Shri Ganesh Shiv Parvati Steel P Ltd.,, Jalna v. Income-tax Officer,,

ITA 1731/PUN/2014 | 2010-2011
Pronouncement Date: 21-10-2016 | Result: Allowed

Appeal Details

RSA Number 173124514 RSA 2014
Assessee PAN AAICS8926J
Bench Pune
Appeal Number ITA 1731/PUN/2014
Duration Of Justice 2 year(s) 1 month(s) 4 day(s)
Appellant Shri Ganesh Shiv Parvati Steel P Ltd.,, Jalna
Respondent Income-tax Officer,,
Appeal Type Income Tax Appeal
Pronouncement Date 21-10-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 21-10-2016
Assessment Year 2010-2011
Appeal Filed On 16-09-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A PUNE PUNE BENCH A PUNE BEFORE MS. SUSHMA CHOWLA JM AND SHRI ANIL CHATURVEDI AM . / ITA NO. 1731 /PN/20 1 4 / ASSESSMENT YEAR: 20 1 0 - 11 SHRI GANESH SHIV PARVATI STEEL PVT. LTD. SHRI GANESH SHIV PARVATI STEEL PVT. LTD. D - 27 ADDITIONAL MIDC JALNA 431203 . / APPELLANT PAN: AA ICS8926J VS. THE INCOME TAX OFFICER WARD 1(3) JALNA . / RESPONDENT . . / ITA NO. 1827 /PN/201 4 / ASSESSMENT YEAR: 20 1 0 - 1 1 THE INCOME TAX OFFICER WARD 1(3) JALNA . / APPELLANT VS. SHRI GANESH SHIV PARVATI STEEL PVT. LTD. D - 27 ADDITIONAL MIDC D - 27 ADDITIONAL MIDC JALNA 431203 . / RESPONDENT PAN: AAICS8926J ASSESSEE BY : S HRI S.N. PURANIK REVENUE BY : NONE / DATE OF HEARING : 13 . 1 0 .201 6 / DATE OF PRONOUNCEMENT: 21 . 1 0 .201 6 ITA NO . 1731 / PN /201 4 ITA NO. 1827 /PN/201 4 SHRI GANESH SHIV PARVATI STEEL PVT. LTD. 2 / ORDER PER SUSHMA CHO WLA JM: THE CROSS APPEAL S FILED BY THE ASSESSEE AND THE REVENUE ARE AGAINST ORDER OF CIT( A ) AURANGABAD DATED 02 . 0 7 .201 4 RELATING TO ASSESSMENT YEAR 2010 - 11 AGAINST THE ORDER PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT 1961 (IN SHORT THE ACT) . 2. THE CROSS APPEALS FILED BY THE ASSESSEE AND THE REVENUE WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 3 . THE ASSESSEE IN ITA NO. 1731 /PN/201 4 HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : - 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED ON 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED ON FACTS AND IN LAW IN CONFIRMING THE ALLEGED SUPPRESSION OF SALES TO THE TUNE OF RS. 42 35 464/ - . AND CONFIRMING THE ADDITION TO THE EXTENT OF RS. 1 69 419/ - . 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ALSO ERRED ON FACTS AND IN LAW IN CONFIRMING THE ADDITION ON ACCOUNT OF UNDISCLOSED INVESTMENT FOR UNDISCLOSED TURNOVER TO THE EXTENT OF RS. 40 726/ - . 3. THE LEARNED CIT (A) FURTHER ERRED IN CONFIRMING THE ALLEGED SUPPRESSION OF SALES MERELY ON PRESUMPTION AND ASSUMPTION BASIS AND WITHOUT EVIDENCE OF PURCHASE OF RAW MATERIAL OR SALES OF FINISHED GOODS OUT OF BOOKS. 