The ITO, Ward-2, Surendranagar V. Shri Kirankumar Mahadevbhai Rathi, Surendranagar

ITA 1/RJT/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 62814 (ITAT-RAJKOT)
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 25-05-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 03-01-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MK SINGH
• Assessee Lawyers: BAHETI BHADADA
• Keywords: Additional evidence

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT. . .. . . .. . , , , , . .. . . .. . , , , , $ $ $ $ BEFORE SHRI T. K. SHARMA, JM AND SHRI D. K. SRIVAST AVA, AM ITA NOS.01 & 02/RJT/2012. / ASSESSMENT YEAR 2005-6 & 2006-07 THE INCOME-TAX OFFICER, WARD-2, SURENDRANAGAR. ( */ APPELLANT) VS. SHRI KIRANKUMAR MAHADEVBHAI RATHI, PROP.OF KIRANKUMAR & CO MEHTA MARKET,SURENDRANAGAR. PAN;AAYPR6013J. +,*/ RESPONDENT - / REVENUE BY SHRI M. K. SINGH, D.R. /- / ASSESSEE BY SHRI BAHETI BHADADA, C.A. - / DATE OF HEARING 25-05-2012 - / DATE OF PRONOUNCEMENT 01- 06-2012 / / / / ORDER . .. . . . . . , , , , / T. K. SHARMA, J. M. THESE TWO APPEALS BY THE REVENUE ARE AGAINST THE TWO SEPARATE ORDERS OF LD. CIT(A)-XVI, AHMEDABAD BOTH DATED 12-10-2011 DELETING THE ADDITION OF RS.17,90, 121/- AND RS.19,04,991/- MADE BY AO ON ACCOUNT OF UNDER VALUATION OF CLOSING STOCK FOR THE ASSESSMENT YEARS 2005-06 AND 2006-07 RESPECTIVELY. 2. BRIEFLY STATED THE FACTS ARE THAT DURING THE ASS ESSEE IS AN INDIVIDUAL ENGAGED IN TREADING OF GRAINS IN HIS PROPRIETARY CO NCERNS VIZ; M/S. KIRANKUMAR & CO. FOR THESE TWO ASSESSMENT YEARS, THE AO MADE TH E ADDITION ON ACCOUNT OF UNDER VALUATION OF CLOSING STOCK AS THE ASSESSEE FA ILED TO PRODUCE DAY-TO-DAY STOCK REGISTER IN ORDER TO VERIFY THE STAND OF AO T HAT HE HAS VALUED THIS STOCK AT FIFO METHOD. ON APPEAL, IN THE IMPUGNED ORDERS, TH E LD. CIT(A)DELETED THE ADDITION FOR BOTH THE ASSESSMENT YEARS ON THE GROU ND THAT BEFORE HIM, THE ASSESSEE HAS PRODUCED A STOCK REGISTER. AGGRIEVED WITH THE ORDER OF LD. CIT(A), THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. ITA NOS. 01 & 02/RJT/2012 2 3. AT THE TIME OF HEARING, ON BEHALF OF REVENUE, SH RI M. K. SINGH. D.R. APPEARED AND CONTENDED THAT BEFORE THE AO, ASSESSEE FAILED TO ESTABLISH THAT HE HAS VALUED THIS STOCK AT FIFO METHOD. THE LD. D.R. POINTED OUT THAT ASAESSING OFFICER ALLOWED ENOUGH OPPORTUNITY TO THE ASSESSEE TO PRODUCE A STOCK REGISTER TO JUSTIFY THE VALUE OF CLOSING STOCK BY FURNISHING RE LEVANT FACT OF THE BILL ON WHICH WAY THE ASSESSEE HAS VALUED THE CLOSING STOCK. THEY WERE NOT PRODUCED BEFORE THE ASSESSING OFFICER. IN THE IMPUGNED ORDER, THE LD. CIT(A) DELETED THE ADDITION BY ADMITTING ADDITIONAL EVIDENCE WITHOUT OFFERING A N OPPORTUNITY TO ASSESSING OFFICER OR CALLING THE REMAND REPORT. HE ACCORDIN GLY, CONTENDED THAT ORDER OF LD. CIT(A) BE SET ASIDE AND ADDITION MADE BY ASSESSING OFFICER ON ACCOUNT OF CLOSING STOCK FOR BOTH THE ASSESSMENT YEARS BE REST ORED. 4. AS AGAINST THIS, SHRI BAHETI BHADADA, C.A. APPEA RED FOR THE ASSESSEE POINTED OUT THAT HE IS WILLING TO PRODUCE THE STOCK REGISTER BEFORE THE AO IN CASE THIS ISSUE IS REMANDED TO THE FILE OF AO. 5. AFTER HEARING BOTH THE SIDES, WE HAVE CAREFULLY GONE THOUGH THE ORDER OF AUTHORITIES BELOW. ADMITTEDLY, BEFORE THE ASSESSIN G OFFICER, ASSESSEE FAILED TO PRODUCE STOCK REGISTER AND ALSO TO JUSTIFY THE VALU E OF CLOSING STOCK BY FURNISHING RELEVANT FACTS AND BILLS ON WHICH HE VALUED THE CLO SING STOCK FOR BOTH THE ASSESSMENT YEARS. BE THAT IT MAY BE, NOW ASSESSEE IS WILLING TO PRODUCE THE SAME BEFORE THE ASSESSING OFFICER, THEREFORE, IN TH E INTEREST OF JUSTICE, WE SET ASIDE THE ORDER OF LD. C.I.T.(A) WITH THE DIRECTION THAT ASSESSEE SHALL FURNISH THE DAY-TO-DAY CLOSING STOCK REGISTER AND ALSO FURNISH THE RELEVANT ACTS OF THE BILL ON THE BASIS OF WHICH, HE HAS VALUED THE CLOSING STOCK ON 31-03-2005 AND 31-03- 2006. THE ASSESSING OFFICER .WILL EXAMINE THE SAME AND RE-WORK OUT THE ADDITION IF ANY, REQUIRED TO BE MADE ON ACCOUNT OF UNDER VAL UATION OF CLOSING STOCK FOR BOTH THE ASSESSMENT YEARS. 6. IN THE RESULT, FOR THE STATISTICAL PURPOSES, THE APPEALS OF REVENUE FOR BOTH THE ASSESSMENT YEARS ARE ALLOWED. ITA NOS. 01 & 02/RJT/2012 3 THIS ORDER IS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED HEREINABOVE. SD/- SD/- ( .. / D. K. SRIVASTAVA) ( .. / T. K. SHARMA) / ACCOUNTANT MEMBER /JUDICIAL MEMBER 3/ DATE 01-06-2012. /RAJKOT - -- - +4 +4 +4 [phone] / COPY OF ORDER FORWARDED TO:- 1. * / APPELLANT-. SHRI KIRANKUMAR MAHADEVBHAI RATHI, P ROP.OF KIRANKUMAR & CO., MEHTA MARKET, SURENDRANAGAR. 2. +,* / RESPONDENT- THE INCOME-TAX OFFICER,WARD-2, SUREN DRANAGAR.. 3. 9 / CONCERNED CIT-V, AHMEDABAD. 4. 9- / CIT (A)-XVI, AHMEDABAD. 5. 4 +, , / DR, ITAT, RAJKOT 6. / GUARD FILE. / BY ORDER , ASSTT. REGISTRAR , INCOME TAX APPELLATE TRIBUNAL, RAJKOT.