Tribunal dismisses application for rectification of mistake in tax order; upholds decision on bogus share capital

The Tribunal dismissed the applicant's miscellaneous application seeking rectification of a mistake in its order regarding the addition of Rs. 38,75,000 by the Assessing Officer for bogus share capital. The Tribunal upheld the Commissioner of Income Tax (Appeals) decision and concluded that there was no mistake in its order, ultimately dismissing both the assessee's and Revenue's appeals. The application was dismissed, and the order was pronounced on 4th May 2018.

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Issues:
Rectification of mistake alleged in the Tribunal's order regarding addition of Rs. 38,75,000 made by AO on account of bogus share capital.

Analysis:
The applicant filed a miscellaneous application seeking rectification of the mistake in the Tribunal's order dated 13.02.2015, concerning the addition of Rs. 38,75,000 made by the Assessing Officer (AO) on the grounds of bogus share capital. The applicant argued that the addition was wrongly confirmed by the Commissioner of Income Tax (Appeals) [CIT(A)] and subsequently by the Tribunal. The applicant contended that all necessary details and evidence challenging the lower authorities' findings were submitted before the Tribunal, including a Paper Book with confirmation letters, bank statements, PAN cards, audited financial statements, and details of shareholder companies from the Ministry of Corporate Affairs website. The applicant emphasized that these submissions clearly established the identity, genuineness, and creditworthiness of the shareholders. The learned Authorized Representative (A.R.) urged for the deletion of the addition or recalling the order based on these submissions.

The Departmental Representative (D.R.) argued that there was no apparent mistake in the Tribunal's order. Upon careful consideration of the miscellaneous application and the Tribunal's order, it was observed that the appeal involved the challenge to the addition of Rs. 38,75,000 by the AO for bogus share capital, as well as the Department's appeal against the deletion of Rs. 1,98,59,900. The Tribunal thoroughly examined the issue and upheld the CIT(A)'s findings, ultimately dismissing both the assessee's and Revenue's appeals. The Tribunal concluded that there was no mistake, let alone an apparent mistake, in its order. Consequently, the miscellaneous application filed by the assessee was dismissed, and the order was pronounced in open court on 4th May 2018.

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