ACIT, Bangalore v. M/s. Pankaj Agencies, Bangalore

ITA 1363/BANG/2008 | 2005-2006
Pronouncement Date: 22-01-2010 | Result: Allowed

Appeal Details

RSA Number 136321114 RSA 2008
Bench Bangalore
Appeal Number ITA 1363/BANG/2008
Duration Of Justice 1 year(s) 2 month(s) 11 day(s)
Appellant ACIT, Bangalore
Respondent M/s. Pankaj Agencies, Bangalore
Appeal Type Income Tax Appeal
Pronouncement Date 22-01-2010
Appeal Filed By Department
Order Result Allowed
Bench Allotted A
Tribunal Order Date 22-01-2010
Date Of Final Hearing 07-01-2010
Next Hearing Date 07-01-2010
Assessment Year 2005-2006
Appeal Filed On 11-11-2008
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI K.P.T. THANGAL VICE PRESIDENT AND SHRI A. MOHAN ALANKAMONY ACCOUNTANT MEMBER ITA NO. 1287/BANG/08 ASSESSMENT YEAR : 2005-06 M/S. PANKAJ AGENCIES NO.142 R.V. ROAD V.V. PURAM BANGALORE 560 004. : APPELLANT VS. THE ADDL. COMMISSIONER OF INCOME TAX RANGE 10 BANGALORE. : RESPONDENT ITA NO. 1363/BANG/08 ASSESSMENT YEAR : 2005-06 THE ADDL. COMMISSIONER OF INCOME TAX RANGE 10 BANGALORE. : APPELLANT VS. M/S. PANKAJ AGENCIES NO.142 R.V. ROAD V.V. PURAM BANGALORE 560 004. : RESPONDENT ASSESSEE BY : SHRI D. VINAY REVENUE BY : SMT. JACINTA ZIMIK VASHAI ITA NO.1287 & 1363/BANG/ 08 PAGE 2 OF 10 O R D E R PER A. MOHAN ALANKAMONY ACCOUNTANT MEMBER THESE ARE TWO APPEALS PREFERRED (I) BY THE ASSE SSEE M/S. PANKAJ AGENCIES - AND THE ANOTHER (II) BY THE REVENUE BO TH ARE DIRECTED AGAINST THE ORDER OF THE LD. CIT (A) V BANGALORE FOR THE ASSESSMENT YEAR 2005- 06. 2. THE ASSESSEE FIRM (THE ASSESSEE IN SHORT ) HAS RAISED FOUR GROUNDS OF APPEAL. HOWEVER ON A PERUSAL OF THE SAME THE SUBSTANCE OF THE ISSUE IS CONFINED TO THE LD. CIT(A) OUGHT NOT TO HAVE CONFIRMED THE ADD ITION OF RS.10.86 LAKHS BEING CLOSING STOCK VALUATION OF VIN YL AND LAMINATES. 3. ON THE OTHER HAND THE REVENUE IN ITS GROUNDS OF APPEAL HAS RAISED SEVEN GROUNDS. ON A CLOSE SCRUTINY OF THE SAME TH E GIST OF THE GRIEVANCE OF THE REVENUE IS THAT THE CIT(A) ERRED IN REDUCING THE INCOME FROM RS.99 .54 LAKHS TO RS.38.41 LAKHS WITHOUT CONSIDERING THE FACT THAT TH E REDRAWN TRADING ACCOUNT WAS BASED ON THE FIGURES OF SALES PURCHASE S O.S. & C.S SUBMITTED BY THE ASSESSEE DURING THE ASSESSMENT PRO CEEDINGS IN THE FORM OF STOCK SUMMARY STATEMENT. 4. AS THE ISSUES RAISED IN THESE APPEALS ARE PERTAI NING TO THE SAME ASSESSEE AS WELL AS THE ASSESSMENT YEAR BEING SAME FOR THE SAKE OF CONVENIENCE BOTH THE APPEALS ARE CONSIDERED TOGETH ER AND DISPOSED OFF IN THIS COMMON ORDER. 