Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 1848 - AT - Income TaxRectification u/s 254(2) - mistake apparent from the record - GP calculation - HELD THAT:- We find that in the present cases, the books of accounts of the assessee were rejected and the AO had estimated the incomes of assessee by applying gross profit ratio on the basis of gross profit ratio calculated on the basis of discount received by assessee from the suppliers. CIT(A) calculated profit on gross profit ratio on gross purchases as well as gross profit ratio on net purchases (that is after discount) and applied the gross profit ratio arrived at on the basis of net purchases whereas the Hon'ble Tribunal had held that the gross profit ratio calculated on the basis of gross purchases is to be applied and in this respect has passed a speaking order after recording its findings As decided in RAS BIHARI BANSAL PROP. BANSAL AND CO. VERSUS THE COMMISSIOENR OF INCOME TAX (APPEALS) -X, 2. THE INCOME TAX OFFICER [2007 (4) TMI 47 - HIGH COURT, NEW DELHI] Section 254 enables the concerned authority to rectify any “mistake apparent from the record”. It is well settled that an oversight of a fact cannot constitute an apparent mistake rectifiable under this section. Similarly, failure of the Tribunal to consider an argument advanced by either party for arriving at a conclusion is not an error apparent on the record, although it may be an error of judgment. The mere fact that the Tribunal had not allowed a deduction, even if the conclusion is wrong, will be no ground for moving an application under section 254(2) of the Act. Further, in the garb of an application for rectification, the assessee cannot be permitted to reopen and re-argue the whole matter, which is beyond the scope of the section - Miscellaneous Applications filed by the revenue are dismissed.
|