The ITO,, Narasaraopeta v. M/s. Sri Sarda Jewellery Mart,, Narasaraopeta

ITA 223/VIZ/2017 | 2013-2014
Pronouncement Date: 08-11-2017 | Result: Allowed

Appeal Details

RSA Number 22325314 RSA 2017
Assessee PAN AAPFS6596L
Bench Visakhapatnam
Appeal Number ITA 223/VIZ/2017
Duration Of Justice 9 month(s) 19 day(s)
Appellant The ITO,, Narasaraopeta
Respondent M/s. Sri Sarda Jewellery Mart,, Narasaraopeta
Appeal Type Income Tax Appeal
Pronouncement Date 08-11-2017
Appeal Filed By Department
Tags No record found
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 08-11-2017
Assessment Year 2013-2014
Appeal Filed On 19-01-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM . . . BEFORE SHRI V. DURGA RAO JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH ACCOUNTANT MEMBER . / I . T .A.NO. 223 /VIZ/ 201 7 ( / ASSESSMENT YEAR: 20 1 3 - 1 4 ) THE I T O WARD - 1 D.NO.12 - 19 - 22/A 1 ST FLOOR LAKSHMI BHAVAN PRAKASH NAGAR NARASARAOPET 522 601 GUNTUR(DISTRICT) ANDHRA PRADESH M/S SRI SARADA JEWELLERY MART MAIN ROAD NARASARAOPET [ PAN : A A PFS6596L ] ( / APPELLANT) ( / RESPONDENT) CO NO. 45 /VIZ/201 7 ARISING OUT OF ITA NO.223/VIZ/2017 ( / ASSESSMENT YEAR:20 13 - 14 ) M/S SRI SARADA JEWELLERY MART MAIN ROAD NARASARAOPET [ PAN : A APFS6596L ] THE ITO WARD - 1 D.NO.12 - 19 - 22/A 1 ST FLOOR LAKSHMI BHAVAN PRAKASH NAGAR NARASARAOPET 522 601 GUNTUR(DISTRICT) ANDHRA PRADESH ( / APPELLANT) ( / RESPONDENT) / REVENUE BY : SHRI V.APPALA RAJU DR / ASSESSEE BY : SHRI R.VENKATA RAMANA AR / DATE OF HEARING : 01 . 1 1 .2017 / DATE OF PRONOUNCEMENT : 08 .1 1 .2017 2 ITA NO. 223/VIZ/2017 AND CO NO.45/VIZ/2017 M/S SRI SARADA JEWELLARY MART. GUNTUR / O R D E R PER D.S. SUNDER SINGH ACCOUNTANT MEMBER: 1. THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX ( APPEALS ) - 1 [CIT(A)] GUNTUR VIDE ITA NO. 6 / 2016 - 17 / CIT(A - 1) / GNT DATED 17 .0 2 .201 7 FOR THE ASSESSMENT YEAR 20 1 3 - 1 4 . 2. GROUND NOS. 1 AND 4 ARE GENERAL IN NATURE WHICH DO NOT REQUIRE SPECIFIC ADJUDICATION. 3. GROUND NO.2 IS RELATED TO THE VALUATION OF CLOSING STOCK. DURING THE ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER (AO) OBSERVED THAT THE ASSESSEE WAS HAVING 38 674.504 OF CLOSING STOCK OF GOLD AND VALUED THE STOCK AT RS.8 23 76 700/ - ADOPTING THE RATE OF RS.2 130/ - PER GRAM AS ON 31.03.2013. THE AO PROPOSED TO ADOPT WEIGHTED AVERAGE METHOD AS PER AS - 2 ON CLOSING STOCK OF 38 674.504 GMS OF GOLD AND ACCORDINGLY ISSUED SHOW CAUSE NOTICE PROPOSING TO MAKE THE ADDITION OF