The ACIT, Circle-7(2),, Ahmedabad v. Shri Udaykumar Chhabildas Patel,, Ahmedabad

ITA 1995/AHD/2015 | 2009-2010
Pronouncement Date: 16-11-2017 | Result: Dismissed

Appeal Details

RSA Number 199520514 RSA 2015
Assessee PAN AATPP8316R
Bench Ahmedabad
Appeal Number ITA 1995/AHD/2015
Duration Of Justice 2 year(s) 4 month(s) 9 day(s)
Appellant The ACIT, Circle-7(2),, Ahmedabad
Respondent Shri Udaykumar Chhabildas Patel,, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 16-11-2017
Appeal Filed By Department
Tags No record found
Order Result Dismissed
Bench Allotted Not Allotted
Tribunal Order Date 16-11-2017
Assessment Year 2009-2010
Appeal Filed On 07-07-2015
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: SHR I MAHAVIR PRASAD JUDICIAL MEMBER AND SHRI AMARJIT SINGH ACCOUNTANT MEMBER THE ACIT CIRCLE - 7(2) AHMEDABAD (APPELLANT) VS SHRI UDAYKUMAR CHHABILDAS PATEL C/O. LINE O MATIC GRAPHIC INDUSTRIES PLOT NO. 324 PHSAE - 1 GIDC NARODA AHMEDABAD - 382330 PAN: AATPP8316R (RESPONDENT) REVENUE BY : S H RI MUDIT NAGPAL SR. D . R. ASSESSEE BY: S H RI A.C. SHAH A.R. DATE OF HEARING : 10 - 11 - 2 017 DATE OF PRONOUNCEMENT : 16 - 11 - 2 017 / ORDER P ER : AMARJIT SINGH ACCOUNTANT MEMBER : - THIS REVENUE S APPEAL FOR A.Y. 2009 - 10 AR IS ES FROM ORDER OF THE CIT(A) - 7 AHMEDABAD DATED 20 - 04 - 2015 IN PROCEEDINGS UNDER SECTION 143(3) R.W.S. 254 OF THE INCOME TAX ACT 1961; IN SHORT THE ACT . I T A NO . 1995 / A HD/20 15 A SSESSMEN T YEAR 200 9 - 10 I.T.A NO. 1995 /AHD/20 15 A.Y. 2009 - 10 PAGE NO ACIT VS. SHRI UDAYKUMAR CHHABILDAS PATEL 2 2. THE REVENUE HAS RAISED FOLLOW ING GROUNDS OF APPEAL: - 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.56 60 923/ - DESPITE SPECIFIC PROVISIONS OF SECTION 145 A OF THE ACT IN SUPPORT OF THE ADDITION MADE BY THE ASSESSING OFFICER AND WITHOUT CONSIDERING ASS ESSING OFFICERS REASONING THAT EXCLUSION OF CENVAT/VAT RECEIVABLES FROM VALUATION OF CLOSING STOCK WOUL D BE INCONSISTENT WITH EXPRESS PROVI SIONS OF SECTION 145 A OF THE I .T. ACT. 2. ON FACT AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORD ER OF THE AO. 3. IT IS THEREFORE PRAYED THAT T HE ORDER OF THE CIT (A) BE SET SIDE AND THAT OF THE OF THE A.O. BE RESTORED TO THE ABOVE EXTENT. 3. THE ORIGINAL ASSESSMENT U/S. 143(3) WAS PASSED ON 24 TH DECEMBER 2010 DETERMINING TOTAL INCOME O F RS. 40578770/ - BY MAKING DISALLOWANCE ON ACCOUNT OF VALUATION OF CLOSING U/S. 145A OF THE ACT OF RS. 5563000/ - . THE DEPARTMENT HAS PREFERRED APPEAL AGAINST THE ORDER OF THE LD. CIT(A) WHICH WAS RESTORED T O THE FILE OF ASSESSING OFFICER BY THE HON BLE IT AT VIDE ITS ORDER DA TED 53 5/AHD/2010 DATED 30 TH APRIL 2013. IN THE SET ASIDE PROCEEDINGS THE ASSESSING OFFICER HAS AGAIN MADE DISALLOWANCE U/S. 145A OF THE ACT OF RS. 5660923/ - ON THE GROUND THAT ASSESSEE HAS FOLLOWED EXCLUSIVE METHOD OF VALUATION INSTE AD OF INCLUSIVE METHO D OF VALUATION AS PER SECTION 1 4 5 A. DURING THE COURSE OF HEARING LD. COUNSEL HAS STATED THAT CASE OF THE ASSESSEE IS COVERED BY THE DECISION OF HON BLE JURISDICTIONAL HIGH COURT IN THE CASE OF ACIT VS. NARMADA CHEMATUR PETRO - CHEMICAL (2010) 327 ITR 369 (GUJ) ON