Anupam Silk Mills Pvt. Ltd.,, Surat v. The ACIT., Cent.Circle-4,, Surat

ITA 1749/AHD/2006 | 2003-2004
Pronouncement Date: 30-04-2010 | Result: Dismissed

Appeal Details

RSA Number 174920514 RSA 2006
Assessee PAN AACCA0021G
Bench Ahmedabad
Appeal Number ITA 1749/AHD/2006
Duration Of Justice 3 year(s) 9 month(s) 12 day(s)
Appellant Anupam Silk Mills Pvt. Ltd.,, Surat
Respondent The ACIT., Cent.Circle-4,, Surat
Appeal Type Income Tax Appeal
Pronouncement Date 30-04-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 30-04-2010
Date Of Final Hearing 27-04-2010
Next Hearing Date 27-04-2010
Assessment Year 2003-2004
Appeal Filed On 18-07-2006
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI N.S. SAINI ACCOUNTANT MEMBER AND SHRI MAHAVIR SINGH JUDICIAL MEMBER DATE OF HEARING: 27.04.2010 DRAFTED ON: 28.04. 2010 ITA NO.1749/AHD/2006 ASSESSMENT YEAR : 2003-2004 ANUPAM SILK MILLS PVT. LTD. SHOP NO.225- 226 ARIHANT TEXTILE MARKET RING ROAD SURAT. VS. ASSTT. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-4 AAYKAR BHAVAN 5 TH FLOOR MAJURA GATE SURAT. PAN/GIR NO. : AACCA0021G (APPELLANT) .. (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY: SHRI C.K.MISHRA D.R. O R D E R PER N.S.SAINI ACCOUNTANT MEMBER :- THE APPEAL FILED BY THE ASSESSEE WAS DECIDED BY T HE TRIBUNAL VIDE ITS CONSOLIDATED ORDER DATED 8.05.200 9 PASSED IN ITA NOS.1743/AHD/2005 1749/AHD/2006 1867/AHD/2005 AND 1791/AHD/ 2006 FOR THE ASSESSMENT YEARS 2002-2003 AND 2003-20 04 IN THE CROSS APPEAL FILED BY THE ASSESSEE AND REVENUE. 2. IN PURSUANCE TO THE MISCELLANEOUS APPLICATION F ILED BY THE ASSESSEE THE TRIBUNAL VIDE ITS ORDER DATED 18. 02.2010 IN MA NO.238/AHD/2009 RECALLED THE ORIGINAL ORDER TO DECI DE THE UNDER - 2 - MENTIONED GROUND OF APPEAL WHICH WAS OMITTED TO BE DECIDED IN THE ORIGINAL ORDER DATED 18.02.2010. ADDITIONALLY APPELLATE AUTHORITY HAVE OVERLOOKED AND FAILED IN APPRECIATING AND EVALUATING THE EVIDENCE LED BY THE APPELLANT BEFORE THE ASSESSING AUTHORITY. APPEL LATE AUTHORITY WAS JUST REQUIRED TO CAREFULLY AND PATIEN TLY REQUIRED TO APPRECIATE THE TRUTHFUL EXPLANATION (SUPPORTED WITH EVIDENCE) OF THE APPELLANT PRESENTE D BEFORE ASSESSING AUTHORITY. IMPROPER AND UNREASONAB LE EVALUATION OF THE SAME LED TO THE CONFIRMATION OF T HE ADDITION OF RS.20 822/- ON ACCOUNT OF DIFFERENCE IN VALUATION OF CLOSING STOCK. IT BE FULLY DELETED. 3. ACCORDINGLY THE CASE WAS FIXED FOR HEARING ON 27.04.2010 AND NOTICE WAS DULY SERVED ON THE ASSESS EE. ON THE DATE OF THE HEARING NEITHER ASSESSEE APPEARED NOR FILED ANY ADJOURNMENT PETITION. IN THE CIRCUMSTANCES BENCH PROCEEDED TO DECIDE THE APPEAL EX-PARTE QUA ASSESSEE AFTER HEARING THE LEARNED DEP ARTMENTAL REPRESENTATIVE AND PERUSING THE MATERIAL AVAILABLE ON RECORD. 4. THE LEARNED ASSESSING OFFICER IN RESPECT OF THE ISSUE UNDER CONSIDERATION OBSERVED AS UNDER:- 8.1. IN REPLY THE ASSESSEE HAS FURNISHED THE RECONCILIATION STATEMENT IN THE CASE OF M/S.TRISHAL A SILK MILLS PVT. LTD. AND THE SAME IS FOUND IN ORDER. IN THE CASE OF M/S. ANIL SILK MILLS THE ASSESSEE HAS STATE D THAT INADVERTENTLY GENUINELY AND BONAFIDELY HE COMMIT TED A MISTAKE UNDER THE HEAD OF RECEIPT AFTER PROCESS AGAINST JAY TEX SILK MILLS SHOWED THE METERS AT 126 0. IF THIS CONTENTION OF THE ASSESSEE HAS BEEN ACCEPTED T HAN THERE IS A DIFFERENCE IN THE CASE