Rohan Tooling Solutions India Pvt. Ltd., Gurgoan V. ITO, Ward- 21(3), New Delhi

MA 887/DEL/2019

AI Insights

The case involves Rohan Tooling Solutions India Pvt. Ltd., the appellant, seeking rectification of a mistake in a previous Tribunal order which did not address an additional ground raised during the appeal process. The additional ground pertained to the treatment of Rs.30,00,000 deemed as bogus purchases, arguing that only the profit margin from these purchases should be taxed, referencing the decision of the Hon'ble Gujarat High Court in CIT vs Bholanath Pvt. Ltd. The Tribunal acknowledged the oversight and decided to recall the previous order to specifically address this additional ground.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 122210 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 14 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 13-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 22-12-2022
• Assessment Year: 2010-2011
• Appeal Filed On: 30-12-2019
• Other Referred Cases: CIT vs Bholanath Pvt. Ltd. (20130 355 ITR 290 (Guj.HC)), National Thermal Power Corporation vs CIT (1998) 229 ITR 383 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus purchase; Rectification of order

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “FRIDAY/SMC” BENCH: NEW DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER M.A.No.-887/Del/2019 [In ITA No.6583/Del/2018] [Assessment Year : 2010-11] Rohan Tooling Solutions India Pvt.Ltd., C/o-CA, M.R.Sahu, M.Sahu & Associates, CAs, House No.651, 1 st Floor, Sector-10A, Gurgaon, Haryana-122001. PAN-AACCR7221B vs ITO, Ward-21(3), New Delhi. APPELLANT RESPONDENT Appellant by Shri M.R.Sahu, CA Respondent by Shri Om Parkash, Sr.DR Date of Hearing 23.12.2022 Date of Pronouncement 14.02.2023 ORDER PER KUL BHARAT, JM : The present Miscellaneous Application (M.A.) has been filed by the assessee seeking rectification of mistake in the order dated 23.10.2019 passed by the Tribunal in ITA No.6583/Del/2018 pertaining to Assessment Year 2010- 11. It is the grievance of the assessee that additional ground raised by Ld. Counsel for the assessee under Rule 27 of the Income Tax Rules, 1962 on 05.07.2019 inadvertently, could not be adjudicated by the Tribunal. 2. Ld. Counsel for the assessee submitted that non-adjudication of the ground is a mistake apparent from the record and is amenable to rectification u/s 254 clause (2) of the Income tax Act,1961 (“the Act”). He therefore, prayed that the mistake may be rectified and the appeal be fixed for hearing qua the additional ground as taken by the assessee vide letter dated 05.07.2019. 2 | Page 3. On the other hand, Ld. Sr. DR opposed the submissions and submitted that the assessee could have very well pointed out to the Tribunal regarding adjudication of additional ground but he did not do so during the course of hearing. 4. I have heard Ld. Authorized Representatives of the parties and perused the material available on record. It is seen from the record that as per letter dated 05.07.2019 wherein the assessee had taken the additional ground that reads as under:- “That on the facts and in the circumstances of the case and in law, the appellant submits that sales amount and quantitative details of opening stock, purchases, sales, closing stock are duly accepted by AO in such situation entire bogus purchases of Rs.30,00,000/- would not be held as undisclosed income rather profit margin embedded in such purchases would be subject to tax having regard to the ratio of the decision of Hon’ble Gujarat HC in the case of CIT vs Bholanath Pvt.ltd. (20130 355 ITR 290 (Guj.HC). AR of the assessee is humbly praying before your good self to accept the additional ground of appeal raised before date of hearing of appeal having regard to the ratio of the decision of the Hon’ble Supreme Court in the case of National Thermal Power Corporation vs CIT (1998) 229 ITR 383 (SC).” 5. The report of the Revenue has confirmed about raising of such ground by the assessee. The Tribunal inadvertently has not adjudicated the ground. Therefore, to sub-serve the interest of substantial justice, the order dated 23.10.2019 passed by the Tribunal is hereby, recalled to the extent of adjudicating the additional ground as taken vide letter dated 05.07.2019. Therefore, Registry is directed to fix the appeal for hearing in due course for adjudicating the additional ground. 3 | Page 6. In the result, the Miscellaneous Application filed by the assessee is allowed in terms indicated herein above. Order pronounced in the open Court on 14 th February, 2023. Sd/- (KUL BHARAT) JUDICIAL MEMBER * Amit Kumar * Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI