Cavalier Trading Pvt. Ltd. v. Dy.CIT (2020)421 ITR 394 (Bom.)(HC)/ Kalpit Trading Pvt. Ltd. v Dy. CIT (2020)421 ITR 394 (Bom) (HC) www.itatonline.org

S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record –Bogus purchases–Estimation of profit at 1.5 % of on sales and purchases- Re hearing of appeal is not permissible in law-Writ against the rectification is held to be not bonafide – Cost of Rs 10000 is imposed on each of the petitioners. [S.69C, 254(1), Art. 226]

The assessee is in the business of builder and developer. Writ petition is filed against the order of Tribunal rejecting the miscellaneous application filed by the appellant. CIT(A) has restricted the addition to 1.5% from 3% on sales and purchases of the alleged bogus purchases.  Tribunal affirmed the order of the CIT(A). The petitioner moved the application for rectification of mistake which was dismissed by the Tribunal. Dismissing the petition the Court observed as under “In the instant case, what we notice is that not only was there no mistake from the record but in the garb of the mis. Application, petitioner had  sought for review of the  final order passed by the Tribunal and for re-hearing of the appeal which is not permissible in law. In our view, Writ petition does not appear to be bonafide. “Accordingly the petition is dismissed and cost of Rs.10000 is imposed on each of the petitions on the petitioner.  (Arising M.A. No 658/M/2018 dt. 13-03-2019, ITA No. 4875/Mum/2014.   (W.P. No. 2471 of 2019 dt. 31-01-2020 )  (AY. 1999-2000)