The ACIT, Circle 2, RAJKOT-GUJARAT v. M/s Patidar Oil Cake Industries, Dhoraji

ITA 1145/RJT/2010 | 2007-2008
Pronouncement Date: 07-01-2011 | Result: Dismissed

Appeal Details

RSA Number 114524914 RSA 2010
Assessee PAN AACFP4742L
Bench Rajkot
Appeal Number ITA 1145/RJT/2010
Duration Of Justice 4 month(s) 6 day(s)
Appellant The ACIT, Circle 2, RAJKOT-GUJARAT
Respondent M/s Patidar Oil Cake Industries, Dhoraji
Appeal Type Income Tax Appeal
Pronouncement Date 07-01-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted SMC
Tribunal Order Date 07-01-2011
Assessment Year 2007-2008
Appeal Filed On 31-08-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH SMC RAJKOT BEFORE SHRI A.L. GEHLOT (AM) I.T.A. NO. 1145/RJT/2010 (ASSESSMENT YEAR 2007-08) ACIT CIR.2 VS M/S PATIDAR OILCAKE INDUSTRIES RAJKOT POST BOX NO.54 NEAR POWER HOUSE DHORAJI-360 410 PAN : AACFP4742L (APPELLANT) (RESPONDENT) C.O. NO.54/RJT/2010 (ARISING OUT OF I.T.A. NO. 1145/RJT/2010) (ASSESSMENT YEAR 2007-08) M/S PATIDAR OILCAKE INDUSTRIES VS THE ACIT CIR.2 DHORAJI RAJKOT (CROSS OBJECTOR) (RESPONDENT) REVENUE BY : SHRI SL MEENA ASSESSEE BY : SHRI RM RINDANI O R D E R A.L. GEHLOT : THIS APPEAL BY REVENUE AND CROSS OBJE CTION BY ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A)-III RAJKOT DATED 14-06 -2010 FOR THE ASSESSMENT YEAR 2007-08. 2. THE REVENUE HAS RAISED THE FOLLOWING EFFECTIVE G ROUND OF APPEAL: (1) THE LD.CIT(A)-III RAJKOT HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.52 44 064/- MADE ON ACC OUNT OF LOW RECOVERY OF GROUND NUT OIL YIELD AND SUPPRESSED PRO DUCTION THEREOF. 3. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF DE-OI L CAKE POWER FROM GROUND NUT OIL CAKE BY SOLVENT EXTRACTION AND ALSO RUNNING AN OIL MILL AND VEGETABLE PLANT IN DHORAJI. SEEDS ARE CRUSHED IN O IL MILL AND PRODUCT AS OIL AND OIL CAKE OBTAINED. IT FILED ITS RETURN OF INCOME S HOWING TOTAL LOSS OF RS.53 79 000 ITA NO.1145/RJT/2010 CO 54/RJT/2010 2 ON 27-09-2007 FOR THE ASSESSMENT YEAR UNDER CONSIDE RATION. THE ASSESSEE HAS DECLARED A GROSS PROFIT OF RS.35 72 930 OUT OF A TO TAL TURNOVER OF RS. 11 68 59 538 WHICH WORKED OUT TO 3.05% AS AGAINST 6.35% SHOWN IN THE IMMEDIATELY PRECEDING YEAR. THE ASSESSING OFFICER ON THE BASIS OF INFORMATIONS ON THE BASIS OF SURVEY IN EARLIER YEARS NOTICED THAT ONLY 47.24 % YIELD IS SHOWN FROM GROUND NUT WHEREAS AS PER THE LABORATORY RECORD THE PERCE NTAGE IS 48% TO 52%. THE LABORATORY ASSISTANT OF THE ASSESSEE WAS QUESTIONED ON THIS ACCOUNT WHO STATED THAT GENERALLY THE YIELD OF OIL FROM GROUND NUT IS 47% TO 52% AND SOMETIMES IT COMES DOWN