RS.2 3 7 41 117 / - . THE ASSESSEE REPLIED THAT THE ASSESSEE IS ADOPTING THE COST PRICE METHOD AND MAINTAINED REGULAR BOOKS OF ACCOUNTS I.E. DAY BOOK LEDGER YEAR WISE 3 ITA NO. 223/VIZ/2017 AND CO NO.45/VIZ/2017 M/S SRI SARADA JEWELLARY MART. GUNTUR RECORD OF STOCKS AT THE SHO P AND ARGUED THAT THE STOCKS WERE VALUED AT COST OR MARKET PRICE WHICHEVER IS LOWER AS PER THE ACCOUNTING PRINCIPLES . THE ASSESSEE ALSO EXPLAINED THAT THE METHOD OF VALUATION IS FOLLOWED CONSISTENTLY FOR MANY YEARS AN D THERE WAS NO CHANGE IN THE METHOD ADOPTED BY THE ASSESSEE. THEREFORE THERE IS NO REASON TO DISTURB THE VALUATION OF THE CLOSING STOCK AND REQUESTED THE AO NOT TO DISTURB THE METHOD OF CLOSING STOCK ADOPTED BY THE ASSESSEE. HOWEVER THE AO WAS NOT CONVINCED WITH THE EXPLANATION OF THE ASSESSE SINCE THE ASSESSEE HAS NOT DEMONSTRATED THAT THE ASSESSEE IS FOLLOWING THE COST METHOD WITH REFERENCE TO THE STOCKS HELD BY THE ASSESSEE. THE ASSESSEE DID NOT PRODUCE STOCK REGISTER AND DID NOT PRODU CE ANY OTHER EVIDENCE. FURTHER THE AO HAS REQUESTED THE ASSESSEE TO PRODUCE THE BOOKS OF ACCOUNTS BUT THE ASSESSEES AUTHORISED REPRESENTATIVE DID NOT PRODUCE THE BOOKS OF ACCOUNTS TO SUPPORT THE ASSESSEES STATEMENT THAT THE CLOSING STOCK WAS VALUED CORR ECTLY. THEREFORE IN THE ABSENCE OF BOOKS OF ACCOUNTS AND THE RELEVANT INFORMATION WITH REGARD TO IDENTIFICATION OF OLD STOCK THE AO ADOPTED THE WEIGHTED AVERAGE METHOD AND VALUED THE CLOSING STOCK AT RS. 2743.87 PER GRAM AND MADE THE ADDITION OF RS.2 37 41 117/ - . 4 ITA NO. 223/VIZ/2017 AND CO NO.45/VIZ/2017 M/S SRI SARADA JEWELLARY MART. GUNTUR 4. AGGRIEVED BY THE ORDER OF THE AO THE ASSESSEE WENT ON APPEAL BEFORE THE CIT (A) . THE LD.CIT (A) RELIED ON THE SUBMISSION OF THE ASSESSEE AND HELD THAT THE ASSESSEE IS FOLLOWING COST METHOD FOR SO MANY YEARS CONSISTENTLY AND MAINTAINING THE STOCK BOOKS WHICH WAS ACCEPTED BY THE AO FROM YEAR TO YEAR AND IN THE ABSENCE OF CONTRARY FINDINGS BY THE AO THERE IS NO MERIT IN DISTURBING THE METHOD OF VALUATION OF STOCK WHICH IS REGULARLY FOLLOWED BY THE ASSESSEE. ACCORDINGLY LD.CIT(A) RELIED ON VARIOUS DECISIONS AND HELD THAT THERE IS NO MERIT IN THE AO S ORDER IN REJECTING THE METHOD OF VALUATION OF STOCK CONSISTENTLY FOLLOWED BY THE ASSESSEE AND ACCORDINGLY ALLOWED THE APPEAL OF THE ASSESSEE. 