Century Tiles Ltd., Sabarkantha v. The Dy.CIT, Sabarkantha Circle, Himatnagar

ITA 410/AHD/2016 | 2008-2009
Pronouncement Date: 27-09-2016 | Result: Allowed

Appeal Details

RSA Number 41020514 RSA 2016
Assessee PAN AACCC2531M
Bench Ahmedabad
Appeal Number ITA 410/AHD/2016
Duration Of Justice 7 month(s) 4 day(s)
Appellant Century Tiles Ltd., Sabarkantha
Respondent The Dy.CIT, Sabarkantha Circle, Himatnagar
Appeal Type Income Tax Appeal
Pronouncement Date 27-09-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 27-09-2016
Date Of Final Hearing 15-09-2016
Next Hearing Date 15-09-2016
Assessment Year 2008-2009
Appeal Filed On 22-02-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH AHMEDABAD BEFORE SHRI S. S. GODARA JUDICIAL MEMBER AND SHRI MANISH BORAD ACCOUNTANT MEMBER. ITA. NOS. 409 & 410/AHD/2016 (ASSESSMENT YEARS:2007-08 & 2008-09) M/S. CENTURY TILES LIMITED AT & PO GANDHINAGAR TALOD ROAD HIMMATNAGAR 383001 APPELLANT VS. DCIT SABARKANTHA CIRCLE AAYKAR BHAVAN NEAR TOWN HALL OPP.PRATAPGARH PETROL PUMP HIMATNAGAR. RE SPONDENT & ITA. NOS. 731 & 732/AHD/2016 (ASSESSMENT YEARS:2007-08 & 2008-09) THE ASSISTANT COMMISSIONER OF INCOME-TAX SABARKANTHA CIRCLE 3 RD FLOOR AAYKAR BHAVAN NEAR GANDHI TOWN HALL HIMATNAGAR DIST.: SABARKANTHA - 383001 APPELLANT VS. M/S. CENTURY TILES LIMITED AT & PO GANDHINAGAR TALOD ROAD HIMATNAGAR 383001 RESPONDENT PAN NO. AACCC2531M / BY ASSESSEE : SHRI TUSHAR P. HEMANI A.R. / BY REVENUE : SHRI K. MADHUSUDAN SR.D.R. ITA NOS.409-410 & 731-732 ADH/2016 (CENTURY TILES L TD.) A.Y. 2007-08 & 2008-09) - 2 - /DATE OF HEARING : 15.09.2016 /DATE OF PRONOUNCEMENT : 27.09.2016 ORDER PER S. S. GODARA JUDICIAL MEMBER THIS BATCH OF FOUR APPEALS PERTAINS TO A.YS.2007-08 AND 2008-09. THE ASSESSEE AND REVENUE HAVE INSTITUTED TWO CROSS APPEALS EACH IN THE ABOVE IMPUGNED A.YS. AGAINST SE PARATE ORDERS OF THE CIT(A) BOTH DATED 04.01.2016 PASSED I N CIT(A)- 7/267 & 268/15-16; RESPECTIVELY IN PROCEEDINGS U/S .143(3) R.W.S. 147 OF THE INCOME TAX ACT 1961; IN SHORT THE ACT. 2. WE COME TO RIVAL PLEADINGS FIRST. A.Y.2007-08 C OMPRISES ASSESSEES APPEAL 409/AHD/2016. IT RAISES FOUR SUB STANTIVE GROUNDS THEREIN INTER ALIA IN CHALLENGING CIT(A)S ORDER ON THE ISSUES OF VALIDITY OF SECTION 147 REOPENING REJECT ION OF BOOKS OF ACCOUNTS U/S.145 OF THE ACT SUPPRESSION OF SALES A MOUNTING TO RS.2 86 56 600/- AND APPLICATION OF NET PROFIT RATE @ 13.03% ON THE ABOVE SUPPRESSED SALES AS MADE BY THE ASSESSING OFFICER IN THE IMPUGNED RE-ASSESSMENT FRAMED ON 31.10.2014. T HE REVENUES CROSS APPEALS ON THE OTHER HAND ASSESSED CORRECTNESS OF THE LOWER APPELLATE ORDER DELETING THE ADDITION OF RS.77 28 685/- MADE BY THE ASSESSING OFFICER ON ACC OUNT OF SUPPRESSION OF SALES PRICE THEREBY ADOPTING GROSS P ROFITS ON UNACCOUNTING CASH. 3. WE MOVE ON TO LATER A.Y.2008-09. THE ASSESSEES APPEAL LIKELY 410/AHD/2016 RAISES FOUR IDENTICAL GROUNDS E