9911796707
TMI Blog2023 (2) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... come of Rs.93,92,140/-. Subsequently, the assessment was completed under section 143(3) of the Income Tax Act, 1961 ('the Act'). Reassessment proceedings were initiated against the petitioner and the income was reassessed at Rs.3,56,74,514/- after making an addition of 100% of alleged bogus purchases under section 68 of the Act. 2. An appeal came to be preferred before the Commissioner of Income Tax (Appeals) ['CIT(A)], who, vide order dated 21st March 2018, restricted the addition to 25% of the amount of purchases made. This order, however, was challenged by both the petitioner as also the revenue before the Income Tax Appellate Tribunal, Pune. 3. The Tribunal, vide its order dated 26th September 2019, partly allowed the appeal of the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the petitioner in Form-1 at Rs.22,04,500/-. Rectification Application was filed by the petitioner claiming that the demand raised in Form No.3 was erroneous and unjustified and that the orders of the ITAT had been ignored for purposes of calculating the tax liability. 7. The rectification application of the petitioner was rejected vide order dated 1st September 2021. With a view to justify the figure of disputed tax in Form-3. Reliance was placed upon the question No.7 of the FAQ of Circular No.09/2020, dated 22nd April 2020, issued by the Central Board of Direit Taxes (CBDT). For purposes of reference, question No.7, and the answer thereto are reproduced hereunder : Question No.7 If Assessment has been set aside for giving proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of 2020, which reads as under : "...... (B) in a case where an order in an appeal or in writ petition has been passed by the appellate forum on or before the specified date, and the time for fling appeal or special leave petition against such order has not expired as on that date, the amount of tax payable by the appellant after giving effect to the order so passed." 9. The argument advanced is that the case of the petitioner falls under the aforementioned section, inasmuch as the appeal form, i.e., the Tribunal had passed the order in an appeal before the specified date which is 31st January 2020. 10. As per section 2(h) of the Act of 2020, the time for fling appeal has not expired as on that date, the amount of tax payable by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal is certainly not the one where the Assessing Officer had been directed to carry out a fresh examination on any issue rather the Tribunal had clinched the issue by holding that the addition could only be made to the extent of difference between the gross profit rate on genuine purchases and gross profit rate on hawala purchases. The Tribunal remitted the matter to the file of Assessing Officer for applying the ratio laid down by this Court in the case of Mohommad Haji Adam & Co. (Supra). The reason why the Tribunal did not specify the amount based upon the afore-stated principle was that specific details were not readily available from various ARs/DRs for facilitating the calculation of such rates. 14. Be that as it may, in o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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