5. THE HISTORY OF THE ISSUE IN BRIEF IS THAT THE ASSESSEE WAS A WHOLE- SALE DEALER IN HARDWARE AND WOOD. FOR THE ASSESSME NT YEAR UNDER ITA NO.1287 & 1363/BANG/ 08 PAGE 3 OF 10 DISPUTE THE ASSESSEE HAD FURNISHED ITS ROI ON 25.1 0.05 ADMITTING A TOTAL INCOME OF RS.27.54 LAKHS. DURING THE COURSE OF ASS ESSMENT PROCEEDINGS THE ASSESSEE SAID TO HAVE PRODUCED COMPUTERIZED ACC OUNTS AND A CD CONTAINING THE ENTIRE RECORDS FOR THE YEAR TOGETHER WITH THE MONTH-WISE PURCHASES SALES LEDGER VARIOUS EXPENSES INCURRED SUNDRY CREDITORS ETC. AFTER SCRUTINIZING THE ACCOUNTS THE AO HAD SENT A PROPOSAL - WORKING OF PEAK DEFICIT STOCK OF RS.5031074/- AS PER THE BOOKS PRODUCED - TO TREAT THE SAME AS UNEXPLAINED INVESTMENTS U/S 69 OF THE ACT. 5.1 THE ASSESSEE HAD IN ITS REBUTTAL CLAIMED TH AT MOST OF THE BUSINESS WAS ON THE SALE OF WOOD WHERE THE MARGIN WAS LESS T HAN 2.5% AND THUS ADOPTING THE GP AT 12.06% WAS EXTREMELY ON THE HIGH ER SIDE AND WITH REGARD TO PURCHASE OF 14171 UNITS AT RS.599/- AMO UNTING TO RS.85.02 LAKHS AND SALE OF 14168 UNITS @ RS.138/UNIT AMOUNTI NG TO RS.19.67 LAKHS RESULTING IN A LOSS OF RS.65.L34 LAKHS UNDER THE HE AD VINYL AND LAMINATES THE ASSESSEE HAD REFUTED THE AOS CLAIM OF TRADING LOSS AS THE PURCHASE WAS FOR RS.776000 AND NOT FOR RS.850209/-. THUS T HE ASSESSEE HAD ARRIVED AT THE GP ON VINYL AND LAMINATES AT RS.1.91 LAKHS AND THE WOOD FORMS 45% OF THE TOTAL SALES AND DUE TO CONSUMABLE AND SHRINKING NATURE AND SPACE CONSTRAINT THERE WAS NO CLOSING STOCK OF WOOD. 5.2 BRUSHING ASIDE THE ASSESSEES EXPLANATION THE AO WENT AHEAD WITH THE WORKING OF GP OF RS.11 91 000/-. SINCE THERE W AS AN O.B ACCORDING TO THE AO 553941 CUBIT SFT. VALUED AT RS.46.47476 AND THE PURCHASE WERE TO THE EXTENT OF 235095000 AT 853.31 TOTAL VALUE OF R S.20065535. THE CORRESPONDING SALES WAS RS.2005196711/- THE AOS C ONCLUSION WAS THAT THE ACTUAL GP WAS AROUND 20%. THE ASSESSEES PLEA O F NO CLOSING STOCK OF ITA NO.1287 & 1363/BANG/ 08 PAGE 4 OF 10 WOOD WAS TURNED DOWN ON THE REASONING THAT THERE W AS A OB OF 533941 CUBIT SFT. THE CLOSING STOCK OF VINYL AND LAMINATE S @599 NEEDS EXPLANATION THE AO HAD RE-CASTED THE TRADING ACCOU NT AND ARRIVED AT THE GP AT RS.1.43 CRORES AND ALLOWED EXPENSES OF RS.44. 