M/s. Nur Biri Works Pvt. Ltd., Kolkata v. DCIT, Circle - 8, Kolkata, Kolkata

ITA 899/KOL/2011 | 2004-2005
Pronouncement Date: 09-09-2011

Appeal Details

RSA Number 89923514 RSA 2011
Assessee PAN AAACN9000G
Bench Kolkata
Appeal Number ITA 899/KOL/2011
Duration Of Justice 2 month(s) 24 day(s)
Appellant M/s. Nur Biri Works Pvt. Ltd., Kolkata
Respondent DCIT, Circle - 8, Kolkata, Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 09-09-2011
Appeal Filed By Assessee
Bench Allotted B
Tribunal Order Date 09-09-2011
Assessment Year 2004-2005
Appeal Filed On 15-06-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOL KATA () BEFORE /AND . ! . '# ) [BEFORE HONBLE SRI MAHAVIR SINGH JM & HONBLE SHR I C. D. RAO AM] $ $ $ $ / I.T.A NO. 899/KOL/2011 %& '( %& '( %& '( %& '(/ // / ASSESSMENT YEAR : 2004-05 M/S. NUR BIRI WORKS PVT. LTD. VS DEPUTY COMMISSI ONER OF INCOME-TAX (PAN AAACN 9000 G) CIRCLE-8 KOLKATA. (*+ /APPELLANT ) ( -*+/ RESPONDENT ) FOR THE APPELLANT: SHRI C. GOSWAMI FOR THE RESPONDENT: SHRI P. S. DUTTA '. / ORDER PER MAHAVIR SINGH JM ( ) THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A)-VIII KOLKATA IN APPEAL NO.350/CIT(A)-VIII/KOL/09-10 VIDE DATED 10.01.2011. ASSESSMENT WAS FRAMED BY DCIT CIRCLE-8 KOLKATA U/S. 147 R.W.S. 143(3) OF THE INC OME TAX ACT 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2004-05 VIDE HIS ORD ER DATED 18.12.2009. 2. ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGAINST ORDER OF CIT(A) CONFIRMING THE ACTION OF ASSESSING OFFICER IN UPHOLDING THE ADDITION OF UNDE R VALUATION OF CLOSING STOCK TO THE EXTENT OF RS.25 28 905/-. FOR THIS ASSESSEE HAS RAISED FOLLO WING GROUND NO. 2: FOR THAT HAVING DUE REGARD TO THE FACT THAT THE AP PELLANT SUBMITTED WRITTEN SUBMISSIONS FROM TIME TO TIME DURING THE COURSE OF HEARINGS STA TING THE METHOD ADOPTED FOR VALUATION OF CLOSING STOCK THE ASSESSING OFFICER SHOULD NO T HAVE ADDED BACK RS.25 28 905/- ON THE PLEA OF UNDER VALUATION. IN FACT THE ASSESS ING OFFICER DID NOT CONSIDER THE VALUATION ADOPTED ON NET GOOD BIRI AND CHAT REJ ECTED BIRI AS ON THE CLOSING DATE. THE APPELLANT IN THE WRITTEN SUBMISSIONS HAD NARRATED THE FULL DETAILS IN REGARD TO TOTAL PRODUCTION (NET BIRI AND CHAT BIRI) ALONG WIT H THE COST INCURRED FOR THE SAID PRODUCTION AND ALSO THE METHOD OF VALUATION OF CLOS ING STOCK ADOPTED CONSISTENTLY FOR VALUATION OF STOCK BY THE COMPANY SINCE ITS INCORPO RATION. THEREFORE THE ADDITION OF RS.25 28 905/- IS LIABLE TO BE DELETED. 3. WE HAVE HEARD RIVAL CONTENTIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT ASSESSING OFFICER BASED ON COST OF PRO DUCTION FOR ASSESSMENT YEAR 2004-05 VALUED CLOSING STOCK AS ON 31.3.2004 AT RS.56 51 05 2/- AS AGAINST THE DISCLOSED CLOSING STOCK OF ASSESSEE AT RS.31 22 147/-. THEREBY ASSESSING OFFI CER MADE ADDITION FOR UNDER VALUATION OF 2 ITA 899/K/2011 NUR BIRI WORKS PVT. LTD. A.Y.04-05 CLOSING STOCK OF FINISHED GOODS BY A SUM OF RS.25 2 8 905/-. AGGRIEVED ASSESSEE PREFERRED APPEAL BEFORE CIT(A) WHO ALSO CONFIRMED THE ACTION OF ASSESSING OFFICER. AGGRIEVED NOW ASSESSEE IS IN APPEAL BEFORE US. BEFORE US LD. COU NSEL FOR ASSESSEE STATED THAT ASSESSING OFFICER HAS VALUED CLOSING STOCK ON THE BASIS OF CO ST OF PRODUCTION AT RS.85 58 PER THOUSAND BIRI STICKS WITHOUT CONSIDERING THE DETAILS OF VALUATION OF CLOSING STOCK SUBMITTED BY HIM. IT WAS ALSO CONTENDED THAT IN THIS BUSINESS I.E. PRODUCTIO N OF BIRI A COMMON PRACTICE IS FOLLOWED THAT NO