4. THE LEARNED CIT (A) FURTHER ERRED IN CONFIRMING THE ALLEGED SUPPRESSION OF PRODUCTS ON THE GROUNDS OF MONTHLY VARIATION IN CO NSUMPTION OF ELECTRICITY VIS - A - VIS PRODUCTION. 5. THE LEARNED CIT (A) FURTHER ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN HOLDING THAT THE BOOKS OF ACCOUNTS OF THE APPELLANT COMPANY ARE CORRECTLY REJECTED U/S 145 OF THE INCOME TAX ACT WIT HOUT ANY EVIDENCE OR FINDINGS AS HOW THE PROVISION OF SEC. 145 (3) ARE SATISFIED. 6. THE LEARNED CIT (A) FURTHER ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN MAKING AN ADDITION ON ACCOUNT OF ALLEGED SUPPRESSION OF SALES WITHOUT GIVING ANY SH OW CAUSE NOTICE TO THE APPELLANT COMPANY TO EXPLAIN THE FACTS AGAINST THE PROPOSED HUGE ADDITION ON THIS ACCOUNT WHICH IS AGAINST THE RULES OF NATURAL JUSTICE. 7. THE LEARNED CIT (A) FURTHER ERRED IN NOT FOLLOWING THE ORDER OF THE HON. ITAT PUNE IN THE CASE OF ACIT VS. M/S SRJ PEETY PVT LTD. (2011) 137 TTJ (PUNE) 627 ITAT PUNE WHEREIN THE ADDITION MADE ITA NO . 1731 / PN /201 4 ITA NO. 1827 /PN/201 4 SHRI GANESH SHIV PARVATI STEEL PVT. LTD. 3 ON THE ACCOUNT OF UNIT CONSUMPTION ON PRESUMPTION BASIS WAS DELETED. 4. THE REVENUE IN ITA NO.1 827 /PN/2014 HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : - 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE CIT(A) WAS JUSTIFIED IN ESTIMATING THE 800 UNITS OF ELECTRICITY PER METRIC TON FOR MANUFACTURING OF FINISHED GOODS OF TMT BARS AS AGAINST 188 UNITS ESTIMATED BY THE AO IGNORING THE FACT THAT MET ALLIC PROPERTIES REQUIRES FOR HEATING THE SIMILAR TEMPERATURE WHICH INVOLVED IDENTICAL PROCESS AND THE CONSUMPTION BY SMALL AND BIG MILLS. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE CIT(A) WAS JUSTIFIED IN QUANTIFYING THE PROFIT ON SUPPRESSED PRODUCTION @ 4% EVEN AFTER ACCEPTING THE FACT THAT THE BOOKS OF ACCOUNTS OF THE ASSESSEE WERE RIGHTLY REJECTED BY THE A O. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE WHETHER THE CIT(A) WAS JUSTIFIED IN NOT APPRECIATING THE FACT T HAT MANUFACTURING AND ADMINISTRATIVE EXPENSES ON THE UNACCOUNTED PRODUCTION WORKED OUT IN THE APPELLATE ORDER HAD ALREADY BEEN BORNE BY THE PRODUCTION SHOWN IN THE BOOKS OF ACCOUNT? 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE WHETHER THE CIT(A) WAS JUSTIFIED IN NOT APPRECIATING THE FACT THAT THE WORKING CAPITAL IS REQUIRED FOR PURCHASES OF RAW MATERIAL AND DAY TO DAY ACTIVITIES FOR PRODUCTION OF GOODS 5. THE ORDER OF THE AO BE RESTORED AND THAT THE CIT(A) BE VACATED. 