07 LAKHS CLAIMED IN THE P & L ACCOUNT AND THE DIFFERENCE OF RS.99.54 LA KHS WAS TREATED AS NET PROFIT AND BROUGHT UNDER THE TAX NET. 6. AGGRIEVED THE ASSESSEE TOOK UP THE ISSUES WITH THE LD. CIT (A) FOR RELIEF. AFTER DUE CONSIDERATION OF THE ASSESSEES ARGUMENTS REMAND REPORT OF THE AO AND THE REJOINDER OF THE ASSESSEE ON THE AOS REPORT THE LD. CIT (A) HAD OBSERVED THUS 8.1..FROM THE PARTICULARS FILED IT APPEARS THAT THE AO HAS MIS-TOOK THE FIGURE OF OPENING STOCK OF WOOD AS 553 941 CFT INSTEAD OF 53.3941 CFT. FURTHER EVEN FOR A MOMENT IF IT IS PRESUMED THAT THE OPENING STOCK OF WOOD IS 553941 CFT THEN THE IN FERENCE WOULD BE THAT THE PURCHASES WOULD RESULT TO RS.235095000/- A FTER CONSIDERING THE RATE PER UNIT VALUED FOR OPENING STOCK AND SALE S WOULD BE RS.2005196711/- AS AGAINST THE TOTAL YEARLY TURNOVE R OF RS.58882713.92 DECLARED BY THE APPELLANT. THIS CLE ARLY SHOWS THAT THERE CANNOT BE SUCH HUGE VARIATIONS WHICH IS NOTH ING BUT CLERICAL MISTAKE WHICH IS APPARENT ON THE FACE OF RECORD. A S MENTIONED BY THE APPELLANT IT WOULD ALSO REQUIRE HUGE INFRASTRU CTURE TO STOCK SUCH QUANTITY OF STOCK THAT MAY BE IMPOSSIBLE UNLESS THE RE IS SUCH KIND OF INFRASTRUCTURE FACILITY ETC. IT IS VERY CLEAR THAT THE AO HAS NOT TAKEN NOTE OF 55.3941 CFT WHICH WAS APPEARING IN THE STOC K SUMMARY AS ON 31.3.2005. THE AO HAS NOT DISPUTED THE CLOSING STO CK FIGURE OF 55.3941 CFT IN HIS REMAND REPORT. IN VIEW OF THIS THE APPELLANTS OPENING STOCK FIGURE AS SHOWN IN THE BOOKS OF ACCOU NT AND IN THE SUMMARY STATEMENT AS ON 31.3.05 HAS TO BE ACCEPTED AS CORRECT. I HOLD THAT THE ASSUMPTION MADE BY THE AO IN THIS REG ARD CANNOT BE SUSTAINED IN THE ABSENCE OF EVIDENCE AND MATERIAL O N RECORD.. 7. WITH REGARD TO THE ISSUE OF VINYL AND LAMINATES THE LD. CIT(A)S OBSERVATION WAS THAT ITA NO.1287 & 1363/BANG/ 08 PAGE 5 OF 10 9.3.THE AO IS RELYING ON A STOCK STATEMENT FILED BY THE APPELLANT DURING THE COURSE OF SCRUTINY. HOWEV ER GOING BY THE SAID STATEMENT THE PARTICULAR ITEM OF VINYL & LAMI NATES THE INWARDS VALUE IS SHOWN AS RS.8502009.40 OUTWARDS VALUE IS SHOWN AS RS.1967379 AND CLOSING STOCK VALUE IS SHOWN AS RS.1 799.87. THIS APPEARS TO BE WRONG SINCE RS.8502009.40 MINUS 19673 79 DOES NOT RESULT IN THE CLOSING STOCK VALUE SHOWN THEREIN. T HIS IMPLIES THERE IS AN ERROR IN THE STATEMENT FILED BY THE APPELLANT DU RING THE TIME OF SCRUTINY. THE SUBMISSION MADE BY THE APPELLANT IN THIS REGARD APPEARS THAT THE APPELLANT HAVE FILED AN INCORRECT STATEMENT DUE TO COMPUTER PROBLEM SINCE THEIR ACCOUNTS WAS COMPUTERI ZED. FURTHER GOING BY THE STATEMENT FILED BY THE APPELLANT BEFOR E ME THE VALUE OF CLOSING STOCK IN THIS ITEM IS RS.38898/-. THE APPE LLANT HAS NOT PRODUCED BOOKS OF ACCOUNTS OR ANY DOCUMENTARY EVIDE NCES TO PROVE THAT THERE WAS