M/s Sree Annapurneshwari Ginning & Pressing Industries, Davangere V. ITO, Davangere

ITA 1141/BANG/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5516 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 18-04-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 31-05-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M K BIJU JT BENGALURU
• Keywords: Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ITA NO.1141/BANG/2016 ASSESSMENT YEAR : 2011-12 M/S. SREE ANNAPURNESHWARI GINNING & PRESSING INDUSTRIES, 110/5E, RMC LINK ROAD, DAVANGERE. PAN: ABQFS 2843C VS. THE INCOME TAX OFFICER, WARD 1, DAVANGERE. APPELLANT RESPONDENT APPELLANT BY : NONE RESPONDENT BY : SHRI M.K. BIJU, JT.CIT(DR)(ITAT-3), BENGALURU DATE OF HEARING : 18.04.2017 DATE OF PRONOUNCEMENT : 21.04.2017 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINS T THE ORDER OF CIT(APPEALS) INTER ALIA ON THE FOLLOWING GROUNDS:- 1. THE LEARNED CIT (A) HAS NOTED THE FACT THAT TH ERE WAS A FIRE ACCIDENT AT THE PREMISES ON 21/12/2010. WITH T HE ASSISTANCE OF THE FIRE BRIGADE, THE FIRE WAS EXTINGUISHED. THE RE WAS LOSS OF MERCHANDISE AND SINCE THE GOODS WERE COVERED BY INS URANCE COMPANY, THE SURVEYOR, APPROVED BY THE GOVERNMENT A ND CHARTERED ENGINEER SHRI. B.R. MANJUNATH, VISITED AN D INSPECTED THE ENTIRE PREMISES AND ASSESSED THE LOSS ON ACCOUN T OF FIRE AND ITA NO. 1141/BANG/2016 PAGE 2 OF 3 DETERMINED SALVAGE AMOUNT PAYABLE TO THE ASSESSEE. THE ASSESSEE HAS FILED COMPLETE REPORT OF THE SURVEYOR WHICH CON TAINS FULL DETAILS OF STOCK AS PER BOOKS AS ON THE DATE OF FIR E, PHYSICAL STOCK TAKEN BY THE SURVEYOR, FIRE BRIGADE REPORT AND VALU E THEREOF. 2. THE AVERAGE PURCHASE PRICE AS WORKED BY THE LEAR NED CIT(A) IS RS.43.67 PER KG FOR KAPAS AND RS.78/- PER KG FOR COTTON LINT. 3. THE STOCK HAD SUFFERED EXTENSIVE DAMAGE AND AS PER THE INSURANCE VALUER, THE SALVAGE VALUE WAS 20% ONLY. H OWEVER THE APPELLANT HAD VALUED THE STOCK AT RS.38.22 PER KG F OR KAPAS AND RS.66.48 PER KG FOR COTTON LINT WHICH IS MUCH HIGHE R THAN THE SALVAGE VALUE DETERMINED BY THE INSURANCE VALUER. 4. AFTER APPRECIATING THE FACT OF THE DAMAGE TO TH E STOCK DUE TO FIRE, THE LEARNED (IT (A) FAILED TO APPRECIATE T HAT SUCH DAMAGED STOCK CANNOT BE VALUED ON THE BASIS OF THE PURCHASE VALUE, BUT SHOULD BE VALUED AT NET REALIZABLE VALUE. WHICH IS SIGNIFICANTLY LESS THAN THE PURCHASE VALUE. 5. THE APPELLANT INCLINES TO SUBMIT THE ADDITIONAL FACTS THAT WOULD BE URGED AT THE TIME OF HEARING, THE APPELLAN T CRAVES LEAVE TO AMEND, ALTER, DELETE SUCH FACTS AND ADD ADDITION AL EVIDENCES AS FACTS AND CIRCUMSTANCES OF THE APPELLANT'S CASE CIR CUMSPECTIVELY DEMAND. PRAYER SINCE THE APPELLANT HAS SUSTAINED HEAVY DAMAGE TO T HE STOCK AND PROPERTY AND THE DAMAGED STOCK ARE NOT WORTH THE PU RCHASE VALUE. THE APPELLANT TAKING IN TO ACCOUNT THE FAIR REALIZA BLE VALUE HAD ADOPTED THE RATE FOR VALUATION OF STOCK. HENCE, THE APPELLANT PRAYS TO ACCEPT THE VALUATION ADOPTED BY THE APPELL ANT IN THE INTEREST OF NATURAL JUSTICE. 2. THIS APPEAL WAS LISTED FOR HEARING ON 18.04.2017 , BUT NONE APPEARED ON BEHALF OF THE ASSESSEE, DESPITE SERVICE OF THE NOTICE OF HEARING. AD CARD IS PLACED ON RECORD. SINCE THE AS SESSEE DID NOT APPEAR, ITA NO. 1141/BANG/2016 PAGE 3 OF 3 WE HAVE NO OPTION, BUT TO HEAR THE APPEAL EX PARTE, QUA THE ASSESSEE. ACCORDINGLY, THE REVENUE WAS HEARD. 3. WE HAVE CAREFULLY EXAMINED THE ORDER OF THE CIT( APPEALS) ON THE IMPUGNED GROUNDS AND WE FIND THAT HE HAS RIGHTLY AD JUDICATED THE ISSUES IN DETAIL AND WE FIND NO INFIRMITY THEREIN. ACCORDING LY, WE CONFIRM THE ORDER OF CIT(APPEALS). 4. IN THE RESULT, THE APPEAL OF ASSESSEE IS DISMISS ED. PRONOUNCED IN THE OPEN COURT ON THIS 21 ST DAY OF APRIL, 2017. SD/- SD/- ( S. JAYARAMAN ) (SUNIL KUMAR YA DAV ) ACCOUNTANT MEMBER JUDIC IAL MEMBER BANGALORE, DATED, THE 21 ST APRIL, 2017. / D ESAI S MURTHY / COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.