5. AGGRIEVED BY THE ORDER OF THE LD.CIT(A) THE R EVENUE IS IN APPEAL BEFORE THIS TRIBUNAL. DURING THE APPEAL HEARING LD.DR ARGUED THAT THE ASSESSEE IS HAVING CLOSING STOCK OF GOLD TO THE EXTENT OF 38 674.504 GMS WHICH WAS VALUED AT RS.2 130/ - PER GRAM. THOUGH THE ASSESSEE STATED THAT THE ASSESSEE WAS FOLLOWING THE COST METHOD THERE WAS NO BASIS FOR THE CLAIM AND INSPITE OF GIVING REPEATED OPPORTUNITIES BY THE AO THE ASSESSEE DID NOT PRODUCE THE BOOKS OF ACCOUNTS STOCK REGISTER AND THE INFOR MATION CALLED FOR BY THE AO AS EVIDENCED FROM THE ASSESSMENT ORDER. IN THE ABSENCE OF CLEAR IDENTIFICATION OF STOCKS PURCHASED DURING VARIOUS YEARS IT 5 ITA NO. 223/VIZ/2017 AND CO NO.45/VIZ/2017 M/S SRI SARADA JEWELLARY MART. GUNTUR IS NOT CORRECT TO ADOPT THE COST ITEM METHOD IN THE ASSESSEES CASE. SINCE THE ASSESSEE FAILED TO PRO DUCE BOOKS OF ACCOUNTS IT IS ESTABLISHED THAT THERE IS NO PROPER RECORDS MAINTAINED BY THE ASSESSEE HENCE LD.AR ARGUED THAT THE AO HAS RIGHTLY ADOPTED THE WEIGHTED AVERAGE METHOD FOR VALUING THE CLOSING STOCK AND ARGUED THAT THE ORDER OF THE LD.CIT(A) BE SET ASIDE AND THE ORDER OF THE AO IS REQUIRED TO BE RESTORED. 6. PER CONTRA LD. AR ARGUED THAT THE ASSESSEE IS FOLLOWING THE COST ITEM METHOD FOR VALUING THE CLOSING STOCK. THE ASSESSEE HAS MAINTAINED THE REGULAR BOOKS OF ACCOUNTS DAY BOOK LEDGER AND OTHER STOCK ITEMS. THERE IS NO MERIT IN THE ARGUMENT OF THE LD.DR THAT THE ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNTS BEFORE THE AO AND ARGUED THAT THE ASSESSEE HAS PRODUCED THE BOOKS OF ACCOUNTS BEFORE THE AO. THE LD.AR FURTHER SUBMITTED THAT I N FA CT THE ASSESSEE HAS PRODUCED THE BOOKS OF ACCOUNTS AND ON VERIFICATION OF THE BOOKS OF ACCOUNTS THE AO HAS CALLED FOR FURTHER INFORMATION DURING THE ASSESSMENT PROCEEDINGS. HENCE THE LD.AR ARGUED THAT THERE IS NO TRUTH IN THE ARGUMENT OF THE AO THAT THE ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNTS. FURTHER SINCE THE ASSESSEE IS MAINTAINING THE BOOKS OF ACCOUNTS FOLLOWING THE CONSISTENT METHOD IN VALUATION OF THE CLOSING STOCK RULE OF CONSISTENCY DOES APPLY TO THE IT DEPARTMENT AS HELD 6 ITA NO. 223/VIZ/2017 AND CO NO.45/VIZ/2017 M/S SRI SARADA JEWELLARY MART. GUNTUR BY THE VARIOU S COURTS AND THERE IS NO REASON TO DISTURB THE METHOD OF VALUATION ADOPTED BY THE ASSESSEE. LD.AR ARGUED THAT THE VALUATION OF STOCK DOES NOT RESULT INTO PROFITS THUS THERE IS NO NEED TO DISTURB THE STOCK POSITION AS HELD BY HONBLE SUPREME COURT IN CHAI NRUP SAMPAT RAM [24 ITR 481]. LD.AR FURTHER SUBMITTED THAT IN CASE THE VALUATION OF CLOSING STOCK IS DISTURBED IN SUBSEQUENT YEARS THE ASSESSMENT RESULTS INTO LO SSES AND IT IS REVENUE NEUTRAL A ND HAS NO IMPACT ON THE