Technotex Specialities Pvt. Ltd.,, Gandhinagar v. The ACIT, Gandhinagar Circle,, Gandhinagar

ITA 1477/AHD/2015 | 2010-2011
Pronouncement Date: 27-11-2017 | Result: Dismissed

Appeal Details

RSA Number 147720514 RSA 2015
Assessee PAN AADCT1264F
Bench Ahmedabad
Appeal Number ITA 1477/AHD/2015
Duration Of Justice 2 year(s) 6 month(s) 2 day(s)
Appellant Technotex Specialities Pvt. Ltd.,, Gandhinagar
Respondent The ACIT, Gandhinagar Circle,, Gandhinagar
Appeal Type Income Tax Appeal
Pronouncement Date 27-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 27-11-2017
Assessment Year 2010-2011
Appeal Filed On 25-05-2015
Judgment Text
.. IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH AHMEDABAD BEFORE SHRI N.K. BILLAIYA ACCOUNTANT MEMBER & SHRI S.S. GODARA JUDICIAL MEMBER ./ I.T.A. NO.1477/AHD/2015 ( / ASSESSMENT YEAR : 2010-11) TECHNOTEX SPECIALTIES PVT.LTD. BLOCK NO.2100 OPP.TEXEL INDS. SANTEJ-KHARAJ ROAD SANTEJ-382 721 TAL: KALOL GANDHINAGAR / VS. THE ACIT GANDHINAGAR CIRCLE GANDHINAGAR ./ ./ PAN/GIR NO. : AADCT 1264 F ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : -NONE- / RESPONDENT BY : PRAJNA PARAMITA SR.DR / DATE OF HEARING 16/11/2017 !'# / DATE OF PRONOUNCEMENT 27/11/2017 / O R D E R PER S.S. GODARA JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2010- 11 IS DIRECTED AGAINST THE CIT(A)-GANDHINAGARS ORDER DATED 06/02 /2015 PASSED IN CASE NO.CIT(A)/GNR/26/2013-14 UPHOLDING ASSESSING OFFICE RS ACTION MAKING ADDITION OF UNDERVALUATION OF STOCK AMOUNTIN G TO RS.3 06 643/- ITA NO.1477/AHD /2015 TECHNOTEX SPECIALTIES P.LTD. VS.ACIT ASST.YEAR 2010-11 - 2 - IN ASSESSMENT ORDER DATED 25/02/2013 IN PROCEEDING UNDER SECTION 143(3) OF THE INCOME TAX ACT 1961. 2. CASE CALLED TWICE. NONE APPEARS AT ASSESSEES B EHEST. IT EMERGES FROM THE CASE FILE THAT THE REGISTRY HAS BEEN ISSUI NG NOTICE TO THE ASSESSEE QUA VARIOUS INSTANCES OF HEARING. IT HAS NEVER COM E PRESENT NOR HAS ANYONE FILED POWER OF ATTORNEY. WE THEREFORE PROC EED EX-PARTE AGAINST THE ASSESSEE. 3. A PERUSAL OF THE INSTANT CASE FILE REVEALS THAT THE CIT(A) HAS UPHELD THE ASSESSING OFFICERS ACTION MAKING THE IM PUGNED ADDITION AS FOLLOWS:- 8. FOURTH GROUND OF APPEAL IS AGAINST THE ACTION OF THE AO IN MAKING ADDITION OF RS.3 06 643/- FOR UNDERVALUATION OF CLO SING STOCK. 8.1. THE AO DURING THE COURSE OF ASSESSMENT PROCEE DINGS NOTICED THAT THERE WAS UNDER VALUATION OF CLOSING STOCK OF BINDE RS BY RS.2 27 403/- AND FURTHER VARIATION OF RS.79 240/- IN DIBASIC MAT ERIALS; TOTALING TO RS.3 06 643/- SPECIFIC DETAILS WERE CALLED FOR BY T HE AO IN THIS REGARD. THE ARGUMENTS PLACED BEFORE THE AO BY THE APPELLANT WAS NOT ACCEPTABLE AND AO MADE THE ADDITION OF RS.3 06 643/ -. ON THE OTHER HAND APPELLANT CONTENDED THAT AO HAS T AKEN AVERAGE RATE OF SALE OF BINDERS BY DIVIDING THE YEA RLY SALES AMOUNT OF BINDERS BY YEARLY QUANTITIES OF BINDERS SOLD AND A PPLIED THIS AVERAGE RATE ON CLOSING STOCK QUANTITY OF BINDERS AND ARRIV ED AT THE AVERAGE ITA NO.1477/AHD /2015 TECHNOTEX SPECIALTIES P.LTD. VS.ACIT ASST.YEAR 2010-11 - 3 - SALES PRICE OF BINDERS OF CLOSING STOCK. THEREAFTER THE AO REDUCED