COMPUTER PROBLEM AND THE ACCOUNTS AN D THE STATEMENTS SUBMITTED BEFORE THE AO WERE INCORRECT A ND NOT TO BE CONSIDERED FOR THE PURPOSE OF ASSESSMENT. THE CLAI MS OF THE APPELLANT CANNOT BE ACCEPTED IN TOTO. IN VIEW OF T HE ABOVE IT IS NOT CORRECT ON THE PART OF THE AO TO REJECT THE GP RATE SHOWN BY THE APPELLANT WITHOUT REJECTING THE BOOKS OF ACCOUNTS. THE RECASTING OF THE TRADING ACCOUNT WAS DONE ON THE BASIS OF OPENIN G STOCK OF WOOD AND CLOSING STOCK OF VINYL AND LAMINATES. THE GP A DOPTED BY THE AO IS EXCESSIVE AND NO COMPARABLE CASES WERE GIVEN FOR ADOPTING THE SAID GP RATE. THE GP RATE ADOPTED BY THE AO CA NNOT BE SUSTAINED AS THE SAME IS DONE ON SURMISE AND CONJEC TURE. I HAVE HELD THAT THE OPENING STOCK OF WOOD HAS TO BE ACCEP TED AS SHOWN BY THE APPELLANT. BUT AS FAR AS THE CLOSING STOCK OF VINYL AND LAMINATES ARE CONCERNED THERE IS DISCREPANCY WHICH REQUIRES A DECISION. IN THIS CONNECTION THE AO IN THE REMAND REPORT POINTE D OUT THAT THE DISCREPANCY OF CLOSING STOCK WHICH IS TAKEN ON RECO RD. I AM THEREFORE OF THE OPINION THAT THE DIFFERENCE OF AM OUNT SHOWN BY THE APPELLANT IN THE TWO STATEMENTS BEFORE THE ASSESSIN G OFFICER AND APPELLATE AUTHORITY I.E. RS.1086838.06 (RS.2475485 .56 1388602.50) MAY BE TREATED AS UNEXPLAINED INCOME OF THE APPELLANT AS THE SAME WAS CREDITED IN THE BOOKS OF THE APPELL ANT. THE AO IS DIRECTED TO MODIFY THE INCOME OF THE APPELLANT AT R S.3841310/- AFTER REJECTING THE GP AT 21.73% ADOPTED BY THE AO AS MEN TIONED ABOVE. 8. AGGRIEVED BY THE FINDING OF THE LD. CIT(A) (I) THE ASSESSEE CAME UP WITH A GRIEVANCE THAT THE CIT(A) OUGHT NOT TO HAVE CONFIRMED THE ADDITION OF RS.10.8 6 LAKHS WITH REGARD TO CLOSING STOCK VALUATION OF VINYL AND LAMINATES; ITA NO.1287 & 1363/BANG/ 08 PAGE 6 OF 10 (II) ON THE OTHER HAND THE REVENUE HAS COME UP WITH A PLEA THAT THE CIT(A) ERRED IN REDUCING THE INCOME FROM RS.99 .54 LAKHS TO RS.38.41 LAKHS WITHOUT CONSIDERING THE FAC T THAT THE REDRAWN TRADING ACCOUNT WAS BASED ON THE FIGURES OF SALES PURCHASES O.S. & C.S SUBMITTED BY THE ASSESSEE DU RING THE ASSESSMENT PROCEEDINGS IN THE FORM OF STOCK SUMMARY STATEMENT. 8.1. DURING THE COURSE OF HEARING BEFORE US THE AR GUMENTS PUT-FORTH BY THE LD. AR ARE SUMMARIZED AS UNDER: (I) DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ENTIRE BOOKS OF ACCOUNT WITH SOFT COPIES OF THE SAME WERE PRODUCED. HOWEVER THE AO AFTER SCRUTINIZING THE BILL BOOKS COPIES OF PURCHASE INVOICES STOCK POSITION ETC. MADE AN ARB ITRARY ESTIMATE; (II) WHEN CERTAIN