ITO CEN THANE, THANE V. K.K. TEX ENTERPRISES, MUMBAI

ITA 1147/MUM/2011

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 71035 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2006-2007
• Appeal Filed On: 08-02-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P K SHUKLA
• Keywords: Document seized; Documents seized

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL I II I BENCH, BENCH, BENCH, BENCH, MUMBAI MUMBAI MUMBAI MUMBAI , . . . ! ! ! ! , ' ' ' ' #$ #$ #$ #$ BEFORE BEFORE BEFORE BEFORE SHRI SHRI SHRI SHRI VIJAY PAL RAO, JM VIJAY PAL RAO, JM VIJAY PAL RAO, JM VIJAY PAL RAO, JM & & & & SHRI SHRI SHRI SHRI N. K. BILLAIYA N. K. BILLAIYA N. K. BILLAIYA N. K. BILLAIYA, AM , AM , AM , AM ./ I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1147 /MUM/2011 1147 /MUM/2011 1147 /MUM/2011 1147 /MUM/2011 ( % % % % & & & & / ASSESSMENT YEAR :2006-07) ./ I.T.A. NO. I.T.A. NO. I.T.A. NO. I.T.A. NO.1148 /MUM/2011 1148 /MUM/2011 1148 /MUM/2011 1148 /MUM/2011 ( % % % % & & & & / ASSESSMENT YEAR :2008-09) THE INCOME TAX OFFICER CENTRAL, THANE / VS. M/S K. K. TEX ENTERPRISES, FLAT NO. 24/2, PALS COMPOUND, KALYAN ROAD, BHIWANDI $' ' ./ ( ./ PAN/GIR NO. :AAGFK8890C ( ') / APPELLANT APPELLANT APPELLANT APPELLANT) .. ( *+') / RESPONDENT RESPONDENT RESPONDENT RESPONDENT) ') ') ') ') , , , , / APPELLANT BY : SHRI P. K. SHUKLA *+') *+') *+') *+') - -- - , , , , /RESPONDENT BY : SHRI MANI JAIN - -- - .' .' .' .' / DATE OF HEARING : 2 ND SEPTEMBER 2013 /0& /0& /0& /0& - -- -.' .' .' .' /DATE OF PRONOUNCEMENT: 6 TH SEPTEMBER 2013 #1 / O R D E R PER : , . . / VIJAY PAL RAO, JM THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAI NST TWO SEPARATE ORDERS OF THE COMMISSIONER OF INCOME TAX(A PPEALS) BOTH DATED 30.10.2010 FOR THE ASSESSMENT YEAR 2006-07 AND 2008 -09 RESPECTIVELY. 2. THE REVENUE HAS RAISED COMMON GROUNDS IN THESE A PPEALS. THE GROUNDS RAISED FOR THE ASSESSMENT YEAR 2008-09 ARE REPRODUCED AS UNDER: 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE, THE LD. CIT(A) WAS RIGHT IN GRANTING RELIEF OF ` 9, 55,149/- TO THE ASSESSEE. ITA NO. 1147 & 1148/M/2011 K. K. TEX ENTERPRISES 2 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) WAS RIGHT IN HOLDING THE CLAIM OF ASSESS EE THAT ACTUAL METER OF WOVEN CLOTH IS 24,19,922/- AS AGAINST NO O F METER PHYSICALLY WORKED OUT BY THE AO IS 21,01,539/- METE R. 3. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) WAS RIGHT IN ADMITTING FRESH EVIDENCES U /S 46(A) WITHOUT ALLOWING OPPORTUNITY TO AO. 3. WE HAVE HEARD THE LD. DR AS WELL AS THE LD. AR A ND CONSIDERED THE RELEVANT MATERIAL ON RECORD. AT THE OUTSET WE NOTE THAT THE TRIBUNAL HAS CONSIDERED AND DECIDED THIS ISSUE IN THE CROSS APPE ALS OF THE ASSESSEE IN ITA NO. 897, 898 AND 1489/M/2011 VIDE ORDER DATED 2 5.11.2011 IN PARA 29 AS UNDER: COMING TO GROUND NO. 2, FORM THE SEIZED DOCUMENTS AT PAGES-22 AND 34 TO ANNEXURE A-3/29 AT PAGE-168 AND 180 OF TH E PAPER BOOK, IT CAN BE SAID THAT THE LABOUR CHARGES ARE PA ID @ ` 3.25 PER METER FOR THE PERIOD FROM 1 ST APRIL 2002 TO 31 ST MARCH 2003. THE CLAIM OF THE ASSESSEE THAT FOR THE SUBSEQUENT YEARS , DUE TO INFLATION, THE LABOR CHARGES PAID HAS INCREASED, CA NNOT BE BRUSHED ASIDE. THIS BENCH OF THE TRIBUNAL IN M/S B. K. TEX CORP. AND MR. BHAGWAN G. GADA (SUPRA), HAS COME TO A CONC LUSION THAT LABOUR CHARGES COULD BE ALLOWED BY ADOPTING ` 3.00 PER METER. AS THE EVIDENCE IN THE SEIZED MATERIAL, IN THE CASE ON HAND, IN LEADING US TO A CONCLUSION THAT THE EXPENDITURE IS MORE THAN ` 3.00 PER METER LAID DOWN BY THE BENCH, AS SUGGESTED BY BOTH THE PARTIES, WE RESTORE THE MATER TO THE FILE OF ASSESS ING OFFICER FOR ADJUDICATION AFRESH IN ACCORDANCE WITH LAW. THE ASS ESSING OFFICER IS DIRECTED TO CONSIDER THE PROPOSITIONS LAID DOWN BY THIS BENCH IN THE CASE OF M/S B. K. TEX CORP. (SUPRA) AND IN T HE CASE OF MR. BHAGWAN G. GADA (SUPRA), AS WELL AS THE MATERIAL FO UND DURING THE COURSE OF SEARCH AND THE INFLATION FACTOR CLAIM ED BY THE ASSESSEE AND COME TO AN APPROPRIATE CONCLUSION. ACC ORDINGLY, WE SET ASIDE THE IMPUGNED ORDER PASSED BY THE COMMI SSIONER (APPEALS) AND RESTORE THIS ISSUE TO THE FILE OF ASS ESSING OFFICER FOR ADJUDICATION AFRESH. THUS, GROUND NO. 2, IS ALLOWED FOR STATISTICAL PURPOSES. 4. ACCORDINGLY THE ISSUE RAISED BY THE REVENUE IN T HESE APPEAL IS ALSO SET ASIDE TO THE RECORD OF THE AO IN TERMS OF THE D IRECTIONS AND ITA NO. 1147 & 1148/M/2011 K. K. TEX ENTERPRISES 3 OBSERVATION OF THIS TRIBUNAL IN ASSESSEES APPEAL ( SUPRA). THE AO IS DIRECTED TO DECIDE THE SAME AFRESH. 5. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 6 TH DAY OF SEPTEMBER 2013 SD/- SD/- ( . . ! ) ' #$ (N. K. BILLAIYA) ACCOUNTANT MEMBER ( ) % #$ (VIJAY PAL RAO) JUDICIAL MEMBER PLACE: MUMBAI : DATED: 6 TH SEPTEMBER 2013 SUBODH COPY FORWARDED TO: 1 APPELLANT 2 RESPONDENT 3 CIT 4 CIT(A) 5 DR /TRUE COPY/ BY ORDER DY /AR, ITAT, MUMBAI