WAGES IS INCLUDED FOR DEFECTIVE BIRI PRODUCED WH ICH ARE TERMED AS SECOND QUALITY CHAT BIRI AND WAGE RATE FOR PRODUCTION IS FIXED AS PER THOUSA ND BIRIS UNDER TRIPARTITE AGREEMENT BETWEEN BIRI MERCHANT ASSOCIATION BIRI LABOUR WORKERS UNI ON AND MUNSHI ASSOCIATION UNDER LABOUR COMMISSIONER OF STATE OF WEST BENGAL. ACCORDINGLY LABOUR IS PAID PER THOUSAND PRODUCTION OF BIRI AND THE QUESTION OF CONSIDERING ITS VALUATION OF CHAT BIRI DOES NOT ARISE. THE ASSESSEE FILED BEFORE US THE ENTIRE VALUATION OF CLOSING STOCK OF 6 48 43 732/- STOCKS OF CHAT BIRI AS ON 31.3.2004 VALUED AT RS.46.58 PER THOUSAND WHICH WA S ARRIVED AT AFTER DEDUCTING RS.39/- PER THOUSAND AS LABOUR CHARGES. THE CONTENTION OF THE ASSESSEE BEFORE US WAS THAT LOWER AUTHORITIES HAVE ERRED IN IGNORING THE QUALITY OF PRODUCTION BY APPLYING A FLAT RATE TO VALUE BOTH QUALITY OF BIRIS I.E. BIRI FOR PRODUCTION OF SECOND QUALITY CH AT BIRI. THE ASSESSEE ENCLOSED THE FOLLOWING: MEMORANDUM OF SETTLEMENT DATED 17.10.2001 FOR FIXA TION OF WAGES RATE ON NET BIRI ROLLED WITH EFFECT FROM 01.11.2001 (ANNEXURE-A) ME MORANDUM OF SETTLEMENT DATED 20.01.2005 EFFECTIVE FROM 01.02.2005 (ANNEXURE-B) CENTRAL EXCISE PRODUCTION REGISTER IN RG 12A FOR NET (GOOD) BIRI PRODUCTIONS AND RG 12 (A) FOR 2 ND (CHAT) BIRI PRODUCTION OF ALL THE THREE FACTORIES SITUATED AT DUCKBANGLOW (RATANPUR) DEBIDASPUR (KANKURIA) AND 16 MILES (MALDA) FOR THE YEAR 2003-04 (ASSESSME NT YEAR 2004-05) AND FOR THE YEAR 2002-03 (ASSESSMENT YEAR 2003-04) (ANNEXURE-C) AND QUANTITATIVE DETAILS SHOWING QUALITY WISE PRODUCTION I.E. NET (GOOD) BIRI AND 2 ND (CHAT) BIRI AND VALUATION OF CLOSING STOCK FOR THE PRECEDING AND THE SUCCEEDING YEAR END ED 31.3.2003 AND 31.3.2005. 4. IT WAS ARGUED THAT THESE DETAILS WERE BEFORE THE ASSESSING OFFICER AND BEFORE CIT(A) BUT NONE OF THE AUTHORITIES BELOW HAVE CONSIDERED T HESE FACTS. THE ASSESSEES CONTENTION FURTHER WAS THAT THESE BIRI STICKS ARE EXCISABLE GO ODS AND QUANTITATIVE DETAILS AND EACH TYPE OF PRODUCTION ARE RECORDED IN SEPARATE REGISTERS CALLE D RG-12A WHICH ARE MANDATORY FOR BIRI MANUFACTURER AS PER CENTRAL EXCISE ACT. WE AFTER GOING THROUGH ORDERS OF LOWER AUTHORITIES I.E. ORDER OF CIT(A) AS WELL AS ASSESSMENT ORDER THAT NO NE OF THE AUTHORITIES BELOW HAVE GONE INTO THESE DETAILS AND PASSED ORDERS WITHOUT CONSIDERING THESE DETAILS. IN VIEW OF THIS WE ARE OF THE VIEW THAT IN CASE IF THESE DETAILS ARE CONSIDERED THERE WILL BE NO OCCASION TO MAKE ADDITION. ACCORDINGLY WE SET ASIDE THIS ISSUE OF UNDER VALUA TION TO THE FILE OF THE ASSESSING OFFICER FOR VERIFICATION OF THESE DETAILS IN CASE ASSESSING OF FICER FOUND THAT THESE DETAILS ARE IN ORDER THEN 3 ITA 899/K/2011 NUR BIRI WORKS PVT. LTD. A.Y.04-05 HE WILL NOT MAKE ANY ADDITION OTHERWISE HE WILL MAK E ADDITION IF FOUND ANY DIFFERENCE IN THE DETAILS. ASSESSING OFFICER IS DIRECTED ACCORDINGLY . 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. 6. ORDER PRONOUNCED IN OPEN COURT ON 09.09.2011 SD/- SD/- . ! ! ! ! . '# (C. D. RAO) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ( !# !# !# !#) )) ) DATED : 9 TH DAY OF SEPTEMBER 2011 /0 %12 3 JD.(SR.P.S.) '. 4 5''6- COPY OF THE ORDER FORWARDED TO: 1 . *+ / APPELLANT M/S. NUR BIRI WORKS PVT. LTD. 18/1A G ORACHAND LANE KOLKATA-700 014 2 -*+ / RESPONDENT DCIT CIRCLE-8 KOLKATA. 3 . .% ( )/ THE CIT(A) KOLKATA 4. .% / CIT KOLKATA 5 . => % / DR KOLKATA BENCHES KOLKATA - / TRUE COPY '.%?/ BY ORDER 2 /ASSTT. REGISTRAR .