COMPUTER PRINTOUTS IN THE FORM OF BOOK S OF ACCOUNT WERE PRODUCED THE AO HAD REFUSED TO ACCEPT THEM AS BOOKS OF ACCOUNT. HOWEVER HE RESORTED TO ESTIMATE THE CLOSING STOCK BASED ON HIS OWN FORMULA AS OPENING STOCK + PURCHASES = TOTAL - COST OF SALES (SALES 12.162% O F SALES) = CLOSING STOCK; (III) THE AO HAD ADOPTED COST OF SALES TO BE SALES 12.1 62% OF SALES. HOWEVER THE ACTUAL COST OF SALES WAS DISCL OSED IN THE P & L ACCOUNT. IN THE NATURE OF BUSINESS OF THE AS SESSEE NO MANUFACTURING OR OTHER ACTIVITIES WERE INVOLVED TO CALCULATE/INCUR COST OF SALES EXPENDITURE. THIS ES TIMATE OF COST OF SALES ADOPTED BY THE AO HAD RESULTED IN NEG ATIVE CLOSING STOCK. (IV) THE ASSESSEE WAS FOLLOWING THE METHOD OF FIFO (FIRS T IN FIRST OUT) FOR THE PURPOSE OF CLOSING STOCK VALUATION FOR SOME ITEMS AS WAS IN THE CASE OF VINYL AND LAMINATES. THE REA SON BEING HUGE VARIATION IN THE RATES AT WHICH THESE ITEMS WE RE IMPORTED THE FIFO METHOD FOR VALUING THE SAID CLOS ING STOCK UNITS WAS ADOPTED I.E. ALL THE REMAINING UNITS WE RE TO BE VALUED AT RS.599/UNIT AND THE SAME WAS COMMUNICATED TO THE AO; (V) THE AO MISTOOK THE O.S OF 55.3941 CFT AS 553941 CFT AND VALUED THE SAME AT RS.4647 LAKHS AS AGAINST RS.4227 6/- ON THE BASIS OF THIS ASSUMPTION THE AO ARRIVED AT THE PUR CHASE OF RS.23.50 CRORES AND SALES OF RS.200.5 CRORES AS AGA INST THE TOTAL TURNOVER OF THE ASSESSEE WAS APPROXIMATELY AT RS.6 CRORES; ITA NO.1287 & 1363/BANG/ 08 PAGE 7 OF 10 (VI) IN RECASTING OF THE TRADING ACCOUNT THE AO HAD INC REASED THE SALES BY RS.58.05 LAKHS AND PURCHASES BY RS.44.21 L AKHS ON SURMISES AND FURTHER HE HAD REDUCED THE GP BY AN ALLOWABLE EXPENDITURE OF RS.44.07 LAKHS AND THEREBY ARRIVING AT A TAXABLE INCOME OF RS.99.54 LAKHS. (VII) IN RESPECT OF ADDITION OF RS.10.86 LAKHS CONFIRMED BY THE CIT(A) WAS WITHOUT ANY BASIS WHICH REQUIRES TO BE D ELETED. (VIII) HAD THE AO REDUCED THE GROSS PROFIT BY DIRECT EXPEN SES NAMELY CST PAID COOLI CHARGES TRANSPORTATION ETC . WHICH WERE ALLOWABLE DEDUCTIONS THE GP AS COMPUTED BY TH E AO WOULD BE REDUCED SUBSTANTIALLY. 8.1.1. TO SUPPORT HIS CLAIMS THE LD. A.R DURING THE COURSE OF HEARING HAD FURNISHED A PAPER BOOK CONTAINING 1 24 PAGES WHICH CONSISTS OF INTER ALIA COPIES OF (I) STOCK STATEM ENT (II) INVOICE FOR PURCHASE OF VINYL AND LAMINATES (III) P & L ACCOUNT ETC. 9. TO COUNTER THE ASSESSEES CLAIM THE LD. D.R CAM E UP WITH A SPIRITED ARGUMENT THAT THE CIT (A) ERRED : (I) IN REDUCING THE INCOME ASSESSED FROM RS.99.54 LAKHS TO RS.38.41 LAKHS WITHOUT