5. THE ASSESSEE IS AGG RIEVED BY THE ORDER OF CIT(A) IN CONFIRMING THE ALLEGED 5. THE ASSESSEE IS AGG RIEVED BY THE ORDER OF CIT(A) IN CONFIRMING THE ALLEGED SUPPRESSION OF SALES TO THE TUNE OF RS.42 35 464/ - AND CONFIRMING THE ADDITION TO THE EXTENT OF RS. 1 69 419/ - . THE ASSESSEE IS ALSO AGGRIEVED BY THE ADDITION MADE ON ACCOUNT OF UNDISCLOSED INVESTMENT S FOR UNDISCLOSED TURNOVER TO THE EXTENT OF RS. 40 726/ - . THE ASSESSEE IS ALSO IN APPEAL AGAINST REJECTION OF BOOKS OF ACCOUNT UNDER SECTION 145 OF THE ACT AND MAKING OF ADDITION ON ACCOUNT OF ALLEGED SUPPRESSION OF SALES. 6. THE REVENUE ON THE OTHER HAND IS IN APPEAL AGAINST THE ORDER OF CIT(A) IN ESTIMATING 800 UNITS OF ELECTRICITY PER METRIC TON FOR MANUFACTURING OF FINISHED GOODS OF TMT BARS AS AGAINST 188 UNITS ESTIMATED BY THE ASSESSING OFFICER. THE REVENUE IS AGGRIEVED BY THE ORDER OF CIT(A) IN QU ANTIFYING THE PROFI T ON SUPPRESSED PRODUCTION @ 4%. FURTHER THE REVENUE IS AGGRIEVED BY THE ORDER OF CIT(A) IN NOT APPRECIATING THAT THE WORKING CAPITAL WAS REQUIRED FOR PURCHASE OF RAW MATERIAL AND DAY - TO - DAY ACTIVITY FOR PRODUCTION OF GOODS. ITA NO . 1731 / PN /201 4 ITA NO. 1827 /PN/201 4 SHRI GANESH SHIV PARVATI STEEL PVT. LTD. 4 7. THE LEA RNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT THE ISSUE ARISING IN THIS CROSS APPEALS IS SQUARELY COVERED BY VARIOUS ORDERS OF TRIBUNAL. IT WAS FURTHER POINTED OUT BY THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE THAT THERE IS NO ALLEGATION OF CLANDESTINE REMOVAL OF GOODS WITHOUT PAYMENT OF EXCISE DUTY AGAINST THE ASSESSEE BY THE EXCISE DEPARTMENT AND NO PHYSICAL VERIFICATION HAD BEEN CARRIED OUT EITHER BY THE EXCISE OR INCOME TAX DEPARTMENT AS TO CONSUMPTION OF ELECTRIC UNITS P ER METRIC TON. FURTHER THE ASSESSING OFFICER ALSO SUBMITTED THAT NO PETITION HAD BEEN FILED BEFORE THE SETTLEMENT COMMISSION OR THE COMMISSIONER OF EXCISE HENCE THERE IS NO MERIT IN THE SAID ADDITION MADE IN THE HANDS OF ASSESSEE WHICH WAS PARTLY UPHEL D BY THE CIT(A). 8. THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE PLACED RELIANCE ON THE ORDER OF ASSESSING OFFICER TO POINT OUT THAT IN VIEW OF ERRATIC CONSUMPTION OF ELECTRICITY ADDITION IS WARRANTED. ELECTRICITY ADDITION IS WARRANTED. 9. WE HAVE HEARD THE RIVAL CONTENTIONS A ND PERUSED THE RECORD. BRIEFLY IN THE FACTS OF THE CASE THE ASSESSEE WAS ENGAGED IN THE MANUFACTURING OF TMT BARS FROM SCRAP. THE CASE OF ASSESSEE BEFORE THE ASSESSING OFFICER WAS THAT IN OTHER CASES OF STEEL UNITS IN JALNA TMT BARS WERE MANUFACTURED FROM BILLETS AND INGOTS; HOWEVER THE ASSESSEE WAS MANUFACTURING TMT BARS FROM SCRAP. IT WAS THE CASE OF ASSESSEE BEFORE US THAT THE UNITS UNDER CONSIDERATION WERE HAVING SMALL CAPACITY WHERE SCRAP WAS USED TO MANUFACTURE TMT BARS. THE ASSESSING OFFICER HAD ESTIMATED THE PROFIT ON ALLEGED SUPPRESSION OF PRODUCTION ON ACCOUNT OF ERRATIC CONSUMPTION OF ELECTRICITY. THE CIT(A) HAD WORKED OUT THE AVERAGE UNIT CONSUMPTION OF ELECTRICITY OF FOUR UNITS ON IDENTICAL TYPE WHICH WORKED OUT 905 UNITS. HOWEVER HE ESTIMATED 800 UNITS TO BE UTILIZED FOR PER TMT PRODUCTION AND THEREAFTER WORKED OUT THE SUPPRESSED PRODUCTION IN THE HANDS OF ASSESSEE AND APPLIED GP RATE OF 4% TO WORK OUT THE SUPPRESSED SALES. THE CIT(A) ALSO ITA NO . 