TAX EFFECT. LD. AR HAS FURNISHED THE COPY OF THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2011 - 12 AND ARGUED THAT THE AO HAS ACCEPTED THE METHOD OF VALUATION OF THE CLOSING STOCK IN THE EARLIER YEAR AND THERE IS A CONSISTENCY IN THE METHOD ADOPTED BY THE ASSESSEE HENCE CANNOT BE DISTURBED . ACCORDING TO THE LD.AR THE ASSESSEE HAS VALUED THE CLOSING STOCK CORRECTLY AND THERE IS NO REASON TO DISTURB THE VALUATION OF THE CLOSING STOCK AND THE LD.CIT(A) HAS RIGHTLY DELETED THE ADDITION AND NO INTERFERENCE IS CALLED FOR IN THE ORDER OF THE LD. CIT(A). 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL PLACED ON RECORD. THE ASSESSEE IS HAVING CLOSING STOCK OF GOLD TO THE EXTENT OF 38 674.504 GM WHICH WAS VALUED AT RS.8 23 76 700/ - WHICH WORKS OUT TO RS.2 130/ - PER GRAM ON AN AV ERAG E. HOWEVER THE ASSESSEE HAS NOT VALUED 7 ITA NO. 223/VIZ/2017 AND CO NO.45/VIZ/2017 M/S SRI SARADA JEWELLARY MART. GUNTUR THE STOCK ADOPTING ANY AVERAGE RATE AS UNDERSTOOD BY THE AO BUT VALUED THE STOCK ON THE BASIS OF COST OR MARKET PRICE WHICHEVER IS LOWER. MORE SPECIFICALLY THE ASSESSE ADOPTED THE ORIGINAL COST OF ITEM FOR VALUING THE CLOSING STOCK BY FOLLOWING THE ACCOUNTING PRINCIPLE S. THE ASSESSEE IS FOLLOWING THE SAME METHOD FOR SEVERAL YEARS CONSISTENTLY AND THERE IS NO CHANGE IN THE METHOD OF ACCOUNTING FOLLOWED BY THE ASSESSEE. THOUGH THE METHOD OF ACCOUNTING FOLLOWED BY TH E ASSESSEE IS ACCEPTABLE THE ASSESSEE HAS TO DEMONSTRATE AND PROVE WITH RELEVANT RECORDS. IN THE INSTANT CASE THE AO HAS CALLED FOR VARIOUS RECORDS AND INFORMATION TO SUBSTANTIATE THE METHOD OF VALUATION OF THE CLOSING STOCK BUT THE ASSESSEE FAILED TO P RODUCE RELEVANT BOOKS OF ACCOUNTS AS NOTICED FROM THE ASSESSMENT ORDER PAGE NO.10. THE ASSESSEE HAS NEVER PRODUCED ANY BOOKS OF ACCOUNTS IN SPITE OF SEVERAL REQUESTS MADE AND THE AO WHICH WAS RECORDED IN THE ORDER SHEET AS PER THE ASSESSMENT ORDER AND STA TED TO BE SIGNED BY THE LD.AR OF THE ASSESSEE AND THE MANAGING PARTNER. HOWEVER WE REGRET TO NOTE THAT IN SPITE OF POWERS VESTED WITH THE AO IN SECTION 131 AND 133A WHY THE AO DID NOT MAKE USE OF THE POWERS TO COLLECT THE NECESSARY INFORMATION WHILE COM PLETING THE ASSESSMENT. FURTHER BASING ON THE FACT THAT THE ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNTS WE ARE UNABLE TO ACCEPT THAT THE METHOD ADOPTED BY THE ASSESSEE IS COST ITEM METHOD. THE ASSESSEE SHOULD 8 ITA NO. 223/VIZ/2017 AND CO NO.45/VIZ/2017 M/S SRI SARADA JEWELLARY MART. GUNTUR IDENTIFY STOCKS