ACIT, Alwar v. M/S VAST TEXTILES LTD., Alwar

ITA 778/JPR/2011 | 2006-2007
Pronouncement Date: 28-11-2014 | Result: Dismissed

Appeal Details

RSA Number 77823114 RSA 2011
Assessee PAN AABCV6360Q
Bench Jaipur
Appeal Number ITA 778/JPR/2011
Duration Of Justice 3 year(s) 2 month(s) 26 day(s)
Appellant ACIT, Alwar
Respondent M/S VAST TEXTILES LTD., Alwar
Appeal Type Income Tax Appeal
Pronouncement Date 28-11-2014
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 28-11-2014
Assessment Year 2006-2007
Appeal Filed On 01-09-2011
Judgment Text
IN THE INCOME TAX APPELALTE TRIBUNAL: JAIPUR BENCH JAIPUR BEFORE SHRI SHAILENDRA KUMAR YADAV JUDICIAL MEMBER AND SHRI B. C. MEENA ACCOUNTANT MEMBER. ITA.NO.778/JP/2011 (ASSESSMENT YEAR:2006-07) ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-2 ALWAR APPELLA NT VS. M/S. VAST TEXTILES LTD. JATIA AVENUE 15-B RIICO INDUSTRIAL AREA NEEMRANA DIST. ALWAR-301001 (RAJ.) RESPONDENT PAN: AABCV6360Q /BY APPELLANT : SHRI RAJESH OJHA D.R. / BY RESPONDENT : SHRI P. C. PARWAL A.R. /DATE OF HEARING : 27.11.2014 /DATE OF PRONOUNCEMENT : 28 .11.2014 I.T.A. NO. 778/JP/2011 A.Y. 2006-07 (ACIT VS. M/S. VAST TEXTILES LTD.) PAGE 2 ORDER PER SHAILENDRA KUMAR YADAV J.M: THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) ALWA R DATED 14.06.2011 FOR A.Y.2006-07 ON THE FOLLOWING GROUND: 1. THAT THE LD.CIT (A.) HAS ERRED IN LAW AS WELL AS ON THE FACTS AND CIRCUMSTANCES OF THE CASE IN DELETING THE ADDITION OF RS.22 43 330/- AS MADE ON ACCOUNT OF INVISIBLE LOSS AND NOT ALLOWED TO BE CARRY FORWARDE D AS MADE BY THE AO. 2. ASSESSEE IS ENGAGED IN BUSINESS OF TRADING OF CO TTON FABRIC AND OTHER TEXTILE PRODUCTS. 3. ONLY ISSUE RAISED BY REVENUE IS WITH REGARDS TO ADDITION OF RS.22 43 330/- AS MADE ON ACCOUNT OF INVISIBLE L OSS AND NOT ALLOWED TO BE CARRY FORWARDED AS MADE BY ASSESSING OFFICER. ASSESSING OFFICER OBSERVED THAT ASSESSEE CLAIMED IN PREARNA SYNTEX INVISIBLE LOSS OF 26392KG OF COTTON WHICH IS 0.66% OF RAW MATERIAL CONSUMED. ASSESSING OFFICER AFTER CON SIDERING THE STAND OF ASSESSEE MADE ADDITION OF RS.22 43 330 /- ON INVISIBLE LOSS AND DID NOT ALLOW LOSS TO BE CARRY F ORWARDED. 4. MATTER WAS CARRIED BEFORE FIRST APPELLATE AUTHOR ITY WHEREIN VARIOUS CONTENTIONS WERE RAISED ON BEHALF O F ASSESSEE HAVING CONSIDERED THE SAME CIT(A) GRANTED RELIEF ON ACCOUNT OF I.T.A. NO. 778/JP/2011 A.Y. 2006-07 (ACIT VS. M/S. VAST TEXTILES LTD.) PAGE 3 INVISIBLE LOSS AND ISSUE WAS CARRY FORWARDED TO RES TORE TO THE ASSESSING OFFICER. 5. SAME HAS BEEN OPPOSED BEFORE US ON BEHALF OF REV ENUE INTER ALIA SUBMITTING THAT CIT(A) WAS NOT JUSTIFIED IN DELETING THE ADDITION OF RS.22 43 330/- AS MADE ON ACCOUNT O F INVISIBLE LOSS AND NOT CONSEQUENTIALLY CARRY FORWARDED. ON O THER HAND LD. AUTHORIZED REPRESENTATIVE SUPPORTED THE ORDER O F CIT(A). 6. AFTER GOING THROUGH RIVAL SUBMISSION AND MATERIA L ON RECORD WE FIND THAT AS PER COPY OF SOUTH INDIAN TE XTILE RESEARCH ASSOCIATION (SITRA) NORMS FOR HARD WASTE SWEEP WASTE AND INVISIBLE LOSS WHICH SHOWS THAT 1% AVERAG E LOSS IS ADMITTED IN THIS LINE OF MANUFACTURING ACTIVITY IN COTTON BUSINESS. ASSESSING OFFICER HAS NOT BROUGHT ON REC ORD ANY MATERIAL EXCEPT ANALYZING THE PAST STATISTICS OF AS SESSEE IN DISALLOWING INVISIBLE LOSS. IN PAST ALSO ASSESSEE HAD CLAIMED INVISIBLE LOSS. ACCORDINGLY ADDITION WAS RIGHTLY DELETED BY CIT(A). ASSESSEES CLAIM THAT ASSESSING OFFICER HA S NOT CALCULATED BROUGHT FORWARDED BUSINESS LOSS CORRECT IN ASSESSMENT ORDER. THE ASPECT OF BROUGHT FORWARD BU SINESS LOSS HAS BEEN VERIFIED AND FOUND CORRECT AS ON PAGE 6 OF ASSESSMENT ORDER WHEREIN ASSESSING OFFICER HAS CAL CULATED NET LOSS AT RS.8 21 55 710/- WHEREAS IN SCHEDULE THIS B USINESS LOSS HAS BEEN CALCULATED AT RS.4 20 53 748/-. UNDE R CIRCUMSTANCES ASSESSING OFFICER WAS RIGHTLY DIRECT ED TO VERIFY THE FIGURES AND CALCULATE BROUGHT FORWARDED BUSINES S LOSS I.T.A. NO. 778/JP/2011 A.Y. 2006-07 (ACIT VS. M/S. VAST TEXTILES LTD.) PAGE 4 CORRECTLY BY CIT(A). THIS REASONED FINDING OF CIT( A) NEEDS NO INTERFERENCE FROM OUR SIDE. WE UPHOLD THE SAME. 7. AS A RESULT APPEAL FILED BY THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON THIS THE 28 TH DAY OF NOVEMBER 2014. SD/- SD/- (B. C. MEENA) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBE R TRUE COPY S.K.SINHA COPY FORWARDED TO: 1. THE APPELLANT- ACIT CIRCLE-2 ALWAR. 2. THE RESPONDENT- M/S. VAST TEXTILES LTD. 3. THE CIT 4. CIT(APPEALS) 5. THE DR 6. GUARD FILE (ITA NO. 778/JP/2011) BY ORDER A.R. JAIPUR.