OF M/S. JAY SILK MILLS. THE ASSESSEE HAS SHOWN OPENING STOCK IN THE CASE OF M/S. JAY SILK MILLS OF 1441 METER AND AFTER CONSIDE RING THE PRODUCTION OF 1260 METER AND THE SHORTAGE NOT S HOWN - 3 - AS CLOSING STOCK. IF THIS PRODUCTION TRANSFERRED TO M/S. ANIL SILK MILLS THEN THERE WILL BE STOCK OF GREY CL OTH AT THE MILL OF M/S. JAY TEX SILK MILLS AND THERE WILL BE DIFFERENCE IN THE CLOSING STOCK OF GREY CLOTH OF 14 41 METER. THE ASSESSEES CONTENTION HAS BEEN ACCEPTED AT THAT EXTENT AND THE DIFFERENCE OF CLOSING STOCK OF GREY CLOTH LIES AT THE MILLS HAS BEEN WORKED OUT TO 1441 METER. APPLYING THE AVERAGE RATE OF RS.14.45 OF GREY CLOTH TAKEN BY THE ASSESSEE FOR VALUATION OF THE CLOSING OF GREY CLOTH THE VALUATION OF 1441 METER OF GREY CLOTH WOR KED OUT TO RS.20 822/- WHICH IS ADDED BACK TO THE TOTAL INCOME OF THE ASSESSEE. PENALTY PROCEEDING U/S.271( 1)(C) R.W.S. 271 OF THE ACT IS INITIATED SEPARATELY. 5. THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) CONFIRMED THE ORDER OF THE LEARNED ASSESSING OFFICE R OBSERVING AS UNDER:- HOWEVER PERUSAL OF PARA 8.7 OF THE ASSESSMENT ORD ER INDICATES THAT THE APPELLANT COULD NOT RECONCILE TH E DISCREPANCY IN RESPECT OF M/S.ANIL SILK MILLS. THE APPELLANT SIMPLY CUT A SORRY FIGURE INSTEAD OF GIV ING TRUE FACTS. THE EXPLANATION OF THE APPELLANT BEFORE ME I S ALSO NOT CONVINCING. THE MISTAKE COMMITTED WAS ACCEPTED DURING THE COURSE OF ASSESSMENT PROCEEDINGS. THE DIFFERENCE OF CLOSING STOCK OF 1441 METERS COULD NO T BE RECONCILED OR EXPLAINED BY THE APPELLANT. IN VIEW O F THE FACTS INVOLVED THE ASSESSING OFFICER WAS JUSTIFIED IN MAKING ABOVE ADDITION. THUS THE ADDITION OF RS.20 822/- ON ACCOUNT OF DISCREPANCY IN CLOSING ST OCK IS SUSTAINED. 6. WE FIND THAT THE AMOUNT OF RS.20 822/- WAS ADDE D TO THE INCOME OF THE ASSESSEE ON THE GROUND THAT THE ASSES SEE COULD NOT RECONCILE THE DISCREPANCY IN RECEIPT OF GOODS FOUND BY THE LEARNED ASSESSING OFFICER. WE FIND THAT NO MATERIAL WAS BRO UGHT BEFORE US ALSO TO RECONCILE THE DISCREPANCY NOTED BY THE LOWE R AUTHORITIES. IN - 4 - ABSENCE OF THE SAME WE DO NOT FIND ANY GOOD REASON TO INTERFERE WITH THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS). IT IS CONFIRMED AND THE GROUND OF APPEAL OF THE ASSESSEE IS DISMISSED. ORDER SIGNED DATED AND PRONOUNCED IN THE COURT ON 30 TH DAY OF APRIL 2010. SD/- SD/- ( MAHAVIR SINGH) ( N.S. SAINI ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; ON THIS 30 TH DAY OF APRIL 2010 PARAS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT(APPEALS)-II AHMEDABAD. 5. THE DR AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER //TRUE COPY// (DY./ASSTT.REGISTRAR) ITAT AHMEDABAD DATE INITIALS 1. DRAFT DICTATED ON 27.04.2010 -------------- ----- 2. DRAFT PLACED BEFORE AUTHORITY 28.04.2010 ---- --------------- 3. DRAFT PROPOSED & PLACED 28.04.2010 ----------- -------- JM BEFORE THE SECOND MEMBER 4. DRAFT DISCUSSED/APPROVED --------------- ---- --------------- JM BY SECOND MEMBER 5. APPROVED DRAFT COMES TO P.S ---------------- -- ------------------ 6. KEPT FOR PRONOUNCEMENT ON ---------------- --- ----------------- 7. FILE SENT TO THE BENCH CLERK ---------------- -------------------- 8. DATE ON WHICH FILE GOES TO THE ---------------- -------------------- 9. DATE OF DISPATCH OF ORDER ---------------- --- ------------------