1731 / PN /201 4 ITA NO. 1827 /PN/201 4 SHRI GANESH SHIV PARVATI STEEL PVT. LTD. 5 ESTIMAT ED THE WORKING CAPITAL INVESTMENT RE QUIRED FOR SUCH SUPPRESSED PRODUCTION. THE CASE OF ASSESSEE ON THE OTHER HAND BEFORE US WAS THAT IN THE CASE OF PRESENT ASSESSEE THERE WAS NO CASE OF ANY CLANDESTINE REMOVAL OF GOODS WITHOUT PAYMENT OF EXCISE DUTY BY THE EXCISE AUTHORITY OR EVEN BY THE INCOME TAX AUTHORITY. FURTHER NO DEMAND HAD BEEN RAISED BY THE CCE FOR ALLEGED SUPPRESSION OF PRODUCTION OR ANY PETITION WAS MOVED BEFORE THE DGCE I OR THE SETTLEMENT COMMISSION. THE ASSESSEE THOUGH WAS MANUFACTURING TMT BARS BUT SOURCE WAS DIFFERENT I. E. IT WAS USING SCRAP TO MANUFACTURE TMT BARS AS AGAINST ALL OTHER CONCERNS WHICH WERE USING BILLETS AND INGOTS. 10. ADMITTEDLY IN THE CASE OF ASSESSEE THERE WAS NO ENQUIRY OR SEARCH OR INVESTIGATION BY THE EXCISE DEPARTMENT UNDER WHICH ANY CASE OF SUP PRESSED PRODUCTION WAS DETECTED AND / OR CLANDESTINE REMOVAL OF GOODS WITHOUT PAYMENT OF EXCISE DUTY WAS MADE BY THE EXCISE DEPARTMENT. THE ASSESSEE HAD NOT MOVED ANY PETITION BEFORE ANY AUTHORITY OF EXCISE OR THE INCOME TAX AUTHORITY ADMITTING ANY PETITION BEFORE ANY AUTHORITY OF EXCISE OR THE INCOME TAX AUTHORITY ADMITTING ANY CLANDE STINE REMOVAL OF GOODS WITHOUT PAYMENT OF EXCISE DUTY. THE SOLE BASIS FOR ADDITION IN THE HANDS OF ASSESSEE WAS ERRATIC CONSUMPTION OF ELECTRIC UNITS. THE ASSESSING OFFICER ON THE BASIS OF ADDITION MADE IN THE CASE OF VARIOUS OTHER UNITS HAD MADE THE ADD ITION IN THE HANDS OF ASSESSEE ON ACCOUNT OF ESTIMATION OF PROFIT ON SUPPRESSED PRODUCTION WHICH IN TURN WAS BASED ON CONSUMPTION OF ELECTRICITY. FURTHER ADDITION WAS MADE ON ACCOUNT OF WORKING CAPITAL REQUIRED FOR INVESTMENT IN PURCHASE OF RAW MATERIA LS AND OTHER EXPENSES. 11. WE FIND THAT SIMILAR ISSUE OF ESTIMATION ON ACCOUNT OF ERRATIC CONSUMPTION OF ELECTRICITY AROSE BEFORE THE TRIBUNAL IN BUNCH OF APPEALS. THE ASSESSEE HAS FILED THE COPIES OF VARIOUS DECISIONS DECIDED BY THE TRIBUNAL VIDE ORDE RS DATED 05.03.2015 15.07.2015 AND 30.06.2016 . THE TRIBUNAL IN SHREE OM ROLLING MILLS PVT. LTD. VS. ADDL. CIT IN ITA NOS.125 & 127/PN/2012 AND CROSS APPEALS IN ITA NOS.430 & 431/PN/2012 RELATING TO ASSESSMENT YEARS 2007 - 08 & 2008 - 09 VIDE ITA NO . 