MBS Hatcheries, CHENNAI V. ACIT, Coimbatore

ITA 1270/CHNY/2015

• Counselvise Citation: 127021714 RSA 2015
• Duration Of Justice: 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 21-12-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 27-05-2015
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTHJCIT
• Assessee Lawyers: T N SEETHARAMAN
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI ... , . , , BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.1270 /MDS./2015 ( ! '! / ASSESSMENT YEAR :2011-12) M /S.MBS HATCHERIES , 4, ALAGAPPA LAYOUT, VENKATESA COLONY, POLLACHI 642 001. VS. ASSISTANT COMMISSIONER OF INCOME TAX SALARY CIRCLE I, COIMBATORE.( PRESENTLY NON-CORPORATE CIRCLE 5, COIMBATORE ) PAN AAFFM 1603 A ( / APPELLANT ) ( / RESPONDENT ) #$ % & / APPELLANT BY : MR.T.N.SEETHARAMAN,ADVOCATE '(#$ % & / RESPONDENT BY : MR.A.V.SREEKANTH,JCIT, D.R ) * % +, / DATE OF HEARING : 21.12.2015 -' % +, /DATE OF PRONOUNCEMENT : 22.12.2015 / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE, AGGRIEVED B Y THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)-3, COIMBA TORE DATED ITA NO.1270 /MDS/2015 2 10.03.2015 IN ITA NO.425/2013-14 PASSED UNDER SEC. 143(3) READ WITH SECTION SEC. 250 OF THE ACT. 2. THE ASSESSEE HAS RAISED ELEVEN ELABORATE GROUND S IN ITS APPEAL, HOWEVER THE CRUX OF THE ISSUE IS THAT:- I) THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION OF ` 64,53.811/- MADE BY THE LD. ASSESSING OFFICER AS UNACCOUNTED SALES OF MEAT, TABLED EGGS AND MALE PARENTS. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSES SEE IS ENGAGED IN THE BUSINESS OF RUNNING AN INTEGRATE POULTRY FARM L IKE BREEDER FARM, HATCHERY, FEED MILL, GROWING OF BROILERS ETC. THE CASE WAS TAKEN UP FOR SCRUTINY AND FINALLY THE ASSESSMENT WAS COMPLET ED ON 15.02.2014 WHEREIN THE LD. ASSESSING OFFICER ADDED ` 64,53,811/- TO THE INCOME OF THE ASSESSEE AS UNACCOUNTED SALES. DURING THE CO URSE OF ASSESSMENT PROCEEDINGS, IT WAS NOTICED BY THE LD. A SSESSING OFFICER THAT THERE WERE DISCREPANCIES IN THE STOCK. IT IS ALSO MENTIONED BY THE LD. ASSESSING OFFICER IN HIS ORDER THAT THE ASSESSE E HAD ADMITTED UNACCOUNTED SALES. FURTHER IT WAS OBSERVED THAT TH E ASSESSEE WAS ITA NO.1270 /MDS/2015 3 NOT MAINTAINING STOCK RECORDS PROPERLY. THE ASSESS EE ALSO FAILED TO PRODUCE THE STOCK REGISTER BEFORE THE LD. ASSESSING OFFICER. THEREFORE, ANALYZING THE STOCK FROM THE AVAILABLE M ATERIALS ON RECORD, THE LD. ASSESSING OFFICER ARRIVED AT A CONCLUSION T HAT THE ASSESSEE HAD MADE UNACCOUNTED SALES FOR ` 64,53,811/- AND THEREFORE ADDED THE SAME TO THE INCOME OF THE ASSESSEE. 4. ON APPEAL, THE LD. CIT (A) ACCEPTING THE COMPUT ATION OF THE LD. ASSESSING OFFICER CONFIRMED HIS ORDER, AGGRIEVED BY WHICH THE ASSESSEE IS NOW ON APPEAL BEFORE US. 5. AT THE OUTSET THE LD. A.R. SUBMITTED THAT THE A SSESSEE HAS BEEN MAINTAINING PROPER BOOKS WITH RESPECT TO STOCK AND THE OBSERVATIONS OF THE LD. ASSESSING OFFICER THAT THE ASSESSEE HAS NOT PRODUCED STOCK REGISTER BEFORE THE LD. ASSESSING OF FICER IS INCORRECT. THE LD. A.R. FURTHER ARGUED STATING THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF LD. ASSESSING OFFICER FOR DENOV O CONSIDERATION. THE LD. D.R VEHEMENTLY OPPOSED TO THE SUBMISSIONS OF TH E LD. A.R. AND ARGUED BY STATING THAT THE ASSESSEE WAS NOT MAINTAI NING PROPER STOCK ITA NO.1270 /MDS/2015 4 RECORD AND THEREFORE THE REVENUE WAS LEFT OUT WITH NO OTHER OPTION BUT TO COMPUTE THE UNEXPLAINED SALES BASED ON THE A VAILABLE MATERIALS ON RECORD. HOWEVER, HE MAGNANIMOUSLY AGR EED FOR REMITTING BACK THE MATTER TO THE FILE OF LD. ASSESS ING OFFICER FOR FRESH CONSIDERATION. 6. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY PE RUSED THE MATERIALS AVAILABLE ON RECORD. THE LD. A.R. HAS AF FIRMED BEFORE US THAT THE ASSESSEE HAD BEEN MAINTAINING PROPER STOCK RECORDS AND THE STOCK BOOK WAS VERY MUCH AVAILABLE WITH THE ASSESSE E. THEREFORE IN THE INTEREST OF JUSTICE, WE HEREBY REMIT THE MATTER BACK TO THE FILE OF LD. ASSESSING OFFICER FOR DENOVO CONSIDERATION. WE ALSO HEREBY DIRECT THE ASSESSEE TO PRODUCE ALL THE RELEVANT DOC UMENTS, STOCK RECORDS, STOCK BOOKS AND BOOKS OF ACCOUNTS, ETC., B EFORE THE LD. ASSESSING OFFICER PROMPTLY AND CO-OPERATE WITH THE REVENUE IN THEIR PROCEEDINGS IN ORDER TO EXPEDITE THEIR ORDERS. WE A LSO MAKE IT CLEAR THAT IF THE ASSESSEE FAILS TO PRODUCE THE RELEVANT DOCUMENTS REQUIRED BY THE REVENUE, THEN THE REVENUE SHALL BE AT LIBERT Y TO PASS APPROPRIATE ORDER AS PER LAW AND MERITS BASED ON TH E MATERIALS ITA NO.1270 /MDS/2015 5 AVAILABLE ON RECORD, HOWEVER AFTER AFFORDING SUFFIC IENT OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. 7. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AS INDICATED HEREIN ABOVE. ORDER PRONOUNCED ON THE 22 ND DECEMBER, 2015 AT CHENNAI. SD/- SD/- ( . . . ) ( N.R.S.GANESAN ) ( . '#$ %' ) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED 22 ND DECEMBER,2015. K S SUNDARAM. % '+./ 0 /'+ /COPY TO: 1. #$ /APPELLANT 2. '(#$ /RESPONDENT 3. ) 1+ () /CIT(A) 4. ) 1+ /CIT 5. /4 '+5 /DR 6. 6! 7* /GF