TaxTMI 
TaxTMI 
2020 (1) TMI 496
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....f Ground No.3 raised by the assessee in the original appeal, which reads as under:- "3. The learned CIT(Appeals) has erred in not considering the details produced about the sundry creditors and has given only a partial relief on the Unconfirmed creditors, to the extent of 7,12,004/- with respect to 16 creditors instead of the total relief as sought of Rs. 23,44,816/-, and the balance 32 creditors also being genuine." The Ld A.R submitted that the assessee was asked by the AO during the course of assessment proceedings to produce confirmation letters from outstanding sundry creditors. The assessee is acting as selling commission agent in onions on behalf of farmers from local and outside state and hence it took some time for the ....
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....t the assessee has already paid the outstanding balance in the succeeding year. Hence the same results in a mistake apparent from record. 4. On the contrary, the Ld D.R submitted that the Tribunal has taken a conscious view after appreciating all the evidences and contentions of the parties. Since a particular view has been taken by the Tribunal, the same cannot be considered as mistake apparent from record. He further submitted that the prayer made by the assessee in the miscellaneous petition would result in review of the order passed by the Tribunal, which is not permitted u/s 254(2) of the Act. 5. We have heard rival contentions and perused the record. The power given to the Tribunal u/s 254(2) of the Act is to rectify the mistake....
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.... of farmers, since credit sales by farmers is not an existing trade practice. Even though, an opportunity was provided to the assessee during the appellate proceedings and remand proceedings to prove the credit balances, yet the assessee could not produce any documents or confirmation from the creditors. Since some of the creditors have responded to the notices issued by the AO during the remand proceedings, the Ld CIT(A) has granted relief to the extent of 7.12 lakhs meaning thereby, the assessee could not prove the genuineness of the remaining creditors. Under these set of facts, we are of the view, that the Ld CIT(A) was justified in partially sustaining the addition made by the AO on this issue." 8. According to Ld A.R, the assessee ....
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....pportunity was provided to the assessee during the appellate proceedings and remand proceedings to prove the credit balances, yet the assessee could not produce any documents or confirmation from the creditors." Hence same needs to be modified. It can be noticed that the requirement of calling for a remand report has arisen only for the reason that the assessee has furnished confirmation letters before Ld CIT(A). The above said observation made by the Tribunal has not brought out the relevant facts correctly and the same has resulted in a mistake apparent from record. Accordingly, we substitute the above sentence in paragraph 7 of the order passed by the Tribunal with the following sentence. "Even though an opportunity was provi....