2016 (7) TMI 1596 - AT - Income Tax

Addition u/s 68 - disallowance u/s 40A(3) - HELD THAT - From the arguments of the learned Authorized Representative and on examining the order of the Tribunal, it is apparent that the documents furnished by the assessee in the paper book was lost sight off and were not examined by the Bench on the earlier occasion and there is no discussion with respect to the same in the order of the Tribunal. Therefore, in the interest of justice, we hereby recall the order of the Tribunal in order to examine the materials on record pointed out by the assessee and thereafter rectify the mistake if any, in the order of the Tribunal. The Registry is directed to post the appeal for hearing in due course and intimate both the parties.

Summary

Issues:
Rectification of mistake in the order passed by the Tribunal in ITA No.2344/Mds/2015 dated 16.03.2016 regarding addition made under section 68 for creditors M/s.Shree Ganesh Steels and M/s. D.G.Traders and disallowance under section 40A(3) of the Act for ?17,20,000.

Analysis:

1. The assessee filed a Miscellaneous Petition seeking rectification of a mistake in the Tribunal's order dated 16.03.2016. The Authorized Representative argued that crucial details establishing the identity and genuineness of the creditors were not considered by the Tribunal, including invoices, addresses, and sales-tax registration numbers. The Representative also highlighted a similar oversight in the disallowance made under section 40A(3) of the Act. The plea was for the Tribunal to recall the order to rectify these errors.

2. The Departmental Representative opposed the submissions, claiming that all relevant facts were indeed considered by the Tribunal during the previous decision. However, upon careful consideration of the arguments and examination of the records, the Tribunal acknowledged that the documents provided by the assessee were not adequately reviewed previously. As a result, the Tribunal decided to recall its order to reevaluate the materials presented and rectify any potential mistakes, emphasizing the importance of ensuring justice. The appeal was scheduled for a future hearing, with both parties to be informed accordingly.

3. Ultimately, the Tribunal allowed the Miscellaneous Petition of the assessee, signifying a successful outcome for the applicant. The order was pronounced in an open court on 22nd July 2016, marking the conclusion of the proceedings in this matter.