CONSIDERING THE FACT THAT TH E REDRAWN TRADING ACCOUNT WAS BASED ON THE FIGURES OF SALES PURCHASES OPENING AND CLOSING STOCK SUBMITTED BY THE ASSESSEE ALONG WITH THE ROI AND DURING THE COURSE OF ASSESSMENT PR OCEEDINGS IN THE FORM OF STOCK SUMMARY STATEMENT; (II) IN NOT APPRECIATING THE FACT THAT NO GP RATE HAS BE EN APPLIED BY THE AO INSTEAD GP WAS WORKED AS A BALANCING FIG URE AFTER ADOPTING THE FIGURES OF PURCHASES SALES O.S AND C .S FURNISHED BY THE ASSESSEE; (III) IN NOT APPRECIATING THE PROFIT WORKING MADE BY THE AO AFTER CONSIDERING THE ASSESSEES OBJECTIONS; - THE AO DID NOT CONSIDER THE SALE AND PURCHASES OF V INYL AND LAMINATES SHOWN IN STOCK SUMMARY AND HAS ALSO GIVEN THE BENEFIT OF TELESCOPING; ITA NO.1287 & 1363/BANG/ 08 PAGE 8 OF 10 (IV) IN NOT CONSIDERING THE FACT THAT THE ASSESSEE HAD F AILED TO PROVE ANY OF THESE CONTENTIONS. THE GP ADOPTED FOR SHOWING NEGATIVE STOCK WAS THE ONE SHOWN BY THE ASSESSEE IN THE ACCOUNTS BUT DISPUTED THE SAME THAT IT CANNOT BE UNIFORMLY APPLIED. IF THAT BE SO THE ASSESSEE OUGHT TO HAVE SHOWN WHICH PRODUCTS EARNED PROFIT LESSER THAN THE AVERAGE GP; (V) IN ADOPTING A NEW CLOSING STOCK STATEMENT FILED BE FORE HIM WITHOUT ANY BASIS; & (VI) IN RESTRICTING THE ADDITION TO DIFFERENCE OF CLOSIN G STOCK AS SHOWN BEFORE HIM AND AS SHOWN IN THE ACCOUNTS. IN FACT THE BASIS FOR WORKING OF CLOSING STOCK SUBMITTED BEFORE HIM WAS NOT MADE CLEAR EITHER BY THE ASSESSEE OR BY THE CI T(A). 9.1 IN VIEW OF THE ABOVE IT WAS PLEADED THAT THE IMPUGNED ORDER OF THE LD. CIT(A) REQUIRES TO BE ANNULLED AND THAT OF THE AO BE SUSTAINED. 10. WE HAVE CAREFULLY EXAMINED THE RIVAL SUBMISSION S AND ALSO PERUSED THE RELEVANT RECORDS AND THE PAPER BOOK FURNISHED B Y THE LD. A.R. 10.1 AT THE OUTSET WE WOULD LIKE TO POINT OUT THA T THE AO HAD COMMITTED AN ERROR PERHAPS BY OVER-SIGHT IN ADOPTING THE OP ENING BALANCE OF 553941 CUBIC FEET OF WOOD INSTEAD OF 55.3941 CFT. [SOURCE: P 14 OF PB] AND ON THE BASIS OF WHICH CONSTRUCTED THE ASSESSMENT ORDER DT: 28.12.2007. HIS ALLEGATION WAS THAT THE ASSESSEE HAD NOT PRODUCED B OOKS OF ACCOUNT. HOWEVER THE ACIT C 10(1) VIDE HER LETTER DATED 2 .3.2009 HAD INFORMED THE ASSESSEE THAT THE FOLLOWING EIGHT FILES SUBMITTED BY YOU ON 31.1 0.2007 ARE RETURNED HEREWITH. KINDLY ACKNOWLEDGE THE RECEIPT. (I) PUR CHASE FILE 04-05 IN TWO VOLUMES; (II) PAYMENTS BY CHEQUE FILE 04-05 (III) SALES FILE 04-05 IN TWO VOLUMES; (IV) CASH PAYMENTS FILE 04-05 (V) SALES T AX FILE 04-05; & (VI) BANK STATEMENT 04.05. ITA NO.1287 & 1363/BANG/ 08 PAGE 9 OF 10 10.1.1. THIS GOES TO PROVE THAT ALL THE RELEVANT MA TERIALS WERE AT THE POSSESSION OF THE AO WHILE CONSTRUCTING HIS IMPUGNE D ORDER. 