1731 / PN /201 4 ITA NO. 1827 /PN/201 4 SHRI GANESH SHIV PARVATI STEEL PVT. LTD. 6 ORDER DATED 15. 07.2015 HAD CONSIDERED THE ISSUE AT LENGTH VIDE PARAS 54 TO 87 AND VIDE PARAS 88 AND 89 THE TRIBUNAL HAD DELETED THE ADDITION ON BOTH COUNTS I.E. ADDITION MADE ON ACCOUNT OF SUPPRESSED PRODUCTION AND ALLEGED INVESTMENT IN PURCHASES WHICH READ AS UNDER: - 88. IN THE ENTIRETY OF THE ABOVE SAID FACTS AND CIRCUMSTANCES WE HOLD THAT NO EXTRAPOLATION OF SALES FOR 300 DAYS CAN BE MADE IN THE HANDS OF THE ASSESSEE ON THE BASIS OF THE EVIDENCE FOUND FOR CLANDESTINE REMOVAL OF MATERIAL WITHOUT PAYMENT OF EXCISE D UTY FOR FEW DAYS WHICH IN TURN HAS BEEN ADMITTED BY THE ASSESSEE BY WAY OF FILING PETITION BEFORE THE SETTLEMENT COMMISSION WHICH IN TURN HAS ALSO BEEN ACCEPTED BY THE SETTLEMENT COMMISSION. MERELY BECAUSE THE SETTLEMENT COMMISSION ACCEPTED THE CLAIM OF THE ASSESSEE OF ADDITIONAL EXCISE DUTY PAYABLE ON THE SAID CLANDESTINE REMOVAL OF MATERIAL WITHOUT PAYMENT OF EXCISE DUTY DOES NOT ESTABLISH THE CASE OF THE REVENUE THAT THE SAID FIGURES OF ADDITIONAL PRODUCTION SHOULD BE UTILIZED FOR EXTRAPOLATING THE SALES IN THE HANDS OF THE ASSESSEE FOR THE ENTIRE YEAR. ADMITTEDLY THE ASSESSEE HAD OFFERED ADDITIONAL INCOME ON THE SAID CLANDESTINE REMOVAL OF MATERIAL WITHOUT PAYMENT OF EXCISE DUTY WHICH IS TO BE ADDED AS INCOME IN THE HANDS OF THE ASSESSEE. THE LE ARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE FAIRLY ADMITTED THAT IN CASE THE SAID ADDITIONAL INCOME HAS NOT BEEN ADDED WHILE COMPUTING THE INCOME IN THE HANDS OF THE ASSESSEE FOR THE RESPECTIVE YEARS THE SAME MAY BE DIRECTED TO BE ADDED IN THE HANDS OF THE RESPECTIVE ASSESSEE IN RESPECTIVE YEARS. ACCORDINGLY WE DIRECT THE ASSESSING OFFICER TO VERIFY FROM THE RECORDS FOR THE RESPECTIVE YEARS AND INCLUDE THE ADDITIONAL INCOME ON ACCOUNT OF SUCH ADMITTED CLANDESTINE REMOVAL OF MATERIAL WITHOUT PAYMENT OF EXCISE DUTY BY THE ASSESSEE EITHER BEFORE THE SETTLEMENT COMMISSION OR BEFORE THE EXCISE AUTHORITIES IN THE HANDS OF THE ASSESSEE. WE HAVE HEARD BUNCH OF APPEALS AND IN SOME YEARS THERE IS NO ASSESSEE. WE HAVE HEARD BUNCH OF APPEALS AND IN SOME YEARS THERE IS NO ADMISSION OF CLANDESTINE REMOVAL OF MATERIAL WITHOUT PAYM ENT OF EXCISE DUTY AND IN THOSE YEARS IN THE ABSENCE OF ANY EVIDENCE AND / OR ANY INVESTIGATION OR INQUIRY MADE BY THE ASSESSING OFFICER AND WHERE THE ASSESSING OFFICER HAS FAILED TO COLLECT ADDITIONAL EVIDENCE NO ADDITION CAN BE MADE IN THE HANDS OF THE ASSESSEE BY WAY OF EXTRAPOLATION OF SALES FOR 300 DAYS ON ACCOUNT OF ANY EVIDENCE FOUND IN ANY PRECEDING OR SUCCEEDING YEARS. FURTHER NO ADDITION CAN BE MADE IN THE HANDS OF THE ASSESSEE WHERE NO PETITION HAS BEEN FILED BY THE ASSESSEE BEFORE THE SETTL EMENT COMMISSION IN ANY OF THE RESPECTIVE YEARS OR BEFORE THE EXCISE AUTHORITIES. 