WITH THE ORIGINAL PURCH ASES BILLS FOR ESTABLISHING COST METHOD . T HE ASSESSEE IS NOT MAINTAIN ING THE STOCK REGISTER AS PER THE AUDIT REPORT AS MENTIONED IN THE ASSESSMENT ORDER. THOUGH THE ASSESSEE HAS FURNISHED THE QUANTITATIVE DETAILS OF THE STOCKS YEAR WISE BUT DID NOT PRODUC E THE BOOKS OF ACCOUNTS BILLS VOUCHERS ETC . TO SUPPORT THE COMPOSITION OF THE STOCK CLAIMED BY THE ASSESSEE YEAR WISE. THIS FACT WAS NOT CONTROVERTED BY THE LD.AR AT THE TIME OF ASSESSMENT. THEREFORE WE ARE UNABLE TO ACCEPT THE CONTENTI ON OF THE ASSESS E THAT VALUATION OF STOCK IS SUPPORTED BY ANY EVIDENCE. FURTHER DURING THE APPEAL HEARING LD.AR ARGUED THAT IF THE OPPORTUNITY IS GIVEN THE ASSESSEE WOULD BE IN A POSITION TO SUBSTANTIATE HIS CLAIM REGARDING VALUATION OF STOCK ITEM WISE WITH SPECIFIC PUR CHASE BILL . THIS ISSUE WAS NOT VERIFIED BY THE LD.CIT(A) ALSO AND THE LD.CIT(A) SIMPLY RELIED ON THE SUBMISSIONS OF THE LD.AR AND THE DECISIONS OF HONBLE HIGH COURTS INSTEAD OF VERIFYING THE FACT WITH THE EVIDENCES WHILE DECIDING THE APPEAL OF THE ASSESSEE. THEREFORE IN THE INTEREST OF JUSTICE WE ARE OF THE CONSIDERED OPINION THAT ONE MORE OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSEE TO ESTABLISH THE VALUATION OF THE STOCK AS PER C OST METHOD AS CLAIMED BY THE ASSESS EE. 9 ITA NO. 223/VIZ/2017 AND CO NO.45/VIZ/2017 M/S SRI SARADA JEWELLARY MART. GUNTUR 8. THE LD.A R FURTHER ARGUED THAT IF THE VALUATION OF THE CLOSING STOCK IS MADE BY WEIGHTED AVERAGE METHOD THE SAME METHOD IS REQUIRED TO BE APPL IED FOR VALUATION OF THE OPENING STOCK. THUS ARGUMENT OF THE LD.AR SOUNDS LOGICAL AND REASONABLE. THER EFORE WE REMIT THE ISSUE BACK TO THE FILE OF THE AO WITH A DIRECTION TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE TO ESTABLISH THA T THE CLOSING STOCK IS VALUED BY ADOPTING THE SPECIFIC COST METHOD WITH RELEVANT EVIDENCES OF BILLS VOUCHERS AND THE STOCK REGISTERS IF ANY AND DECIDE THE ISSUE AFRESH ON MERITS. IN CASE THE ASSESSEE FAILS TO DEMONSTRATE THE SPECIFIC COST METHOD THE AO IS FREE TO ADOPT THE WEIGHTED AVERAGE METHOD FOR VALUING THE CLOSING STOCK AND IN CASE OF ADOPTING THE WEIGHTED AVERAGE MET HOD FOR VALUING THE CLOSING STOCK THE SAME METHOD REQUIRED TO BE APPLIED FOR OPENING STOCK ALSO FOR COMPUTING THE TRUE AND CORRECT PROFITS. WE KEEP THE ISSUE OPEN BEFORE THE AO TO MAKE NECESSARY ENQUIRIES AND COMPUTE THE CORRECT INCOME WITH REGARD TO THE CLOSING STOCK. ACCORDINGLY APPEAL OF THE REVENUE ON THIS ISSUE IS ALLOWED FOR STATISTICAL PURPOSES. 