FROM THAT THE OVERALL G.P. RATIO OF THE BUSINESS I.E. 17 .17% (AS REPORTED IN TAX AUDIT REPORT) AND ARRIVED AT THE VALUATION OF B INDERS WHICH HAS RESULTED IN ILLOGICAL AND UNJUSTIFIED INCREASE IN V ALUATION OF BINDERS BY RS.2 27 403/-. IN THIS RESPECT APPELLANT CONTENDE D THAT IT MANUFACTURES 9 DIFFERENT TYPES OF BINDERS HAVING DIFFERENT COST OF PRODUCTION VARYING FROM RS.25/- TO RS.58/- PER KG. IT IS ALSO BROUGHT TO MY NOTICE THAT IN THE CLOSING STOCK ALSO THERE WERE DIFFERENT TYPES OF B INDERS HAVING DIFFERENT COST OF PRODUCTION AS WELL AS DIFFERENT PROFITABILI TY. THE OVERALL G.P. RATE OF THE BUSINESS CANNOT BE APPLIED FOR VALUATIO N PURPOSE OF ALL TYPES OF BINDERS. APPELLANT CONTENDED THAT AO HAS NOT DIS PUTED THEIR VALUATION OF ANY OF THE INDIVIDUAL ITEM OF BINDERS. SIMILARLY WITH REGARD TO THE DIBASIC MATERIALS IT IS STATED AO HAS TAKEN AVERAGE RATE OF PURCHASE OF DIBASIC MATERIALS BY DIVIDING YEARLY PURCHASE VALUE OF DIBASIC MATERIALS BY YEARLY QUANTITY OF DIBASIC MAT ERIALS PURCHASED AND APPLIED THE AVERAGE RATE ON CLOSING STOCK OF DIBASI C MATERIALS WHICH HAS RESULTED IN ILLOGICAL AND UNJUSTIFIED INCREASE IN V ALUATION OF DIBASIC MATERIALS BY RS.79 240/-. ON EXAMINATION OF THE ENTIRE FACTS OF THE MATTER I T IS SEEN THAT THE AO HAS NOT DOUBTED THE METHOD ADOPTED BY THE A PPELLANT FOR ARRIVING AT THE CLOSING STOCK. IN THE APPELLATE PRO CEEDINGS APPELLANT BEFORE ME HAS NOT BROUGHT OUT HOW THE CLOSING STOCK FIGURES WERE ARRIVED WITH ANY EVIDENCES. NO PURCHASE BILLS OR SA LES BILLS HAS BEEN PRODUCED EITHER BEFORE THE AO DURING THE ASSESSMENT PROCEEDINGS OR BEFORE THE UNDERSIGNED DURING THE APPELLATE PROCEED INGS. IN SUCH FACTS OF THE CASE THE CONTENTION OF THE APPELLANT CANNOT BE ALLOWED AND THEREFORE THE ADDITION MADE BY THE AO OF RS.3 06 6 43/- FOR UNDERVALUATION OF CLOSING STOCK IS HEREBY CONFIRMED AND THE RELEVANT GROUND OF APPEAL IS REJECTED. HOWEVER THE AO IS DIRECTED TO ENHANCE THE OPENING STOCK ACCORDINGLY IN THE SUBSEQUENT YEAR. 4. HEARD LEARNED DEPARTMENTAL REPRESENTATIVE STRONG LY ARGUING IN FAVOUR OF THE IMPUGNED ADDITION. IT IS EVIDENT TH AT THE SAID ADDITION HAS ITA NO.1477/AHD /2015 TECHNOTEX SPECIALTIES P.LTD. VS.ACIT ASST.YEAR 2010-11 - 4 - ARISEN ON ACCOUNT OF ASSESSEES FAILURE IN PROVIDIN G EXACT DETAILS OF NINE DIFFERENT TYPES OF BINDERS WHICH MADE THE ASSESSIN G OFFICER TO ADOPT AVERAGE PRICING FORMULAS AS WELL AS LACK OF CLOSING STOCK FIGURES WITH THE HELP OF PURCHASE OR SALE BILLS. THESE CRUCIAL FIND INGS HAVE GONE UNREBUTTED IN ASSESSEES PLEADINGS. WE THEREFORE F IND NO MERIT IN ASSESSEES INSTANT APPEAL. THE IMPUGNED ADDITION I S CONFIRMED ACCORDINGLY. 4. THIS ASSESSEES APPEAL IS DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 27 / 1 1 /201 7 SD/- SD/- ( N.K. BILLAIYA ) ( S.S. GODARA ) ACCOUNTANT MEMBER JU DICIAL MEMBER AHMEDABAD; DATED 27/ 11 /2017 &.. .(../ T.C. NAIR SR. PS !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. )*+ / CONCERNED CIT 4. ( ) / THE CIT(A)-GANDHINAGAR 5. /01 ((*+ *+# ) / DR ITAT AHMEDABAD 6. 145 6 / GUARD FILE. / BY ORDER / ( //TRUE COPY// / ( DY./ASSTT.REGISTRAR) / ITAT AHMEDABAD