89. SINCE WE HAVE DELETED THE ADDITION IN THE HANDS OF ASSESSEE ON BOTH ACCOUNTS I.E. ADDITION MADE ON ACCOUNT OF ERRATIC CONSUMPTION OF ELECTRICITY AND ADDITION PROPOSED ON THE BASIS OF EVIDENCE FOUND FOR THE PART OF THE YEAR OF CLANDESTINE REMOVAL OF MATERIAL WITHOUT PAYMENT OF EXCISE DUTY NEXT ADDITION MADE IN THE HANDS OF THE ASSESSEE I.E. ALLEGED INVESTMENT IN THE PURCHASES FOR EFFECTING SUCH SALES WHICH GOODS HAVE BEEN CLANDESTINELY REMOVED IS NOT SUSTAINABLE. ACCORDINGLY WE HOLD THAT NO ADDITION CAN BE MADE IN THE HANDS OF THE ASSESSEE ON ACCOUNT OF ALLEGED INVESTMENT IN PURCHASES UNDER SECTION 69C OF THE ACT. 1 2 . THEREAFTER CORRIGENDUM ORDER WAS PASSED BY THE T RIBUNAL SUBSTITUTING PARA 88 OF THE TRIBUNAL VIDE ORDER DATED 17.02.2016 AND IT WAS HELD AS UNDER: - 3. ON PERUSAL OF THE RECORD WE FIND THAT BY AN ERROR THE FINDINGS OF THE TRIBUNAL IN PARA 88 WITH SPECIAL REFERENCE TO FROM LINE 17 TO 22 NEEDS CORRECTI ON TO THE EXTENT THAT THE ADDITIONAL INCOME TO BE ADDED IN THE HANDS OF THE ASSESSEE IS EQUIVALENT TO PROFITS ON SUPPRESSED PRODUCTION @ 4% OR ACTUAL GP RATE DECLARED BY THE ASSESSEE WHICHEVER WAS HIGHER. IN VIEW THEREOF WE PASS THIS CORRIGENDUM ITA NO . 1731 / PN /201 4 ITA NO. 1827 /PN/201 4 SHRI GANESH SHIV PARVATI STEEL PVT. LTD. 7 ORDER AN D THE PARA 88 I.E. FROM LINE 17 TO 22 WOULD NOW BE SUBSTITUTED BY FOLLOWING PARA. 88. ADMITTEDLY THE ASSESSEE HAD OFFERED ADDITIONAL INCOME ON THE SAID CLANDESTINE REMOVAL OF MATERIAL WITHOUT PAYMENT OF EXCISE DUTY WHICH IS TO BE ADDED AS INCOME IN THE HANDS OF THE ASSESSEE. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE FAIRLY ADMITTED THAT IN CASE THE SAID ADDITIONAL INCOME HAS NOT BEEN ADDED WHILE COMPUTING THE INCOME IN THE HANDS OF THE ASSESSEE FOR THE RESPECTIVE YEARS THE SAME MAY BE DIRECTED TO BE ADDED IN THE HANDS OF THE RESPECTIVE ASSESSEE IN RESPECTIVE YEARS. ACCORDINGLY WE DIRECT THE ASSESSING OFFICER TO VERIFY FROM THE RECORDS FOR THE RESPECTIVE YEARS AND INCLUDE THE ADDITIONAL INCOME ON ACCOUNT OF SUCH ADMITTED CLANDESTINE RE MOVAL OF MATERIAL WITHOUT PAYMENT OF EXCISE DUTY BY THE ASSESSEE EITHER BEFORE THE SETTLEMENT COMMISSION OR BEFORE THE EXCISE AUTHORITIES IN THE HANDS OF THE ASSESSEE. ACCORDINGLY WE DIRECT THE ASSESSING OFFICER TO VERIFY FROM THE RECORDS FOR THE RESPE CTIVE YEARS AND INCLUDE IN THE HANDS OF ASSESSEE THE ADDITIONAL INCOME @ 4% OR ACTUAL G.P. RATE DECLARED BY THE ASSESSEE FOR THAT YEAR WHICHEVER IS HIGHER ON VALUE OF SUCH ADMITTED CLANDESTINE REMOVAL OF MATERIAL WITHOUT PAYMENT OF EXCISE DUTY BY THE A SSESSEE BEFORE THE EXCISE AUTHORITIES. THUS THE ASSESSEE IS DIRECTED TO FILE THE REQUISITE DETAILS OF PROCEEDINGS BEFORE THE EXCISE AUTHORITIES BEFORE THE ASSESSING OFFICER IN ORDER TO COMPUTE THE ADDITIONAL INCOME IN THE HANDS OF ASSESSEE IN THE RESPEC TIVE YEARS. 