9 . GROUND NO.3 IS RELATED TO THE ADDITION OF RS.4 83 339/ - TO THE CAPITAL ACCOUNT OF THE MANAGING PARTNER. THE AO DURING THE ASSESSMENT PROCEEDINGS FOUND THAT THERE WAS A CREDIT OF RS.4 83 339/ - TO THE CAPITAL 10 ITA NO. 223/VIZ/2017 AND CO NO.45/VIZ/2017 M/S SRI SARADA JEWELLARY MART. GUNTUR ACCOUNT OF THE MANAGING PARTNER WHICH WAS EXPLAINED AS PROFIT ON SALE OF IRON AND CEMENT . THE AO OBSERVED THAT THE PURCHASE OF IRON AND CEMENT WAS RS.4 60 16 1/ - AS PER THE DETAILS FURNISHED BY THE ASSESSEE AND THE SALE OF IRON AND CEMENT WAS RS.9 43 500/ - . WHEREAS THE TOTAL VALUE OF PURCHASE OF IRON AND CEMENT WAS RS.9 27 121/ - RESULTING IN PROFIT OF RS.16 379/ - AGAINST WHICH THE CREDIT WAS MADE TO THE EXTEN T OF RS. 4 83 339/ - . HENCE THE AO HELD THAT RS.4 83 339/ - REMAINED UNEXPLAINED AND ACCORDINGLY BROUGHT TO TAX. LD.CIT(A) DELETED THE ADDITION HOLDING THAT THE MANAGING PARTNER SEPARATELY ASSESSED THE TAX AND THERE IS NO REASON TO MAKE THE ADDITION IN THE HANDS OF THE PARTNER. DURING THE APPEAL HEARING LD.DR ARGUED THAT THE ACTUAL PROFIT IN THE PURCHASE AND SALE OF IRON AND CEMENT WAS RS.16 379/ - AND SOURCE OF RS.4 83 339/ - CREDITED TO PROFIT & LOSS ACCOUNT DOES NOT RELATE TO THE PURCHASE AND SALE OF IRO N HENCE THE SOURCE REMAINS UNEXPLAINED AND ACCORDINGLY ARGUED THAT THE ADDITION REQUIRED TO BE CONFIRMED. 10 . ON THE OTHER HAND LD.AR ARGUED THAT DURING THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEAR THE ASSESSEE HAS MADE WITHDRAWALS OF RS.4 60 161/ - ON VARIOUS DATE S FOR PURCHASE OF IRON AND CEMENT AS PER THE DETAILS GIVEN IN THE ASSES SMENT ORDER AND SOLD THE SAME FOR RS.9 43 500/ - 11 ITA NO. 223/VIZ/2017 AND CO NO.45/VIZ/2017 M/S SRI SARADA JEWELLARY MART. GUNTUR AND CREDITED TO THE BOOKS OF ACCOUNTS OF THE FIRM AND THE RESULTING DIFFERENCE OF RS.4 83 339/ - AND SHOWN AS AN ADDITION TO CAPITAL ACCOUNT AND THERE IS NO MISTAKE HENCE NO ADDITION IS REQUIRED TO BE MADE IN THE HANDS OF THE FIRM. 1 1 . WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED ON RECORD. LD. AR SUBMITTED THAT THE ASSESSEE HAS WITHDRAWN RS.4 60 161/ - FROM THE PARTNERSHIP FIRM FOR PURCHASE OF IRON AND CEMENT AND CREDITED THE AMOUNT OF RS.9 43 500/ - ON ACCOUNT OF SALE OF IRON AND CEMENT RESULTING IN PROFIT OF RS.4 83 339/ - WHICH WAS BROUGHT TO CAPITAL ACCOUNT. THE CAPITAL ACCOUNT AVAILABLE IN PAGE NO.52 OF PAPER BOOK REVEALS A SUM OF RS.4 83 339/ - WAS CREDITED IN THE CAPITAL ACCOUNT. NO EVIDENCE /ENTRIES WERE SHOWN W ITH REGARD TO THE