Mamta Silk Mills Pvt.Ltd.,, Surat v. The Income tax Officer, Ward-1(3), Surat

ITA 291/AHD/2007 | 2003-2004
Pronouncement Date: 23-04-2010 | Result: Partly Allowed

Appeal Details

RSA Number 29120514 RSA 2007
Assessee PAN AABCM5904D
Bench Ahmedabad
Appeal Number ITA 291/AHD/2007
Duration Of Justice 3 year(s) 3 month(s) 7 day(s)
Appellant Mamta Silk Mills Pvt.Ltd.,, Surat
Respondent The Income tax Officer, Ward-1(3), Surat
Appeal Type Income Tax Appeal
Pronouncement Date 23-04-2010
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted A
Tribunal Order Date 23-04-2010
Date Of Final Hearing 22-04-2010
Next Hearing Date 22-04-2010
Assessment Year 2003-2004
Appeal Filed On 16-01-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A BEFORE SHRI BHAVNESH SAINI JUDICIAL MEMBER AND SHRI N.S.SAINI ACCOUNTANT MEMBER DATE OF HEARING: 22.04.10 DRAFTED ON: 22.04.1 0 ITA NO.291/AHD/2007 ASSESSMENT YEAR : 2003-2004 MAMTA SILK MILLS PVT. LTD. K-1286 SURAT TEXTILE MARKET RING ROAD SURAT. VS. INCOME TAX OFFICER WARD 1(3) AYAKAR BHAVAN MAJURA GATE SURAT. PAN/GIR NO. : AABCM 5904 D (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI RASESH SHAH C.A. RESPONDENT BY: SHRI RAJA RAM SAH SR. D.R. O R D E R PER N.S.SAINI ACCOUNTANT MEMBER :- THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST T HE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-I SURAT DATED 05.12.2006. 2. THE GROUNDS OF THE APPEAL OF THE ASSESSEE READS AS UNDER:- 1. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE A S WELL AS LAW ON THE SUBJECT THE LEARNED COMMISSIONER OF INC OME TAX (APPEALS) HAS ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN MAKING ADDITION OF RS.12 39 24 2/- FOR GROSS PROFIT ON JOB WORK TURNOVER BY ENHANCING GROS S PROFIT RATIO BY 1.5%. 2. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE AS WELL AS LAW ON THE SUBJECT THE LEARNED COMMISSIONER OF INC OME TAX (APPEALS) HAS ERRED IN DELETING THE ADDITION OF RS.7 58 570/- ON CLOSING STOCK ON MERITS OF THE CAS E. - 2 - 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS MENT FOR THE YEAR UNDER CONSIDERATION WAS COMPLETED BY THE LEAR NED ASSESSING OFFICER VIDE ITS ORDER DATED 31.01.2006 PASSED UNDE R SECTION 143(3) OF THE ACT. IN THE ASSESSMENT MADE THE LEARNED ASSESS ING OFFICER MADE A TRADING ADDITION OF RS.12 39 242/- BY ENHANCING THE GROSS PROFIT RATE BY 1.5% AND ALSO MADE ADDITION OF RS.7 58 570/- BY EN HANCING THE VALUE OF CLOSING STOCK. ON APPEAL THE LEARNED COMMISSION ER OF INCOME TAX(APPEALS) SUSTAINED THE TRADING ADDITION OF RS. 12 39 242/- AND ALLOWED TELESCOPING OF ADDITION OF RS.7 58 570/- ON ACCOUNT OF VALUATION OF CLOSING STOCK. 4. THE LEARNED AUTHORISED REPRESENTATIVE OF THE AS SESSEE ARGUED THAT THE ENHANCEMENT OF GROSS PROFIT OF THE ASSESSEE BY 1.5% WAS ON A HIGHER SIDE AND THE SAME MAY BE REDUCED. 5. THE LEARNED DEPARTMENTAL REPRESENTATIVE ON THE OTHER HAND SUPPORTED THE ORDER OF THE LEARNED COMMISSIONE R OF INCOME TAX(APPEALS). 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND THE MATERIALS A VAILABLE ON RECORD. WE FIND THAT THE LEARNED ASSESSING OFFICER HAS REJECTE D THE BOOKS OF ACCOUNT UNDER SECTION 145(3) OF THE ACT BY POINTING OUT THE DISCREPANCIES AS MENTIONED IN THE ASSESSMENT ORDER. THE ASSESSEE HAS NOT CHALLENGED BEFORE US THE REJECTION OF BOOKS OF ACCOUNT BY THE LEARNED ASSESSING OFFICER WHICH WAS CONFIRMED BY TH E LEARNED COMMISSIONER OF INCOME TAX(APPEALS) ALSO. THEREFOR E THE REJECTION OF BOOKS OF ACCOUNT HAVING BEEN ACCEPTED BY THE ASSESS EE THE LEARNED ASSESSING OFFICER WAS JUSTIFIED IN MAKING A TRADING ADDITION TO THE - 3 - INCOME OF THE ASSESSEE. HOWEVER THE ADDITION MAD E TO THE GROSS PROFIT RATE OF 1.5% IS ON A HIGHER SIDE AND IN OUR CONSIDE RED OPINION IT WOULD MEET THE ENDS OF JUSTICE IF ADDITION IS MADE TO TH E RATE OF GROSS PROFIT OF 1%. WE THEREFORE MODIFY THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) TO THIS EXTENT AND PARTLY ALLOW THE APPEAL OF THE ASSESSEE. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 23 RD DAY OF APRIL 2010. SD/- SD/- (BHAVNESH SAINI) ( N.S. SAINI ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; ON THIS 23 RD APRIL 2010 PARAS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT(APPEALS)-I SU RAT. 5. THE DR AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER //TRUE COPY// (DY./ASSTT.REGISTRAR) ITAT AHMEDABAD DATE INITIALS 1. DRAFT DICTATED ON 22.04.2010 ---------------- - 2. DRAFT PLACED BEFORE AUTHORITY 22.04.2010 ---- ------------- 3. DRAFT PROPOSED & PLACED 22.04.2010 ----------- ------JM BEFORE THE SECOND MEMBER 4. DRAFT DISCUSSED/APPROVED 22.04.2010 ---------- -------JM BY SECOND MEMBER 5. APPROVED DRAFT COMES TO P.S 22.04.2010 -------- ---------- 6. KEPT FOR PRONOUNCEMENT ON 23.04.2010 --------- ----------- 7. FILE SENT TO THE BENCH CLERK 23.04.2010 ------ -------------- 8. DATE ON WHICH FILE GOES TO THE ---------------- -------------------- 9. DATE OF DISPATCH OF ORDER ---------------- - --------------------