TaxTMI 
TaxTMI 
2019 (1) TMI 1331
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.... recorded by the ld. CIT (A) that the AO has not brought on record any other material against the assessee to prove the receipt of money out of books on sale of scrap or the cash received back by the assessee in respect of the freight charges. Thus he has pleaded that there is a mistake apparent from record which may be rectified by passing an appropriate order. 2. The ld. D/R has vehemently opposed the Miscellaneous Application of the assessee and submitted that the impugned order is passed on merit after analyzing the relevant facts and record and, therefore, the decision taken by the Tribunal on merit cannot be reviewed under the provisions of section 254(2) of the IT Act. 3 Having considered the rival submissions and careful perusal o....
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....any other material against the assessee to prove that the cash was received back on the total freight charges ...." 10. The above issues on record have not been dealt with and in this way an error has crept in the order passed by your honors. 11. Since it is a mistake apparent from record it is prayed that the same may be rectified by your honors by passing appropriate order under section 254(2) of the Income Tax Act." Thus the assessee has contended in the Miscellaneous Application that the ld. CIT (A) has deleted the addition made by the AO on the ground that the AO has not brought on record any other material or conducted any enquiry to establish the receipt of money out of books and further to establish that the assessee has receiv....
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..... Some other items like empty containers, V.P. rings, zinc dust etc. were sold by the assessee @ Rs. 25/- per KG. Thus the details of the various items of scrap is very well clear from the record and books of account and, therefore, the scrap sale of a particular item which is found in the loose papers showing the actual receipt is more than the billed amount can be extrapolated in respect of the scrap sale of the same item and not to the other items. Further the date of scrap sale as found in the loose papers is also a relevant factor to ascertain the said transaction belongs to the lot of the scrap sale and rate prevailing during the said period. Therefore, the rate of a particular item of scrap sale as found in the loose papers and the....
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.... parties @ 22.25%. This rate of difference was applied by the AO on the total freight charges of Rs. 32,50,451/- and arrived at total difference amount of Rs. 7,23,225/-. Since an amount of Rs. 1,37,902/- is found from the loose papers being difference between the agreed rate and the expenses claimed in the books was already surrendered by the assessee, therefore, the AO has made the addition of Rs. 5,85,323/-. The assessee has objected to the extrapolating of this difference to the entire freight charges which is accepted by the ld. CIT (A) and deleted the said addition. 13.1. Having considered the facts and circumstances of the case, when the assessee has admitted the over-inflated claim of freight charges as found in the loose papers....
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.... impounded incriminating material was accepted by the assessee. Therefore, based on the incriminating material, the Tribunal has set aside the issue to the record of the AO for proper verification and then apply the same rate in respect of the scrap sale made by the assessee to the said party and cannot be expended to the sale made to the other parties. Similarly, in case of freight charges, the assessee has accepted the difference of the freight bill and actual expenditure as reproduced in para 13 of the impugned order and this is not a single isolated transaction but these are number of transactions. Therefore, the Tribunal found it proper that the freight charges paid to one party in respect of which the impounded material has shown the ....