Shree Om Rolling Mills Pvt. Ltd., Jalna V. Addl.CIT, Range-1,Aurangabad, Aurangabad

ITA 125/PUN/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2683 (ITAT-PUNE)
• Duration Of Justice: 4 year(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 18-11-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 23-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE , . . , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI R.K. PANDA, AM . / ITA NO S . 125 & 127/PN/2012 ASSESSMENT YEARS: 2007 - 08 & 2008 - 09 SHR EE OM ROLLING MILLS PVT. LTD., D - 51/2, ADDL. MIDC AREA, JALNA 431203 . / APPELLANT PAN: AA AC T 6 141J VS. THE ADDL . COMMISSIONER OF INCOME TAX, RANGE 1 , AURANGABAD . / RESPONDENT ITA NO S . 430 & 431 /PN/201 2 ASSESSMENT YEAR S : 200 7 - 0 8 & 2008 - 09 THE ADDL . COMMISSIONER OF INCOME TAX, RANGE 1 , AURANGABAD . / APPELLANT RANGE 1 , AURANGABAD . / APPELLANT VS. SHREE OM ROLLING MILLS PVT. LTD., D - 51/2, ADDL. MIDC AREA, JALNA 431203 . / RESPONDENT PAN: AA ACT6141J ITA NOS. 21 1 TO 213 /PN/201 2 ASSESSMENT YEAR S : 200 6 - 0 7 TO 2008 - 09 ROOPAM STEEL ROLLING MILLS , C - 53 , ADDL. MIDC AREA, JALNA 431203 . / APPELLANT PAN: AA BFR7873D VS. THE ADDL . C OMMISSIONER OF INCOME TAX, RANGE 1 , AURANGABAD . / RESPONDENT ITA NO S . 125 & 127 /PN/20 1 2 ITA NO S . 430 & 431 /PN/201 2 ITA NO S . 211 TO 213 /PN/201 2 ITA NO S . 432 TO 434 /PN/20 1 2 ITA NOS.140 & 141/PN/2012 ITA NOS.629 & 630/PN/2012 2 ITA NO S . 43 2 TO 434 /PN/201 2 ASSESSMENT YEAR S : 200 6 - 0 7 TO 2008 - 09 THE ADDL . COMMISSIONER OF INCOME TAX, RANGE 1 , AURANGABAD . / APPELLANT VS. ROOPAM STE EL ROLLING MILLS, C - 53, ADDL. MIDC AREA, JALNA 431203 . / RESPONDENT PAN: AA BFR7873D ITA NO S . 140 & 141 /PN/201 2 ASSESSMENT YEAR S : 20 06 - 07 & 2007 - 08 SHIVSHAKTI RE - ROLLING MILLS PVT. LTD., C - 57, ADDL. MIDC AREA, AURANGABAD ROAD, JA LNA 431 203. PAN: AAICS1136J . / APPELLANT VS. THE ADDL. COMMISSIONER OF INCOME TAX , RANGE - 1, AURANGABAD. . / RESPONDENT ITA NO S . 629 & 630 /PN/201 2 ASSESSMENT YEAR S : 20 06 - 07 & 2007 - 08 THE INCOME TAX OFFICER , WARD 1(3), JALNA. . / APPELLANT VS. SHIVSHAKTI RE - ROLLING MILLS PVT. LTD., C - 57, ADDL. MIDC AREA, AURANGABAD ROAD, JALNA 431 203. PAN: AAICS1136J . / RESPONDENT ITA NO S . 125 & 127 /PN/20 1 2 ITA NO S . 430 & 431 /PN/201 2 ITA NO S . 211 TO 213 /PN/201 2 ITA NO S . 