DCIT CIR. 10 (3) (2), MUMBAI V. PATON FASHION P.LTD, MUMBAI

MA 697/MUM/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3100 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-03-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2010-2011
• Appeal Filed On: 29-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R C MODI
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH F, MU MBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER M.A. NO. 697/MUM/2018 IN ITA NO.2411/MUM/2015 (A.Y- 2010-11) M/S PATON FASHION PVT. LTD. 10, SAGAR COMPLEX, M. G. ROAD, VILE PARLE (EAST), MUMBAI-400057 PAN:AADCP8002H VS. ACIT -10(3)(2) AAYAKAR BHAVAN, MUMBAI. (APPELLANT) (RESPONDENT) M.A. NO. 698/MUM/2018 IN ITA NO.2578/MUM/2015 (A Y- 2010-11) ACIT -10(3)(2) AAYAKAR BHAVAN, MUMBAI. VS. M/S PATON FASHION PVT. LTD. 10, SAGAR COMPLEX, M. G. ROAD, VILE PARLE (EAST), MUMBAI-400057 PAN:AADCP8002H (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. R.C. MODI AR REVENUE BY : SH. ABI RAMA KARTHIKEYAN (DR) DATE OF HEARING : 15.02.2019 DATE OF PRONOUNCEMENT : 06 .03.2019 ORDER UNDER SECTION 254(2) OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. THESE TWO MISCELLANEOUS APPLICATIONS (M.A.) ARE FIL ED BY REVENUE FOR RECTIFICATION OF THE ALLEGED MISTAKE IN THE ORDER D ATED 16.05.2018 PASSED IN ITA NO. 2411/M/2015 AND 2578/M/2015. IN THE APPLICA TION, THE APPLICANT/ASSESSEE CONTENDED THAT WHILE ADJUDICATI NG THE GROUNDS OF APPEAL IN CROSS APPEAL FILED BY THE PARTIES ON THE ISSUE R ELATING TO THE GROSS PROFIT (GP) ADDITION, THE GP ADDITIONS WAS RESTRICTED TO 2 2.5%. THE APPLICANT/ REVENUE FURTHER CONTENDED THAT THE ASSESSEE ITSELF DECLARED THE GP AT 24.24% AND AS SUCH THE TRIBUNAL WHILE RESTRICTING THE GP AT 22.5% , IN FACT, REDUCED M.A. NO 697& 698/M/2018 IN ITA NO. 2411 & 2578/MUM /2015 M/S PATON FASHION PVT. LTD 2 THE GP DECLARED THE BY THE ASSESSEE. THE LD DR FO R THE REVENUE SUBMITS THAT WHILE PASSING THE FINAL ORDER THE TRIBUNAL ESCAPED IN ITS ATTENTION THAT IN RESTRICTING THE GP AT 22.5% HAS RESULTED INTO THE T OTAL INCOME DECLARED BY THE ASSESSEE AND THE SAME CONSTITUTE THE MISTAKE APPARE NT ON RECORD. THE LD. DR FOR THE REVENUE PRAYED THAT THE ORDER DATED 16.05.2 018 MAY BE RECALLED. IN ALTERNATIVE THE LD. DR SUBMITS THAT SUITABLE MODIFI CATION MAY BE MADE IN THE ORDER DATED 16.05.2018. 2. ON THE OTHER HAND THE LD. AR FOR THE ASSESSEE SUBMI TS THAT THE TRIBUNAL PASSED THE ORDER AFTER CONSIDERING THE SUBMISSIONS OF THE PARTIES. THE TRIBUNAL FOLLOWED THE ORDER COORDINATE BENCH FOR AY S 2007-08 TO 2009-10. THE LD AR FOR THE ASSESSEE SUBMITS THAT THERE IS NO MISTAKE IN THE ORDER OF THE TRIBUNAL WHICH CAN BE CLASSIFIED AS MISTAKE WIT HIN THE SCOPE OF SECTION 254(2) OF INCOME TAX ACT. 3. WE HAVE CONSIDERED THE SUBMISSION OF BOTH THE PARTI ES AND PERUSED THE RECORD. PERUSAL OF RECORD REVEALS THAT THE ASSESSEE HAS DECLARED GP AT 24.24% FOR THE YEAR UNDER CONSIDERATION [PARA 5.3.7 OF LD. CIT (A)]. THEREFORE, CONSIDERING THE FACTS AND THE CIRCUMSTANCE OF THE C ASE AND THE SUBMISSIONS RAISED BY THE REVENUE IN ITS M.A.(S), WE CLARIFY TH AT PROFIT DECLARED BY THE ASSESSEE SHALL NOT FALL BELOW THE GP DECLARED IN IT S RETURN OF INCOME. REST OF THE FINDINGS OF THE TRIBUNAL IN THE ORDER WILL REMA IN THE SAME. WE DIRECT ACCORDINGLY. M.A. NO 697& 698/M/2018 IN ITA NO. 2411 & 2578/MUM /2015 M/S PATON FASHION PVT. LTD 3 4. IN THE RESULT, M.A.(S) FILED BY REVENUE ARE DISP OSED ACCORDINGLY. ORDER PRONOUNCED IN THE OPEN COURT ON 06.03.2019. SD/- SD/- SHAMIM YAHYA PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATE: 06.03.2019 SK COPY OF THE ORDER FORWARDED TO : 1. ASSESSEE 2. RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. DR B BENCH, ITAT, MUMBAI 6. GUARD FILE BY OR DER, DY./ASST. REGISTRAR ITAT, MUMBAI