2022 (11) TMI 1039 - AT - Income Tax

Rectification of mistake u/s 254 - estimation of income for bogus purchases - HELD THAT - Profit element embedded in the value of disputed purchases was estimated at 12.5% by affirming the order of the CIT(A). On perusal of the file we find that the AR had vide letter dated 27/10/2021 had furnished various decisions of this Tribunal including the decision of this Tribunal in assessee s own case wherein under similar facts and circumstances, the profit percentage has been estimated at 6%. Hence, the non-following of the decision of this Tribunal constitute mistake apparent on record which would be eligible for rectification u/s 254(2) - Hence, we are inclined to accept to the contentions of the ld. AR and accordingly, recall the appeal by allowing the Miscellaneous Application of the Assessee. Registry is directed to fix the main appeal for hearing on 14/11/2022 after informing the both the parties.

Summary

The Appellate Tribunal ITAT Mumbai allowed the Miscellaneous Application of the assessee to recall the order for A.Y. 2007-08, citing a mistake in not following a previous decision where profit percentage was lower. The main appeal is scheduled for hearing on 14/11/2022.