432 TO 434 /PN/20 1 2 ITA NOS.140 & 141/PN/2012 ITA NOS.629 & 630/PN/2012 3 CORRIGENDUM PER SUSHMA CHOWLA, JM : THE PRESENT APPLI CATION HAS BEEN MOVED BY THE RESPECTIVE ASSESSEES FOR CORRECTION OF CONSOLIDATED ORDER OF THE TRIBUNAL PASSED ON 15.07.2015. THE TRIBUNAL IN PARA 88 HAD HELD AS UNDER: - 88 . ADMITTEDLY, THE ASSESSEE HAD OFFERED ADDITIONAL INCOME ON THE SAID CLANDESTINE REMOVAL OF MATERIAL WITHOUT PAYMENT OF EXCISE DUTY, WHICH IS TO BE ADDED AS INCOME IN THE HANDS OF THE ASSESSEE. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE FAIRLY ADMITTED THAT IN CASE THE SAID ADDITIONAL INCOME HAS NOT BEEN ADDED WHILE COMPU TING THE INCOME IN THE HANDS OF THE ASSESSEE FOR THE RESPECTIVE YEARS, THE SAME MAY BE DIRECTED TO BE ADDED IN THE HANDS OF THE RESPECTIVE ASSESSEE IN RESPECTIVE YEARS. ACCORDINGLY, WE DIRECT THE ASSESSING OFFICER TO VERIFY FROM THE RECORDS FOR THE RESPEC TIVE YEARS AND INCLUDE THE ADDITIONAL INCOME ON ACCOUNT OF SUCH ADMITTED CLANDESTINE REMOVAL OF MATERIAL WITHOUT PAYMENT OF EXCISE DUTY, BY THE ASSESSEE EITHER BEFORE THE SETTLEMENT COMMISSION OR BEFORE THE EXCISE AUTHORITIES, IN THE HANDS OF THE ASSESSEE. 2. THE APPLICANT HAS POINTED OUT THAT INADVERTENTLY THE DIRECTION FOR CALCULATION OF ADDITIONAL INCOME TO BE MADE ON THE VALUE OF SUPPRESSED PRODUCTION @ 4% OR ACTUAL GP RATE DECLARED BY THE ASSESSEE FOR THE YEAR, WHICHEVER WAS HIGHER, IS OMITTED. IT W AS FURTHER POINTED OUT BY THE APPLICANT VIDE THE SAID APPLICATION DATED 29 . 12 .201 5 THAT THE FINDING OF CIT(A) IN BUNCH OF APPEALS WAS THAT THE ADDITIONAL INCOME OF PROFIT ON SUPPRESSED PRODUCTION WAS TO BE COMPUTED @ 4% OR GP RATE, WHICHEVER IS HIGHER AND THE REVENUE HAD CHALLENGED THE SAID STAND OF CIT(A) IN THE PRESENT APPEALS. IT WAS FURTHER CONTENDED THAT WHERE THE TRIBUNAL HAS REJECTED THE APPEAL OF THE DEPARTMENT, THE SAID FINDING OF THE CIT(A) SHOULD BE UPHELD. IT WAS FURTHER MENTIONED THAT SIMILAR DIRECTIONS HAVE BEEN GIVEN BY THE TRIBUNAL IN THE CASE OF KALIKA STEEL ALLOYS PVT. LTD. VS. ACIT IN ITA NOS.1258 TO 1264/PN/2012 & ACIT VS. KALIKA STEEL ALLOYS PVT. LTD. IN ITA NOS.1660 TO 1666/PN/2012, WHICH WAS PASSED ON 24.09.2015 BY A BENCH AND IN T HE CASE OF KALIKA STEEL JALNA PVT. LTD. VS. ACIT ITA NO S . 125 & 127 /PN/20 1 2 ITA NO S . 430 & 431 /PN/201 2 ITA NO S . 211 TO 213 /PN/201 2 ITA NO S . 432 TO 434 /PN/20 1 2 ITA NOS.140 & 141/PN/2012 ITA NOS.629 & 630/PN/2012 4 IN ITA NOS.1265 TO 1269/PN/2012 AND ACIT VS. KALIKA STEEL JALNA PVT. LTD. IN ITA NOS.1655 TO 1659/PN/2012, WHICH WAS ALSO PASSED ON 24.09.2015, HENCE A REQUEST WAS MADE TO PASS A CORRIGENDUM ORDER AMENDING P ARA 88 OF THE ORDER. 