Shri Someshwar Sahakari Sakkare Karkhane Niyamit., Belgavi V. Assistant Commissioner of Income Tax, Circle - 1, Belagavi

CO 2/PAN/2022

AI Insights

The case involves an appeal by the Assistant Commissioner of Income Tax, Circle \\u2013 1, Belagavi against the order of the Commissioner of Income Tax (Appeals), Belagavi, which had deleted an addition made by the AO on account of undervaluation of closing stock for the assessment year 2011-12. The assessee, Shri Someshwar Sahakare Karkhane Niyamit, valued its closing stock at Rs.2,525 per quintal, whereas the AO valued it at Rs.2,597 per quintal. The CIT(A) upheld the assessee's method of valuation, which had been consistently applied over the years. However, both parties agreed that the issue required further examination by the AO, leading to the remand of the matter.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132792 (ITAT-PANAJI)
• Duration Of Justice: 1 year(s) 2 month(s) 12 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 19-09-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: WT(D)
• Next Hearing Date: 10-09-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 07-07-2022
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P.S. SHIVSHANKAR

Judgement Text

आयकर अपीलीय अधिकरण न्यायपीठ पणजी में । IN THE INCOME TAX APPELLATE TRIBUNAL, PANAJI (Through Virtual Court) BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.408/PAN/2018 धििाारण वर्ा / Assessment Year : 2011-12 Assistant Commissioner of Income Tax, Circle – 1, Belagavi .......अपीलार्थी / Appellant बिाम / V/s. Shri Someshwar Sahakare Karkhane Niyamit, Siddasamudra, Post – Belwadi, Tal. – Bailhongal, Dist. – Belagavi PAN : AAAJS0517J ......प्रत्यर्थी / Respondent प्रत्याक्षेप सं. / CO No.02/PAN/2022 धििाारण वर्ा / Assessment Year : 2011-12 Shri Someshwar Sahakare Karkhane Niyamit, Siddasamudra, Post – Belwadi, Tal. – Bailhongal, Dist. – Belagavi PAN : AAAJS0517J .......अपीलार्थी / Appellant बनाम / V/s. Assistant Commissioner of Income Tax, Circle – 1, Belagavi ......प्रत्यर्थी / Respondent Assessee by : Shri Praveen Ghali Revenue by : Shri P.S. Shivshankar सुनवाई की तारीख / Date of Hearing : 11-09-2023 घोषणा की तारीख / Date of Pronouncement : 20-09-2023 2 ITA No. 408/PAN/2018 & CO No. 02/PAN/2022, A.Y. 2011-12 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : This appeal by the Revenue against the order dated 06-07-2018 passed by the Commissioner of Income Tax (Appeals), Belagavi [‘CIT(A)’] for assessment year 2011-12. The assessee has also filed Cross Objection in the appeal filed by the Revenue. 2. We find that this appeal was filed with a delay of 02 days. After hearing both the parties, we condone the said delay. 3. The ld. AR, Shri Praveen Ghali submits that the assessee is not interested to prosecute the cross objection. Hence, the same is dismissed as not pressed. 4. The Revenue raised five grounds of appeal amongst which the only issue emanates for consideration is as to whether the CIT(A) justified in deleting the addition of Rs.4,80,45,478/- made on account of undervaluation of closing stock. 5. We note that the assessee valued the closing stock at Rs.2,525/- per Quintal, whereas, the AO worked out the closing inventory of sugar at Rs.2,597/- per Quintal and accordingly added the difference under valuation to the income of the assessee. The CIT(A) deleted the addition made by the AO taking into consideration the method of valuation of stock being followed by the assessee year after year. On perusal of the assessment order, we note that the assessee itself filed cost working sheet of production as per which cost of production at various stages arrived towards factory cost inclusive of other overheads but before accounting of 3 ITA No. 408/PAN/2018 & CO No. 02/PAN/2022, A.Y. 2011-12 sales of by products at Rs.2,597/- per Quintal and action towards cost of final product at Rs.2,801/- per Quintal and there is no basis as evident from the impugned order whether to take into account the value at Rs.2,597/- or Rs.2,801/-, in the absence of which as both the parties agreed that the issue requires examination by the AO and fairly conceded to remand the matter to the file of AO for its fresh consideration. Therefore, taking into facts and circumstances of the case and in the interest of justice, we deem it proper to remand the matter to the file of AO for its fresh consideration. The assessee is liberty to file evidences, if any, in support of its claim. Thus, the grounds raised by the Revenue are allowed for statistical purpose. 6. In the result, the appeal of Revenue is allowed for statistical purpose and the cross objection raised by the assessee is dismissed. Order pronounced in the open court on 20 th September, 2023. Sd/- Sd/- (R.S. Syal) (S.S. Viswanethra Ravi) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; ददनाांक / Dated : 20 th September, 2023. रवव आदेश की प्रवतविवप अग्रेवषत / Copy of the Order forwarded to : 1. अपीिार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A), Belagavi. 4. The Pr. CIT, Belagavi. 5. ववभागीय प्रवतवनवि, आयकर अपीिीय अविकरण, पणजी, / DR, ITAT, Panaji. 6. गार्ड फ़ाइि / Guard File. //सत्यापपत प्रपत// True Copy// आदेशानुसार / BY ORDER, वररष्ठ वनजी सविव / Sr. Private Secretary आयकर अपीिीय अविकरण ,पुणे / ITAT, Pune