| The Tax Publishers2020 TaxPub(DT) 5117 (Mad-HC) : (2021) 277 TAXMAN 0416 INCOME TAX ACT, 1961
Section 254 Section 68
Where during review proceedings under section 254, Tribunal deleted additions made by AO under section 68 with regard to the two dealers from whom assessee made purchase of iron, considering that on review, Tribunal noted that assessee had provided several details of these sellers like TIN number, PAN number, invoices, etc., to prove their identity and genuineness of transaction, ignoring the material already on record on the part of Tribunal was a mistake apparent on the face of record under section 254 and Tribunal rightly recalled its order and rectified the mistake and it has rightly set aside the additions under section 68.
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Appeal (Tribunal) - Rectification of mistake apparent from record - In review proceedings, Tribunal whether justified in setting aside additions made under section 68 for alleged bogus purchases -
Issue was as to whether Tribunal was right in deleting additions made by AO under section 68 with regard to the two dealers from whom assessee was said to have received iron. Case of Revenue was that dealers were not produced by assessee and they could not be located in their registered premises during the course of survey. Revenue further contended that Tribunal had no power to review its order on a Miscellaneous Application filed by the Revenue Department and pass a fresh order on merits, which was contrary to the earlier order passed under section 254(2). Held: On review, Tribunal noted that assessee had provided several details of these sellers like TIN number, PAN number, invoices, etc., to prove their identity and genuineness of transaction. Powers of assessment vested with all the three Authorities, including the appellate authorities, are co-extensive in law and there is no prohibition in law in producing the relevant materials before the permission of the second appellate authority, viz., the Tribunal. There is no dispute or question raised about the manner in which the said documents were placed before the Tribunal. It is only the question whether the Tribunal failed to take note of the said relevant evidence while passing the original Appellate Order. Ignoring the material already on record on the part of Tribunal was a mistake apparent on the face of record under section 254 and Tribunal rightly recalled its order and rectified the mistake and it has rightly set aside the additions under section 68.
REFERRED : Shree Ganesh Ventures v. Dy. CIT [I.T.A.No.2344/Mds/2015, dt. 29-9-2016], Shree Ganesh Ventures v. Dy. CIT [Miscellaneous Petition No. 54/Mds/2016 in ITA. No.2344/Mds/2015, dt. 22-7-2016]
FAVOUR : In assessee's favour.
A.Y. : 2007-08
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