10.2 THE ASSESSEES MAIN CONTENTION WAS THAT TH E WOOD FORMS 45% OF THE TOTAL SALES AND DUE TO ITS PERISHABLE/SHRINKING NATURE AND STORAGE SPACE CONSTRAINTS THERE WAS NO CLOSING STOCK OF WOOD. 10.2.1 WITH REGARD TO THE PURCHASE VALUE OF VINYL AND LAMINATES THE AO IN HIS REMAND REPORT TO THE FIRST APPELLATE AUTH ORITY HAD MENTIONED THAT PAGE 5 PARA 3: AS PER THE COPY OF STOCK IN HAND THE STATEMENT FILED AT THE TIME OF HEARING THE PURCHASES VALUE OF VINYL AND L AMINATES FOR 142171 UNITS WAS SHOWN AT RS.8502009/- @ RS.599.96 AND THE SALE VALUE OF 14168 UNITS WAS SHOWN AT RS.967379.60 @ RS.138.86 THUS TH E ASSESSEE HAS SHOWN GROSS LOSS OF RS.6534630/-. A COPY OF THE STOCK IN HAND STATEMENT FILED DURING THE COURSE OF ASSESSMENT PROCEEDINGS IS ENCL OSED WHICH SHOWS THE ABOVE POSITION. THE SAME STATEMENT HAS BEEN FILED ALONG WITH THE RETURN OF INCOME. BUT THE STATEMENT FILED BEFORE THE APPELLA TE AUTHORITY IS DIFFERENT FROM THE ONE PRODUCED BEFORE THE ASSESSING OFFICER. 10.2.2 IN AN OVERALL CONSIDERATION OF THE FACTS AN D CIRCUMSTANCES OF THE ISSUES AS DISCUSSED IN THE FORE-GOING PARAGRAPH S WE ARE OF THE UNANIMOUS VIEW THAT THE ENTIRE ISSUES REQUIRE A COM PREHENSIVE CONSIDERATION AND THEREFORE THE MATTER [ASSESSEE S APPEAL AS WELL AS THE REVENUES APPEAL] IS REMITTED BACK ON THE FILE OF T HE AO WITH A SPECIFIC DIRECTION TO LOOK INTO ALL THE ASPECTS WHICH THE AS SESSEE HAD BROUGHT FORE ITA NO.1287 & 1363/BANG/ 08 PAGE 10 OF 10 BEFORE THE FIRST APPELLATE AUTHORITY AND BEFORE THI S BENCH AS WELL AND TO RECONSTRUCT THE ASSESSMENT AFRESH AFTER AFFORDING A REASONABLE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. IN THE MEANWHILE THE ASSESSEE THROUGH ITS COUNSEL IS ADVISED TO FURNISH ALL THE RELEVANT MATERIALS AT ITS POSSESSION WHICH WOULD FACILITATE THE AO TO CARRY OUT THE DIRE CTIONS OF THIS BENCH REFERRED SUPRA. IT IS ORDERED ACCORDINGLY. 11. IN THE RESULT THE APPEALS PREFERRED BY THE ASS ESSEE AS WELL AS THE REVENUE ARE TREATED AS PARTLY ALLOWED FOR STATISTIC AL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 22 ND DAY OF JANUARY 2010. SD/- SD/- ( K.P.T. THANGAL ) (A. MOHAN ALANKAMONY ) VICE PRESIDENT ACCOUNTANT MEMBER BANGALORE DATED THE 22 ND JANUARY 2010. DS/- COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT BANGALORE. 6. GUARD FILE (1+1) BY ORDER ASSISTANT REGISTRAR ITAT BANGALORE.