TO 46% TO 53%. THE ACCOUNTANT OF THE AS SESSEE WAS ALSO CROSS EXAMINED WHO STATED THAT THE YIELD FROM GROUND NUT SHOULD BE 48%. THE ASSESSEE FURNISHED A CERTIFICATE OF ANALYSIS (LABOR ATORY TEST REPORT) AS PER WHICH THE YIELD PERCENTAGE IS BETWEEN 42% TO 51%. THE ASSESSING OFFICER DISCARDED THIS CERTIFICATE STATING THAT THE ASSESSE E HAS FURNISHED A REPORT FAVOURING THE ASSESSEE. ACCORDING TO HIM AS PER SO MA CERTIFICATE THE YIELD IN SAURASHTRA IS BETWEEN 42% TO 52%. THE ASSESSING OF FICER ALSO REJECTED THE CONTENTION OF THE ASSESSEE THAT THERE CANNOT BE ANY POSSIBILITY OF GETTING MORE THAN 34.85% OF OIL FROM GROUND NUT EXPELLER CRUSHIN G FOR OIL MILLS PLANT AS ACCORDING T HIM THE AUDIT REPORT QUALIFIED THAT THE YIELD OF GROUND NUT OIL IS 28.35% FROM GROUND NUT PLUS 6.77% SEGN REFINED OIL MAKING THE TOTAL YIELD OF GROUND NUT OIL TO 35.12% THE ASSESSING OFFICER THEREFORE ON FINDING THAT THE PERCENTAGE OF HUSK IS 18.88% WORKED OUT THE YIELD OF GROUND NUT O IL AS FOLLOWS: GROUNDNUT 100 KG 100% LESS: HUSK RATIO 18.88% AS PER QUANTITY DETAILS SUBMITTED AS PER AUDIT REPORT 18.88% GROUNDNUT SEEDS 81.12% PRODUCTION OF OIL AS PER SOMAS REPORT (48% X 81.12%) 38.94% PRODUCTION OF OIL AS PER SOMAS REPORT 48.00% (48% X 81.12%) 38.94% ACCORDINGLY THE ASSESSING OFFICER PROPOSED FOR ADDI TION BY ADOPTING THE ABOVE YIELD RATE OF 38.94%. REJECTING THE EXPLANATIONS O F THE ASSESSEE WHICH IS ITA NO.1145/RJT/2010 CO 54/RJT/2010 3 RECORDED AT PARAGRAPH 4.6 ON PAGES 3 TO 6 OF THE AS SESSMENT ORDER AND FOR THE REASONS MENTIONED AT PARAGRAPH 4.7 TO 4.10 THE ASSE SSING OFFICER HELD THAT THE YIELD OF GROUND NUT OIL COMES TO 38.94% WHEREAS THE ASSESSEE HAS SHOWN THE SAME AT 35.26% AND THEREBY SUPPRESSED THE PRODUCTIO N BY 3.68% (38.94% - 35.26%). THE ASSESSING OFFICER ACCORDINGLY MADE AN ADDITION OF RS.52 44 064 ON THE FOLLOWING BASIS: TOTAL GROUNDNUT CONSUMED : 2753129 KGS SUPPRESSION OF OIL PRODUCTION AS ABOVE : (3.68%) QUANTITY OF SUPPRESSION OF OIL PRODUCTION (3.68% OF 2753129 KG) 101315 KGS TOTAL VALUE OF SALE PRICE OF OIL AS PER AUDIT REPORT AS PER SCHEDULE-10 : RS.4 80 74 626/ - QUANTITY OF OIL SALE AS PER AUDIT REPORT AS PER ANNEXURE ATTACHED TO 3CD FOR FINISHED PRODUCTS / BYE-PRODUCTS : 928.642 AVERAGE SALE PRICE OF PER KG.OIL : RS.51.76/- VALUE OF SUPPRESSION OF OIL PRODUCTION : (101315 KG. *RS.51.76 PER KG.) : RS. 52 44 064/- 4. THE ASSESSEE CONTESTED THE ADDITION BEFORE CIT(A ) AND REITERATED THE SUBMISSIONS ADVANCED BEFORE THE ASSESSING OFFICER. THE CIT(A) FOLLOWING HIS ORDERS FOR ASSESSMENT YEARS 2003-04 TO 2006-07 WHER E SIMILAR ADDITIONS WERE