Bhagyalaxmi Steel Alloys Pvt Ltd, Jalna V. ACIT, Aurangabad

ITA 1292/PUN/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2695 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 8 month(s) 1 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: 2009-2010
• Appeal Filed On: 15-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE , . . , BEFORE MS. SUSHMA CHOWLA , JM AND SHRI R.K. PANDA , AM IT A NO. 1292 /PN/201 2 ASSESSMENT YEAR: 2009 - 10 BHAGYALAXMI STEEL ALLOYS PVT. LTD., G - 8, ADDITIONAL MIDC, PHASE II, JALNA 431203 . APPELLANT PAN: AA CCB4708R VS. THE ASST . COMMISSIONER OF INCOME TAX, CIRCLE 1 , AURANGABAD . RESPONDENT IT A NO. 1478 /PN/201 2 ASSESSMENT YEAR: 2009 - 10 THE ASST . COMMISSIONER OF INCOME TAX, THE ASST . COMMISSIONER OF INCOME TAX, CIRCLE 1 , AURANGABAD . APPELLANT VS. BHAGYALAXMI STEEL ALLOYS PVT. LTD., G - 8, ADDITIONAL MIDC, PHASE II, JALNA 431203 . RESPONDENT PAN: AA CCB4708R I TA NO. 1085 /PN/201 2 ASSESSMENT YEAR: 200 9 - 1 0 OMSAIRAM STEEL & ALLOYS PVT. LTD., C/O BANSILAL KABRA, ADVOCATE, 1 ST FLOOR, AMBIKA MARKET, JALNA 431203 . APPELLANT PAN: AA ACO6232H VS. THE JT . COMMISSIONER OF INCOME TAX, RANGE 1 , AURANGABAD . RESPONDENT 2 ITA NO.1292/PN/2012 & ORS BHAGYALAXMI STEEL ALLOYS PVT. LTD. & OTHERS ITA NO. 1469 /PN/201 2 ASSESSMENT YEAR: 2009 - 10 THE JT . COMMISSIONER OF INCOME TAX, RANGE 1 , AURANGABAD . APPELLANT VS. OMSAIRAM STEEL & ALLOYS PVT. LTD., P.NO. F - 1, 2 & 3, PHASE II, ADDL. MIDC AREA, JALNA 431203 . RESPONDENT PAN: AA ACO6232H ITA NO. 1452 /PN/201 2 ASSESSMENT YEAR: 2009 - 10 JALNA SIDDHIVINAYAK ALLOYS PVT. LTD., C - 4/1/2, ADDL. MIDC AREA, JALNA 431203 . APPELLANT PAN: A AACJ8761E VS. THE INCOME TAX OFFICER , WARD 1(3), JALNA . RESPONDENT WARD 1(3), JALNA . RESPONDENT ITA NO. 1477 /PN/201 2 ASSESSMENT YEAR: 2009 - 10 THE INCOME TAX OFFICER , WARD 1(3), JALNA . APPELLANT VS. JALNA SIDDHIVINAYAK ALLOYS PVT. LTD., C - 4/1/2, ADDL. MIDC AREA, JALNA 431203 . RESPONDENT PAN: A AACJ8761E ITA NO. 1557 /PN/201 2 A SSESSMENT YEAR: 2009 - 10 ADINATH CONCOST PVT. LTD., E - 12, PHASE 2, ADDL. MIDC AREA , JALNA 431203 . APPELLANT PAN: AA ECA9498F VS. THE INCOME TAX OFFICER , WARD 1(3) , JALNA . RESPONDENT 3 ITA NO.1292/PN/2012 & ORS BHAGYALAXMI STEEL ALLOYS PVT. LTD. & OTHERS ITA NO. 1628 /PN/201 2 ASSESSMENT YEAR: 2009 - 10 TH E INCOME TAX OFFICER , WARD 1(3) , JALNA . APPELLANT VS. ADINATH CONCOST PVT. LTD., E - 12, PHASE 2, ADDL. MIDC AREA , AURANGABAD ROAD, JALNA 431203 . RESPONDENT PAN: AA ECA9498F ITA NO. 1373 /PN/201 2 ASSESSMENT YEAR: 2009 - 10 GAJLAXMI STEEL PVT. LTD., F - 4, PHASE II, ADDL. MIDC, AURANGABAD ROAD, JALNA 431203 . APPELLANT PAN: AA CCG0547R VS. THE ASST . COMMISSIONER OF INCOME TAX, CIRCLE 1 , AURANGABAD . RESPONDENT CIRCLE 1 , AURANGABAD . RESPONDENT ITA NO. 1634 /PN/201 2 ASSESSMENT YEAR: 2009 - 10 THE ASST . COMM ISSIONER OF INCOME TAX, CIRCLE 1 , AURANGABAD . APPELLANT VS. GAJLAXMI STEEL PVT. LTD., F - 4, PHASE II, ADDL. MIDC, AURANGABAD ROAD, JALNA 431203 . RESPONDENT PAN: AA CCG0547R ITA NO. 1516 /PN/201 2 ASSESSMENT YEAR: 2009 - 10 SAPTASHRUNGI ALLOYS PVT. LTD., C - 3/1, ADDL. MIDC, AURANGABAD ROAD, JALNA 431203 . APPELLANT PAN: AA ICS2970E VS. THE ASST . COMMISSIONER OF INCOME TAX, CIRCLE 1 , AURANGABAD . RESPONDENT 4 ITA NO.1292/PN/2012 & ORS BHAGYALAXMI STEEL ALLOYS PVT. LTD. & OTHERS ITA NO. 1638 /PN/201 2 ASSESSMENT YEAR: 2009 - 10 THE ASST . COMMI SSIONER OF INCOME TAX, CIRCLE 1 , AURANGABAD . APPELLANT VS. SAPTASHRUNGI ALLOYS PVT. LTD., C - 3/1, ADDL. MIDC, AURANGABAD ROAD, JALNA 431203 . RESPONDENT PAN: AA ICS2970E ITA NO. 1476 /PN/201 2 ASSESSMENT YEAR: 2009 - 10 THE ASST . COMMISSIO NER OF INCOME TAX, CIRCLE 1 , AURANGABAD . APPELLANT VS. M/S. JAILAXMI CASTING & ALLOYS PVT. LTD., GUT NO.75, VILLAGE PHAROLA, PAITHAN ROAD, AURANGABAD . RESPONDENT PAN: AA BCJ4567F ITA NO. 1525 /PN/201 2 ASSESSMENT YEAR: 2009 - 10 M/S. JAILAX MI CASTING & ALLOYS PVT. LTD., GUT NO.75, VILLAGE PHAROLA, PAITHAN ROAD, AURANGABAD . APPELLANT PAN: AA BCJ4567F VS. THE ASST . COMMISSIONER OF INCOME TAX, CIRCLE 1 , AURANGABAD . RESPONDENT ITA NOS. 1432 & 1433 /PN/201 2 ASSESSMENT YEAR S : 20 04 - 05 & 200 9 - 1 0 MAULI STEEL PVT. LTD., C - 15, ADDL. MIDC, AURANGABAD ROAD, JALNA 431203 . APPELLANT PAN: AA BCM6718R VS. THE INCOME TAX OFFICER , WARD 1(3), JALNA . RESPONDENT 5 ITA NO.1292/PN/2012 & ORS BHAGYALAXMI STEEL ALLOYS PVT. LTD. & OTHERS ITA NO S . 1632 & 1633 /PN/201 2 ASSESSMENT YEAR S : 2004 - 05 & 200 9 - 1 0 THE INCOME TAX OFFICER , WARD 1(3), JALNA . APPELLANT VS. MAULI STEEL PVT. LTD., C - 15, ADDL. MIDC, AURANGABAD ROAD, JALNA 431203 . RESPONDENT PAN: AA BCM6718R ITA NO. 1467 /PN/201 2 ASSESSMENT YEAR: 200 9 - 1 0 THE ASST . COMMISSIONER OF I NCOME TAX, CIRCLE 1 , AURANGABAD . APPELLANT VS. M/S. RISHI STEEL & ALLOYS PVT. LTD., P.NO.C 55/7, ADDL. MIDC AREA, JALNA 431203 . RESPONDENT PAN: AABCR3131P ITA NO.1524/PN/2012 ASSESSMENT YEAR: 2009 - 10 M/S. RISHI STEEL & ALLOYS PVT. LTD., D - 52/7, ADDL. MIDC AREA, JALNA 431203 . APPELLANT PAN: AABCR3131P VS. THE