XCEPT TO THE ITA NOS.409-410 & 731-732 ADH/2016 (CENTURY TILES L TD.) A.Y. 2007-08 & 2008-09) - 3 - FACT THAT THE LATER TWO ISSUES INVOLVE DIFFERENT FI GURES OF SUPPRESSED SALES OF RS.3 00 34 920/- FOLLOWED BY AD DITION OF RS.35 08 078/- AFTER APPLYING NET PROFIT RATE OF 11 .68% ON ALLEGED SUPPRESSED SALES. THE REVENUES GRIEVANCE ON THE O THER HAND IS THAT THE CIT(A) HAS ERRED IN DELETING ADDITION OF R S.85 05 890/- MADE ON ACCOUNT OF SUPPRESSION OF SALES PRICE BY TA KING GP ON UNACCOUNTED CASH. 4. BOTH THE LD. REPRESENTATIVES AT THE OUTSET ARE A D IDEM THAT THIS ASSESSEE IS A LIMITED COMPANY. IT MANUFACTURE S CERAMIC TILES. THE DIRECTOR GENERAL OF CENTRAL EXCISE INTE LLIGENCE AHMEDABAD ZONAL UNIT APPEALS TO HAVE CONDUCTED AN INVESTIGATION ALLEGEDLY REVEALING THAT THE ASSESSEE HAD BEEN UNDER VALUING THE TILES MANUFACTURED THEREBY DECLAR ING ONLY 70% OF THE ACTUAL MRP IN THE INVOICES AND COLLECTED THE REMAINING SUMS IN CASH. THIS MADE THE ASSESSING OFFICER TO R EOPEN ASSESSMENTS BY ISSUING SECTION 148 NOTICES DATED 24 .03.2014. HE ACCORDINGLY FRAMED THE IMPUGNED RE-ASSESSMENT DE TERMINING SUPPRESSIONS OF SALES OF RS.2 86 56 600/- AND RS.3 00 34 920/- AND THEREAFTER ADOPTED GP @40% THEREUPON TO THE TUN E OF RS.1 14 62 640/- AND RS.1 20 13 968/-; RESPECTIVELY ALONG WITH STATUTORY INTEREST U/S.234B&C OF THE ACT. 5. THE ASSESSEE PREFERRED SEPARATE APPEALS. LD. CI T(A) PARTLY ACCEPTED THE SAME TO THE EXTENT INDICATED THE ABOVE NARRATED PLEADINGS OF BOTH THE PARTIES. THIS LEADS THE ASSE SSEE AS WELL AS REVENUE AGGRIEVED. 6. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO TH E VARIOUS ISSUES RAISED IN THE INSTANT CROSS APPEALS. A PERU SAL OF CASE FILES ITA NOS.409-410 & 731-732 ADH/2016 (CENTURY TILES L TD.) A.Y. 2007-08 & 2008-09) - 4 - INDICATES THAT THE CO-ORDINATE BENCH IN A.Y. 2005-0 6 IN IDENTICAL APPEALS ITA NOS.2570 & 2748/AHD/2012 DECIDED ON 03. 12.2015 HAS RESTORED THE VERY ISSUES BACK TO THE CIT(A) WIT H A DIRECTION TO DECIDE THE SAME AFRESH IN THE LIGHT OF FINAL OUTCOM E IN EXCISE PROCEEDINGS (SUPRA) FORMING THE BASIS OF THE IMPUGN ED SUPPRESSED SALES ADDITION. BOTH THE LD. REPRESENTA TIVES AGREE THAT THERE IS NEITHER ANY DISTINCTION FACTS NOR LAW IN THESE TWO ASSESSMENT YEARS BEFORE US VIS A VIS THAT ALREADY A DJUDICATED BY THE LD. CO-ORDINATE BENCH. WE ACCORDINGLY DIRECT T HE LD. CIT(A) TO DECIDE THESE CASES ALONG WITH ASSESSEES APPEALS ST ATED TO BE PENDING FOR A.Y.2005-06. ALL THESE FOUR APPEALS AR E ACCEPTED FOR STATISTICAL PURPOSES. 7. ALL THESE FOUR APPEALS ARE ALLOWED FOR STATISTIC AL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS THE 27 TH DAY OF SEPTEMBER 2016. SD/- SD/- (MANISH BORAD) (S. S. GODAR A) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 27/09/2016 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )* + --. . /0 / DR ITAT AHMEDABAD 1 + 23 4 5 / GUARD FILE. BY ORDER / . // . /0