MADE AS ALSO BY FOLLOWING THE DECISIONS OF THE ITAT RAJKOT BENCH FOR ASSESSMENT YEARS 2006-07 2005-06 AND 2003-04 HAS D ELETED THE ADDITION. AGGRIEVED THE REVENUE IS IN APPEAL BEFORE THE TRIB UNAL. 5. THE LD.AR AT THE OUTSET POINTED OUT THAT ON IDE NTICAL SET OF FACTS THE ISSUE HAS BEEN DECIDED BY THE TRIBUNAL; IN EARLIER YEARS IN FAVOUR OF THE ASSESSEE. THE LD.AR FILED COPIES OF ORDERS OF ITAT FOR ASSESSMENT YEAR 2006-07 IN ITA NO.409/RJT/2009 ORDER DATED 30 TH DEC.2009; FOR AY 2004-05 IN ITA NO.57/RJT/2008 ORDER DATED 27-09-2010; AY 2003-04 I N ITA NO.74/RJT/2007 & ITA NO.1145/RJT/2010 CO 54/RJT/2010 4 198/RJT/2007 DT 24-04-2009. THE LD.AR SUBMITTED TH AT THE CIT(A) HAS ALSO FOLLOWED THE ABOVE ORDERS OF THE TRIBUNAL WHILE DEL ETING THE ADDITION BY OBSERVING AS UNDER: 3.2.. I HAVE ADOPTED SAME VIEW ON SIMILAR F ACTS IN THE APPELLANTS APPEALS FOR THE ASSESSMENT YEARS 20 03-04 TO 2006- 07 AND HAS DELETED THE ADDITIONS MADE ON ACCOUNT OF SUPPRESSION F OIL PRODUCTION BASED ON YIELD. FURTHER IT IS FOUN D THAT THE HONBLE ITAT RAJKOT BENCH IN THE APPELLANTS OWN CASE FOR T HE ASSESSMENT YEARS 2006-07 2005-06 AND 2003-04 HAS CONFIRMED TH E CIT(A)S ORDER N SAME ISSUE AND HAS DELETED THE ADDITION MAD E BY THE ASSESSING OFFICER. CONSIDERING ALL ABOVE FACTS AND DECISION OF HONBLE ITAT RAJKOT BENCH THE ADDITION MADE THIS Y EAR IS ALSO ORDERED TO BE DELETED. APPELLANT GETS RELIEF ACCOR DINGLY. THIS GROUND OF APPEAL IS ALLOWED. THE LD.DR DID NOT DISPUTE THE FACTS OF THE CASE. 6. I HAVE HEARD THE LEARNED REPRESENTATIVES OF THE PARTIES. SINCE FACTS OF THIS YEAR UNDER CONSIDERATION ARE IDENTICAL TO THE FACTS OF EARLIER YEARS I FIND THAT THE CIT(A) HAS RIGHTLY FOLLOWED THE ORDERS OF EARLIER Y EARS OF ITAT IN THE LIGHT OF THAT I DO NOT FIND ANY INFIRMITY IN THE ORDER OF CIT(A). 7. THE CROSS OBJECTION FILED BY THE ASSESSEE IS BAR RED BY LIMITATION BY 39 DAYS. THE ASSESSEE DID NOT FILE ANY CONDONATION AP PLICATION. AND THAT THE LD.AR HAS ALSO NOT PRESSED THE CROSS OBJECTION. AS THE C ROSS OBJECTION IS IN SUPPORT OF THE ORDER OF CIT(A) IN THE LIGHT OF THE FACT THE CROSS OBJECTION OF THE ASSESSEE IS DISMISSED IN LIMINE. 8. IN THE RESULT THE APPEAL FILED BY THE REVENUE I S DISMISSED AND THE CROSS OBJECTION FILED BY THE ASSESSEE IS DISMISSED IN LIM INE. ORDER PRONOUNCED IN THE OPEN COURT ON 07-01-2011. SD/- (A.L. GEHLOT) ACCOUNTANT MEMBER RAJKOT DT : 07 TH JANUARY 2011 ITA NO.1145/RJT/2010 CO 54/RJT/2010 5 PK/- COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A)-III RAJKOT 4. THE CIT-II RAJKOT 5. THE DR (TRUE COPY) BY ORDER ASSTT.REGISTRAR ITAT RAJKOT