DRAWINGS OF RS.4 60 161/ - AND CREDIT OF RS.9 43 500/ - . THE ASSESSEE ALSO DID NOT FILE ANY EVIDENCE TO SHOW THAT THE SUM OF RS.4 83 339/ - WAS SUFFERED TO TAX IN THE HANDS OF THE MANAGING PARTNER. THEREFORE WE REMIT THE MATTER BACK TO TH E FILE OF THE AO TO MAKE FURTHER ENQUIRIES ON THIS ISSUE AND DECIDE THE ISSUE AFRESH ON MERITS. ACCORDINGLY APPEAL OF THE REVENUE ON THIS ISSUE IS SET ASIDE AND ALLOWED FOR STATISTICAL PURPOSE. 12 ITA NO. 223/VIZ/2017 AND CO NO.45/VIZ/2017 M/S SRI SARADA JEWELLARY MART. GUNTUR 12. IN THE RESULT THE APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSE. CROSS OBJECTION 1 3 . GROUND NO.1 IS RELATED TO THE ADDITION OF RS.33 720/ - U /S 40(A)(IA) OF I.T.ACT AND THE LD.AR DID NOT MAKE ANY ARGUMENT ON THIS ISSUE. THEREFORE THIS GROUND IS DISMISSED AS NOT PRESSED. 1 4 . GROUND NO.2 IS RELATED TO THE DISALLOWANCE BY ESTIMATING 1/4 TH OF THE EXP ENDITURE INCURRED TOWARDS VEHICLE REPAIR AND DEPRECIATION FOR PERSONAL USE . THE LD. AR DID NOT ARGUE ON THIS GROUND AND THIS GROUND IS DISMISSED AS NOT PRESSED. 1 5 . GROUND NO.3 AND 4 IS WITH REGARD TO THE ADDITION ON ACCOUNT OF THE VALUATION OF THE CLOSING STOCK AND CREDIT IN THE CAPITAL ACCOUNT OF THE MANAGING PARTNER UNDER MISCELLANEOUS CREDITS. BOTH THE ISSUES ARE REMITTED BACK TO THE FILE OF THE AO HENCE THESE GROUNDS ARE ALLO WED FOR STATISTICAL PURPOSES. CROSS OBJECTIONS ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES. 13 ITA NO. 223/VIZ/2017 AND CO NO.45/VIZ/2017 M/S SRI SARADA JEWELLARY MART. GUNTUR 16. GROUND NO.5 IS GENERAL IN NATURE WHICH DOES NOT REQUIRE SPECIFIC ADJUDICATION. 1 7 . IN THE RESULT APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSE AND CROSS OBJECTIONS OF THE ASSESSEE ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES . T HE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 8 TH NOV 20 17 . SD/ - SD/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 08 . 1 1 .2017 L. RAMA SPS 14 ITA NO. 223/VIZ/2017 AND CO NO.45/VIZ/2017 M/S SRI SARADA JEWELLARY MART. GUNTUR / COPY OF THE ORDER FORWARDED TO: - 1. / REVENUE - THE ITO WARD - 1 D.NO.12 - 19 - 22/A 1 ST FLOOR LAKSHMI BHAVAN PRAKASH NAGAR NARASARAOPET GUNTUR(DISTRICT) ANDHRA PRADESH - 522 601 2. - ASSESSEE - M/S SRI SARADA JEWELLERY MART D.NO.6 - 1 - 271 MAIN ROAD NARASARAOPET GUNTUR DIST. A.P. 3 . THE PR. COMMISSIONER OF INCOME TAX GUNTUR 4. COMMI SSIONER OF INCOME TAX (APPEALS) - 1 GUNTUR 5 . / DR ITAT VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT VISAKHAPATNAM