1 3 . THE ISSUE ARISING BEFORE US IDENTICAL TO THE ISSUE BEFORE THE TRIBUNAL IN SHREE OM ROLLING MILLS PVT. LTD. VS. ADDL. CIT (SUPRA). FURTHER DURING THE YEAR UNDER CONSIDERATION NEITHER INVESTIGATION BY THE DGCEI NOR ANY SUPPRESSED PRODUCT ION HAS BEEN DETECTED AND ADMITTED BY THE ASSESSEE. FURTHER THE ASSESSEE HAS NOT MOVED ANY PETITION BEFORE THE SETTLEMENT COMMISSION OR ANY OTHER EXCISE AUTHORITIES. IN THE TOTALITY OF THE ABOVE SAID FACTS AND CIRCUMSTANCES AND IN THE ABSENCE OF ANY EVI DENCE COLLECTED BY THE ASSESSING OFFICER OF ALLEGED REMOVAL OF GOODS WITHOUT PAYMENT OF EXCISE DUTY MERELY ON THE BASIS OF ESTIMATION OF ALLEGED SUPPRESSED PRODUCTION IN CASE OF OTHER CONCERNS OF JALNA THERE IS NO MERIT IN MAKING ANY ADDITION IN THE HAND S OF ASSESSEE. FURTHER THE TRIBUNAL IN SERIES OF CASES WITH LEAD ORDER IN SHREE OM ROLLING MILLS PVT. LTD. VS. ADDL. CIT (SUPRA) IN ASSESSMENT YEARS 2006 - 07 AND 2007 - 08 VIDE ORDER DATED 15.07.2015 HAS DELETED THE ADDITION MADE IN THE HANDS OF ASSESSEE ON ACCOUNT OF ALLEGED SUPPRESSION OF PRODUCTION. IN THE TOTALITY OF THE ABOVE SAID FACTS AND CIRCUMSTANCES WE DELETE ADDITION MADE IN THE HANDS OF ASSESSEE BY THE CIT(A) TO THE EXTENT OF 4% OF THE SAID ALLEGED PRODUCTION. ACCORDINGLY GROUND OF APPEAL ITA NO . 1731 / PN /201 4 ITA NO. 1827 /PN/201 4 SHRI GANESH SHIV PARVATI STEEL PVT. LTD. 8 RAI SED BY THE ASSESSEE AGAINST REJECTION OF BOOKS OF ACCOUNT AND CONFIRMING THE ADDITION MADE ON ACCOUNT OF SUPPRESSION OF PRODUCTION BY APPLYING GP RATE OF 4% ON THE ALLEGED PRODUCTION OF SALE ARE ALLOWED. THE GROUND OF APPEAL AGAINST WORKING CAPITAL REQUIR EMENT IS ALSO ALLOWED. FURTHER THE GROUNDS OF APPEAL RAISED BY THE REVENUE AGAINST THE ORDER OF CIT(A) IN QUANTIFYING THE SUPPRESSED PRODUCTION @ 4% AND DELETING THE ADDITION OF WORKING CAPITAL ARE DISMISSED. IN VIEW THEREOF THE APPEAL OF ASSESSEE IS A LLOWED AND THE APPEAL OF REVENUE IS DISMISSED. 1 4 . IN THE RESULT APPEAL OF ASSESSEE IS ALLOWED AND APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED ON THIS 21 ST DAY OF OCTOBER 201 6 . SD/ - SD/ - SD/ - SD/ - ( ANIL CHATURVEDI ) ( SUSHMA CHOWLA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; D ATED : 21 ST OCTOBER 201 6 . GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT; 3. ( ) / THE C I T (A) AURANGABAD ; 4. / THE C I T AURANGABAD ; 5. / DR A ITAT PUNE; 6. / GUARD FILE . / BY ORDE R // TRUE COPY // / SR. PRIVATE SECRETARY / ITAT PUNE