2018 (7) TMI 2143 - AT - Income Tax

Tribunal Rectifies Order to Include Income Estimation, Emphasizes Importance of Addressing All Arguments

M/s. Otmal V. Purohit Versus Income Tax Officer, Wd-14 (2) (4), Mumbai

The Tribunal allowed the appellant's miscellaneous application seeking rectification of an order that omitted the assessment of income estimation based on ... Rectification of mistake - Estimation of income - Unexplained cash credit - net commission estimation @ 0.10% - HELD THAT:- Tribunal has given direction to exclude transfer entries/returned cheques/inter bank transfers in assessee’s bank account whereas the issue on the assessment by estimation of income on the remaining amount was inadvertently omitted. Thus there is a mistake to this extent in the order [2017 (1) TMI 1728 - ITAT MUMBAI] Now we direct the assessee to exclude the returned cheques/RTGS/inter bank transfers in assessee's bank account and assess the income by way of estimating the commission on the remaining amount after applying the decision of the co-ordinate bench of the Tribunal in the case of Ramesh Kumar vs. ACIT in [2015 (5) TMI 385 - ITAT MUMBAI]. The order of the Tribunal stands amended and modified to that extent. Issues involved:Rectification of order regarding estimation of profit based on submissions and contentions.Analysis:The appellant filed a miscellaneous application seeking rectification of the order passed by the Tribunal. The issue raised was that the Tribunal did not decide on the estimation of profit based on the submissions made during the hearing. The appellant's counsel argued that the income estimation issue remained unadjudicated, as the Tribunal set aside the matter without any specific direction. The counsel referred to a previous case where net commission income was estimated at 0.10% and requested a similar estimation in this case. The Departmental Representative objected, stating that the Tribunal had set aside the issue without directions. After hearing both parties, the Tribunal noted that the arguments of the appellant's counsel were not addressed in the order. The Tribunal acknowledged the mistake in omitting the assessment by estimation of income on the remaining amount after excluding certain entries in the bank account. Consequently, the Tribunal directed the appellant to exclude specific entries and assess the income by estimating the commission based on the remaining amount, following the decision of a coordinate bench in a previous case. The Tribunal allowed the miscellaneous application and amended the order accordingly.This judgment primarily revolves around the rectification of an order concerning the estimation of profit based on submissions and contentions presented during the hearing. The Tribunal acknowledged the mistake in omitting the assessment by estimation of income on the remaining amount after excluding certain entries in the bank account. The Tribunal directed the appellant to exclude specific entries and assess the income by estimating the commission based on the remaining amount, following the decision of a coordinate bench in a previous case. The Tribunal allowed the miscellaneous application and amended the order to rectify the omission.