THE BASIS OF WHICH THE CO - ORDINATE BENCH OF THE ITAT IN RESPECT OF CASE OF THE ASSESSEE THE MATTER WAS SET ASIDE TO THE LD. CIT(A). I.T.A NO. 1995 /AHD/20 15 A.Y. 2009 - 10 PAGE NO ACIT VS. SHRI UDAYKUMAR CHHABILDAS PATEL 3 4. WE HAVE HEARD BOTH THE SIDES AND PER USED THE MATERIAL ON RECORD. WE HAVE ALSO PERUSED TH E ORDER OF THE CO - ORDINATE BENCH OF THE ITAT VIDE WHICH THE ASSESSING OFFICER WAS DIRECTED TO FOLLOW THE DIRECTION OF HON BLE COURT WHICH IS REPRODUCED: - 4. WE HAVE HEARD THE LD. DR OF THE REVENUE AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND THA T ONLY GRIEVANCE OF THE REVENUE IS THAT LD. CIT(A) ERRED IN LAW IN FACT IN DIRECTING THE ASSESSING OFFICER TO DECIDE THE ISSUE U/S. 145A OF THE ACT ON THE BASIS OF DECISION OF HON'BLE JURISDICTIONAL HIGH COURT RE NDERED IN THE CASE OF ACIT V. N ARMADA CHEMAT UR PETROCHEMICALS LD. (2010) 327 ITR 369 (GUJ) AND HON'BLE CO - ORDINATE BENCH IN RESPECT OF EARLIER YEAR I.E.. AY 2007 - 08 IN ASSESSEE'S OWN CASE (SUPRA) HAS DIRECTED THE ASSESSING OFFICER WHICH IS REPRODUCED AS UNDER: - '... ... THE HON'BLE COURT HAS THUS H ELD THAT THE AO WAS NOT JUSTIFIED IN ADOPTING THE 'GROSS METHOD' AT THE TIME OF PURCHASES AND THE 'NET METHOD' OF VALUATION AT THE TIME OF VALUATION OF STOCK ON HAND. HOWEVER TH E BASIC QUESTION WHICH IS YET TO BE ASCERTAINED IS THAT WHETHER THE ASSESSEE HAS ADOPTED 'EXCLUSIVE METHOD' OR THE 'INCLUSIVE METHOD'. WHILE ARGUING BEFORE US ID. AR HAS IN SUBTLE MANNER EXPRESSED THAT ONLY FOR THE PURPOSE OF VERIFICATION OF THIS FACT THE MATTER CAN GO BACK TO THE AO BUT ONLY AFTER ASCERTAINING THE CORRECT POSITI ON OF LAW. AS FAR AS THE LEGAL ASPECT OF THIS ISSUE IS CONCERNED WE HAVE ALREADY DISCUSSED FEW CASE LAWS HEREINABOVE AND THEREFORE IT IS EXPECTED FROM THE AO TO FOLLOW THE SAME ONLY AFTER ASCERTAINING THE METHOD OF ACCOUNTING ADOPTED BY THE ASSESSEE IN RESPECT OF THE DUTIES IN QUESTION. WITH THESE DIRECTIONS WE HEREBY RESTORE THIS GROUND FOR A FRESH ADJUDICATION AS DIRECTED HENCE TO BE TREATED AS ALLOWED BUT FOR STATISTICAL PURPOSES.' WE DO NOT FIND ANY INFIRMITY INTO THE ORDER PASSED BY LD. CIT(A) SI NCE HE HAS SIMPLY DIRECTED THE ASSESSING OFFICER TO FOLLOW THE DIRECTION OF THE TRIBUNAL. MOREOVER THE REVENUE HAS NOT DEMONSTRATED ANY CHANGE INTO ACTS AND CIRCUMSTANCES IN THE PRESENT CASE. HENCE THIS GROUND OF REVENUE S APPEAL IS REJECTED. WE OBSER VED THAT THE ASSESSING OFFICER HAS NOT FOLLOWED THE DIRECTION OF THE CO - ORDINATE BENCH ON THE BASIS OF ABOVE REPORTED DECISION OF JURISDICTIONAL HIGH COURT AND HE HAS INCORRECTLY MADE THE AFORESAID ADD ITION U/S. 14 5 A OF TH E ACT WHICH IS NOT CORRECT THEREF ORE AFTER I.T.A NO. 1995 /AHD/20 15 A.Y. 2009 - 10 PAGE NO ACIT VS. SHRI UDAYKUMAR CHHABILDAS PATEL 4 CONSIDERING THE LEGAL FINDINGS AND THE DIRECTION OF THE HON BLE HIGH COURT WE DO NOT FIND ANY ERROR IN THE ORDER OF THE LD. CIT(A). 5. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 16 - 11 - 201 7 SD/ - SD/ - ( MAHAVIR PRASAD ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 16 /11 /2017 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR ITAT AHMEDABAD 6. GUARD FILE. BY ORDER/ /