9911796707
TMI Blog2017 (9) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... r. During such assessment, the Assessing Officer noticed that the assessee had made purchases of grey cloth worth Rs. 7.78 crores (rounded off) but it made sales only of Rs. 17.95 lakhs (rounded off) and shown closing stock of Rs. 7.71 crores (rounded off). The assessee had shown creditors for the purchase of goods at Rs. 7.68 crores (rounded off). The Assessing Officer analysed the purchases made by the assessee. He noted that the notice could not be served upon the creditors of the assessee from whom such purchases were made. He came to the conclusion that the creditors were bogus and they had merely issued purchase bills to the assessee. He held that the assessee had used his unaccounted income and made unexplained investment. The Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Referring extensively to the assessment order and that of the Appellate Commissioner in such Miscellaneous Application, the department contended that the Assessing Officer had never made addition on the ground of disallowance of purchases made by the assessee but the addition was based on Section 69 of the Act on the ground that the assessee had made unexplained investment in the stock. The Tribunal should have therefore adjudicated such issue of addition under Section 69 of the Act taking into consideration the totality of the facts and circumstances of the case. The Tribunal in the process of deleting the addition under section 69 of the Act has committed an error apparent on the face of the record. 4. The Tribunal by the impugned order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal has relied upon judgement of the Hon'ble Gujarat High Court in case of Rajesh Babubhai Damania vs. ITO, (2001) 251 ITR 541 (Guj) and observed that if the Tribunal reverses finding of the CIT(A) on the basis of reasoning given by the AO and without meeting reasons assigned by theld. CIT(A), then apparent error would have been committed by the Tribunal. According to the ld. Sr. DR in the present case also, the Tribunal without looking to reasons given by the ld. CIT(A) has set aside the issue to the file of the AO. On the other hand, the ld. AR relied upon the order of the Tribunal and contended that facts are quite distinguishable from the cases of M/s. Pankaj Diamonds rendered in MA No. 93/Ahd/2014 referred to by the ld. DR. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -half years when time limit to give effect to the order of the Tribunal almost appears to have been expired. We do not find any apparent error in the order of the Tribunal while disposing of both the appeals. In the garb of pointing out apparent error, attempt at the end of the Revenue is to get the order of the Tribunal revived, hence, both Mas. are rejected." 5. Learned counsel Ms. Mauna Bhatt for the department submitted that the Tribunal failed to take into account the true import of the order of assessment and that of the Appellate Commissioner. Without examining the materials on record, the Tribunal granted relief to the assessee on an entirely unrelated issue. This was a clear error apparent on the record which called for rectifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tands and the findings of the Assessing Officer and the CIT(Appeals). The Tribunal gave a certain verdict which may have aggrieved the department and may have also given rise to an arguable legal point. Nevertheless, that by itself would not enable the department to activate the rectification powers of the Tribunal. Such powers are etched with serious limitations and cannot be exercised by way of appellate or review powers. There was nothing in the application of the department to point out an error in the order of the Tribunal which could have been rectified under exercise of powers under section 254 of the Act. 7. Learned counsel for the department, however, submitted that the department may even consider challenging the original order o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
