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2014 (12) TMI 394 - HC - Income TaxRejection of application of rectification u/s 254(2) – Addition u/s 68 - identity or capacity not accepted by Assessing Authority - genuineness of the transaction proved or not - Held that:- The Tribunal rightly allowed the appeal of the assessee in part deleting additions pertaining to some of the firms/company, however, the Tribunal confirmed the addition relating to M/s Vardhman Trading Company - the identity of the creditor has not been proved on a prima facie basis by filing partnership deed or any other credible evidence - The existence of 17 partners stands falsified in view of the inquiries made by the AO, which was communicated to the assessee - The creditor was not assessed in the relevant AY, and, its capacity has also not been proved on a prima facie basis - the genuineness of the transaction has obviously not been established – assessee by means of the rectification application has attempted to re-adjudicate the factum of existence of the firm M/s Vardhman Trading Company which has already been held to be a fictitious and bogus firm - Thus the finding recorded by the authorities and the Tribunal attained finality regarding transaction pertaining to M/s Vardhman Trading Company - To invoke the provisions of Section 254(2) of the Act, there must be an error apparent on the face of record – the Tribunal has no power to review its own order - In exercise of the power under sub section (2) of Section 254, Tribunal can only rectify any mistake apparent from the record – thus, the order of the Tribunal is upheld – Decided against assessee.
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