DCIT, Hyderabad v. M/s Sriram Spinning Mills Ltd., Hyderabad

ITA 518/HYD/2010 | 2004-2005
Pronouncement Date: 09-07-2010 | Result: Dismissed

Appeal Details

RSA Number 51822514 RSA 2010
Assessee PAN AADCS4047B
Bench Hyderabad
Appeal Number ITA 518/HYD/2010
Duration Of Justice 2 month(s) 26 day(s)
Appellant DCIT, Hyderabad
Respondent M/s Sriram Spinning Mills Ltd., Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 09-07-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 09-07-2010
Assessment Year 2004-2005
Appeal Filed On 13-04-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A' HYDERABAD BEFORE SHRI G.C.GUPTA VICE PRESIDENT AND SHRI AKBER BASHA ACCOUNTANT MEMEBR ITA NO.518/HYD/2010 ASSTT. YEAR 2004-05 DCIT CIRCLE-3 (2) HYDERABAD V/S. M/S SRIRAM SPINNING MILLS LTD. HYDERABAD (PAN NO. AADCS 4047 B) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.V.N. CHARYA DR RESPONDENT BY : NONE O R D E R PER SHRI G.C. GUPTA VICE PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 200 4-05 IS DIRECTED AGAINST THE ORDER OF THE CIT (A). THE GROUND S OF THE APPEAL OF THE ASSESSEE ARE AS UNDER: '1. THE ORDER OF THE CIT (A) IS ERRONEOUS BOTH ON F ACTS AND LAW. 2. THE CIT (A) SHOULD HAVE APPRECIATED THE LEGISLAT IVE INTENTION IN INSERTING THE PROVISIONS OF SECTION 14 5A OF THE I.T. ACT. 3. THE CIT (A) SHOULD HAVE SUSTAINED THE ADDITION M ADE ON ACCOUNT OF EXCISE DUTY ON CLOSING STOCK AS THE PROV ISION CREATED TOWARDS EXCISE DUTY PAYABLE ON CLOSING STOC K OF FURNISHED GOODS IS ONLY A CONTINGENT LIABILITY AND NOT AN ASCERTAINED LIABILITY AS ON 31ST MARCH OF THE ACCO UNTING YEAR '. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE AT THE TIME OF THE HEARING OF THE APPEAL BEFORE THE TRIBUNAL. ACCORDINGL Y THE APPEAL OF THE REVENUE IS DECIDED EX-PARTE QUA THE ASSESSEE RESPONDEN T ON MERITS AFTER HEARING THE LEARNED DEPARTMENTAL REPRE SENTATIVE. ITA NO.518/HYD/2010 M/S SRIRAM SPINNING MILLS LTD. HYDERABAD. 2 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS RELIE D ON THE ORDER OF THE ASSESSING OFFICER. WE HAVE CONSIDERED THE SUBM ISSIONS OF THE LEARNED DEPARTMENTAL REPRESENTATIVE AND HAVE PE RUSED THE ORDER OF THE ASSESSING OFFICER AND THE CIT (A). WE FIND THAT T HE EXCISE DUTY PROVISION OF RS.6.95 LAKHS ON CLOSING STOCK AS ON 31-3-20 04 HAS BEEN REVERSED IN THE NEXT FINANCIAL YEAR. THE ASSESSEE HAS CLA IMED THAT IT IS NORMAL PRACTICE FOLLOWED IN THE EARLIER YEARS FOR THE PURPOSE OF VALUATION OF STOCK. WE FIND THAT THE CIT (A) HAS OBSER VED THAT THE PROVISION OF SEC.43B AND SEC.145A ARE INDEPENDENT SECTIO NS BUT THEY ARE NOT MUTUALLY EXCLUSIVE AND THE PROVISION OF THE A CT ARE TO BE INTERPRETED IN RELATION TO EACH OTHER IN A HARMONIOU S MANNER. THE CIT (A) FURTHER HELD THAT IT WOULD BE CORRECT TO TREAT TH E PROVISIONS OF SEC.145A AS SUBMISSIVE TO THE SAFETY VALVE MECHANISM LAID DOWN U/S 43B OF THE ACT AND ACCORDINGLY HELD THE CLAIM OF THE ASS ESSEE TO BE VALID AND DELETED THE ADDITION ON THIS COUNT. WE FIN D THAT THERE IS NO MISTAKE IN THE ORDER OF THE CIT (A) ON THIS ISSUE AND ACCORDINGLY THE ORDER OF THE CIT (A) IS CONFIRMED AND THE GROUNDS OF T HE APPEAL OF THE REVENUE ARE DISMISSED. 4. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 9-7-2010. SD/- SD/- (AKBER BASHA) (G.C. GUPTA) ACCOUNTANT MEMBER VICE-PRESIDENT PVV/SPS DATE: 9TH JULY 2010 COPY FORWARDED TO: 1. THE DY. COMMISSIONER OF INCOME TAX CIRCLE-3(2) ROOM NO.723 7TH FLOOR I.T. TOWERS AC GUARDS HYDERABAD 500004 2. M/S. SRIRAM SPINNING MILLS LTD. 3-6-168/4 HYDERGU DA HYDERABAD 3. THE COMMISSIONER OF INCOME-TAX (APPEALS) TIRUPATI. 4. THE COMMISSIONER OF INCOME-TAX-3 HYDERABAD 5 THE DEPARTMENTAL REPRESENTATIVE ITAT HYDERABAD.