in para 12 appears to be an inadvertent mistake. 3. Shri Ujjawal Kumar Chavhan representing the Department vehemently opposed the rectification application filed by the assessee. He submitted that Tribunal has rightly given directions for making fresh assessment. Earlier the A.O had completed the assessment after rejecting books of account of the assessee. The Tribunal has reversed the findings of A.O and CIT(A) in rejecting the assessee’s books. 4. We have heard the submissions made by both sides. It is an undisputed fact that the A.O at the outset rejected the books of assessee and made estimated G.P addition @10%. Thus, the A.O never examined the income and expenditure declared by the assessee in the books. The Tribunal in para 11 of the order has observed “ it is not the case of Revenue that the assessee has not followed correct method accounting or income has not been computed in 3 MA. NO.300/MUM/2023 (Arising out of ITA NO.2821/MUM/2022(A.Y.2012-13) accordance with notified standards.”. The said observations have been made by the Tribunal in the context of rejection of books. The Tribunal nowhere commented that the income returned by the assessee has to be accepted as it is. The direction given in para 12 of the order is not an inadvertent mistake but is a conscious decision of the Bench. The assessee is seeking review of the order in the garb of rectification, which is beyond the scope of section 254(2) of the Act. 5. In the result, Miscellaneous Application of the assessee is dismissed being devoid of any merit. Order pronounced in the open court on Thursday the 29th day of February, 2024. Sd/- Sd/- (GAGAN GOYAL) (VIKAS AWASTHY) लेखाकार सद瀡य/ACCOUNTANT MEMBER 瀈याियक सद瀡य/JUDICIAL MEMBER मुंबई/ Mumbai, 琈दनांक/Dated 29/02/2024 Vm, Sr. PS(O/S) 灹ितिलिप अ灡ेिषत 灹ितिलिप अ灡ेिषत灹ितिलिप अ灡ेिषत 灹ितिलिप अ灡ेिषतCopy of the Order forwarded to : 1. अपीलाथ牸/The Appellant , 2. 灹ितवादी/ The Respondent. 3. The PCIT 4. िवभागीय 灹ितिनिध, आय.अपी.अिध., मुबंई/DR, ITAT, Mumbai 5. गाड榁 फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt.Registrar) ,Mumbai