3. ON PERUSAL OF THE RECORD, WE FIND THAT BY AN ERROR, THE FINDINGS OF THE TRIBUNAL IN PARA 88 WITH SPECIAL REFERENCE TO FROM LINE 17 TO 22 , NEEDS CORRECTION TO THE EXTENT THAT THE ADDITIONAL INCOME TO BE ADDED IN THE HANDS OF THE ASS ESSEE IS EQUIVALENT TO PROFITS ON SUPPRESSED PRODUCTION @ 4% OR ACTUAL GP RATE DECLARED BY THE ASSESSEE WHICHEVER WAS HIGHER. IN VIEW THEREOF, WE PASS THIS CORRIGENDUM ORDER AND THE PARA 88 I.E. FROM LINE 17 TO 22 WOULD NOW BE SUBSTITUTED BY FOLLOWING PAR A. 88. ADMITTEDLY, THE ASSESSEE HAD OFFERED ADDITIONAL INCOME ON THE SAID CLANDESTINE REMOVAL OF MATERIAL WITHOUT PAYMENT OF EXCISE DUTY, SAID CLANDESTINE REMOVAL OF MATERIAL WITHOUT PAYMENT OF EXCISE DUTY, WHICH IS TO BE ADDED AS INCOME IN THE HANDS OF THE ASSESSEE. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSES SEE FAIRLY ADMITTED THAT IN CASE THE SAID ADDITIONAL INCOME HAS NOT BEEN ADDED WHILE COMPUTING THE INCOME IN THE HANDS OF THE ASSESSEE FOR THE RESPECTIVE YEARS, THE SAME MAY BE DIRECTED TO BE ADDED IN THE HANDS OF THE RESPECTIVE ASSESSEE IN RESPECTIVE YEAR S. ACCORDINGLY, WE DIRECT THE ASSESSING OFFICER TO VERIFY FROM THE RECORDS FOR THE RESPECTIVE YEARS AND INCLUDE THE ADDITIONAL INCOME ON ACCOUNT OF SUCH ADMITTED CLANDESTINE REMOVAL OF MATERIAL WITHOUT PAYMENT O F EXCISE DUTY, BY THE ASSESSEE EITHER BEFORE THE SETTLEMENT COMMISSION OR BEFORE THE EXCISE AUTHORITIES, IN THE HANDS OF THE ASSESSEE. ACCORDINGLY, WE DIRECT THE ASSESSING OFFICER TO VERIFY FROM THE RECORDS FOR THE RESPECTIVE YEARS AND INCLUDE IN THE HAND S OF ASSESSEE, THE ADDITIONAL INCOME @ 4% OR ACTUAL G.P. RATE DECLARED BY ITA NO S . 125 & 127 /PN/20 1 2 ITA NO S . 430 & 431 /PN/201 2 ITA NO S . 211 TO 213 /PN/201 2 ITA NO S . 432 TO 434 /PN/20 1 2 ITA NOS.140 & 141/PN/2012 ITA NOS.629 & 630/PN/2012 5 THE ASSESSEE FOR THAT YEAR , WHICHEVER IS HIGHER , ON VALUE OF SUCH ADMITTED CLANDESTINE REMOVAL OF MATERIAL WITHOUT PAYMENT OF EXCISE DUTY, BY THE ASSESSEE BEFORE THE EXCISE AUTHORITI ES. THUS, THE ASSESSEE IS DIRECTED TO FILE THE REQUISITE DETAILS OF PROCEEDINGS BEFORE THE EXCISE AUTHORITIES, BEFORE THE ASSESSING OFFICER IN ORDER TO COMPUTE THE ADDITIONAL INCOME IN THE HANDS OF ASSESSEE IN THE RESPECTIVE YEARS. 4. CONSEQUENTLY, THE CORRIGENDUM ORDER IS PASSED IN THE CASE OF THE RESPECTIVE ASSESSEES. THE BALANCE ORDER SHALL REMAIN UNCHANGED. SD/ - SD/ - SD/ - SD/ - ( R.K. PANDA ) ( SUSHMA CHOWLA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER PUNE ; DATED : 17 T H FEBRUARY , 2016. GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT(A), AURANGABAD ; 4. / THE CIT, AURANGABAD ; 5. , , / DR A , ITAT, PUNE; 6. / GUARD FILE . / BY ORDER , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE