THE MAHABIR JUTE MILLS LIMITED,GORAKHPUR V. JOINT COMMISSIONER OF INCOME TAX (OSD), CIRCLE - 1 , GORAKHPUR

MA 1/VNS/2024

AI Insights

The case revolves around a Miscellaneous Application filed by The Mahabir Jute Mills Limited against an order confirming the addition of Rs. 12,06,600 under section 40A(3) of the Income Tax Act, 1961, related to the Assessment Year 2009-10. The assessee contended that the Tribunal had overlooked the fact that no individual payment exceeded Rs. 20,000, the prescribed limit under section 40A(3). However, the Departmental Representative argued that the Tribunal had already considered these facts and confirmed the disallowance. The Tribunal concluded that the application was essentially seeking a review of its previous order, which is not permissible under the Act.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471751 (ITAT-VARANASI)
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 22-10-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 13-09-2024
• Assessment Year: 2009-2010
• Appeal Filed On: 29-01-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KAVITA MEENA
• Assessee Lawyers: ASHISH BANSAL
• Section: 254(2); 40A(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL CIRCUIT BENCH, VARANASI BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER MA No. 01/VNS/2024 (Arising out of consolidated order passed by the Varanasi Bench of ITAT in ITA No. 351/Alld/2014 and others) Assessment Year 2009-10 The Mahabir Jute Mills Limited, Sahjanwa, Gorakhpur PAN : AAACT8708R vs. Jt. Commissioner of Income Tax (OSD), Circle-1, Gorakhpur (Applicant) (Respondent) For Assessee : Shri Ashish Bansal, Shri Pankaj Shukla& Shri Subham Singh For Revenue : Smt. Kavita Meena, Sr.DR Date of Hearing : 13-09-2024 Date of Pronouncement : 22-10-2024 O R D E R PER B.R. BASKARAN, A.M : The assessee has filed this Miscellaneous Application submitting that there is a mistake apparent from record in the order dt.16-11-2023 passed in ITA No. 351/Alld/2014 relating to AY 2009-10. 2 MA No. 01/VNS/2024 2. The Ld.AR submitted that the Tribunal has confirmed the addition made u/s.40A(3) of the Income Tax Act, 1961 (‘the Act’)to the extent of Rs.12,06,600/-. He submitted that the assessee has paid freight charges to individual truck drivers against separate consignment and no transfer bill exceeded the limit of Rs. 20,000/- prescribed u/s. 40A(3) of the Act. The Ld.AR submitted thatthe Tribunal has omitted to take note of this fact and accordingly confirmed the addition as mentioned above. He submitted that non-consideration of above mentioned vital fact has resulted in a mistake apparent from record. Accordingly Ld.AR prayed that the above said mistake be rectified. 3. The Ld.DR, on the contrary, submitted that the Tribunal has examined the facts relating to the above said claim of the assessee in paragraph Nos. 5.1 to 5.7 of its order and it has taken the view that the freight charges were paid on behalf of the suppliers, since it was the responsibility of the supplier to bear the transport charges, meaning thereby, it was payment towards purchases only. Further, the Tribunal has specifically observed that the assessee has not substantiated its claim that each payment did not exceed Rs. 20,000/-. Accordingly, the Tribunal has confirmed the disallowance made u/s. 40A(3) of the Act to the extent of Rs. 12,06,600/-. Accordingly, the Ld.DR submitted that the Tribunal has taken a view on the matter by duly considering the facts surrounding the same. Hence, the present Miscellaneous Application filed by the assessee would result in review of the order, which is not permitted u/s. 254(2) of the Act. 4. We heard rival contentions and perused the record. We find merit in the submissions made by the Ld.DR that the Miscellaneous Application filed by the assessee would result in review of the order of the Tribunal passed u/s. 254(1) of the Act on the facts narrated by the Ld.DR. The review of the order under the garb of rectification is not 3 MA No. 01/VNS/2024 permitted u/s. 254(2) of the Act. Accordingly, we do not find any merit in the present Miscellaneous Application filed by the assessee. Accordingly, we reject the same. 5. In the result, the Miscellaneous Application filed by the assessee is dismissed. Order pronounced on 22-10-2024 by way of proper mentioning in the Notice Board. Sd/- Sd/- [AMIT SHUKLA] [B.R. BASKARAN] JUDICIAL MEMBER ACCOUNTANT MEMBER Varanasi, Dated: 22-10-2024 TNMM Copy to : 1. The Appellant 2. The Respondent 3. The Pr. CIT, concerned 4. D.R. ITAT, Varanasi 5. Guard File. //By Order// //True Copy // Dy./Asst. Registrar, ITAT, Varanasi "