ASST . COMMISSIONER OF INCOME TAX, CIRCLE 1 , AURANGABAD . RESPONDENT ITA NO. 1431 /PN/201 2 ASSESSMENT YEAR: 2009 - 10 SHREE OM ROLLING MILLS PVT. LTD., D - 51/ 2, ADDL. MIDC AREA, JALNA 431203 . APPELLANT PAN: AA ACT6741J VS. THE JT . COMMISSIONER OF INCOME TAX, RANGE 1 , AURANGABAD . RESPONDENT 6 ITA NO.1292/PN/2012 & ORS BHAGYALAXMI STEEL ALLOYS PVT. LTD. & OTHERS ITA NO. 1475 /PN/201 2 ASSESSMENT YEAR: 2009 - 10 THE JT . COMMISSIONER OF INCOME TAX, RANGE 1 , A URANGABAD . APPELLANT VS. SHREE OM ROLLING MILLS PVT. LTD., D - 51/2, ADDL. MIDC AREA, JALNA 431203 . RESPONDENT PAN: AA ACT6741J ITA NO. 1558 /PN/201 2 ASSESSMENT YEAR: 2009 - 10 SHRI ANAND OMPRAKASH PAHADE PROP. OF M/S. ADINATH STEEL RE - ROLL ING MILLS, A - 28/5 - 6, ADDL. MIDC AREA, AURANGABAD ROAD, JALNA 431203 . APPELLANT PAN: A LSPP4628A VS. THE INCOME TAX OFFICER , THE INCOME TAX OFFICER , WARD 1(3), JALNA . RESPONDENT ITA NO. 1629 /PN/201 2 ASSESSMENT YEAR: 2009 - 10 THE INCOME TAX OFFICER , WARD 1(3), J ALNA . APPELLANT VS. SHRI ANAND OMPRAKASH PAHADE PROP. OF M/S. ADINATH STEEL RE - ROLLING MILLS, A - 28/5 - 6, ADDL. MIDC AREA, AURANGABAD ROAD, JALNA 431203 . RESPONDENT PAN: A LSPP4628A CORRIGENDUM PER SUSHMA CHOWLA, JM : THE PRESENT APP LICATION HAS BEEN MOVED BY THE RESPECTIVE ASSESSEES FOR CORRECTION OF CONSOLIDATED ORDER OF THE T RIBUNAL PASSED ON 15.07.2015. THE TRIBUNAL IN PARA 13 HAD HELD AS UNDER: - 7 ITA NO.1292/PN/2012 & ORS BHAGYALAXMI STEEL ALLOYS PVT. LTD. & OTHERS 13. HOWEVER, IN CASE ANY OF THE ASSESSEE HAVE ADMITTED TO CLANDESTINE REMOVAL OF GOODS WITHOUT PAYMENT OF EXCISE DUTY, THEN ADDITIONAL INCOME RELATABLE TO SUCH TURNOVER IS TO BE ADDED IN THE HANDS OF THE SAID 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 WAS FURTHER POINTED OUT BY THE APPLICANT VIDE THE SAID APPLICATION DATED 11.01.2016 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 TR IBUNAL 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 12 64/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 THE CASE OF KALIKA STEEL JALNA PVT. LTD. VS. ACIT IN ITA NOS.1265 TO 1269/PN/2012 AND ACIT VS. KALIKA STEEL JALNA PVT. L TD. 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 PARA 13 OF THE ORDER. 3. ON PERUSAL OF THE RECORD, WE FIND THAT BY AN ERROR, THE FINDINGS OF THE TRIBUNAL IN PARA 13 WI TH SPECIAL REFERENCE TO FROM LINE 9 TO 13, NEEDS CORRECTION TO THE EXTENT THAT THE ADDITIONAL INCOME TO BE ADDED IN THE HANDS OF THE ASSESSEE IS EQUIVALENT TO PROFITS ON SUPPRESSED PRODUCTION @ 4% OR ACTUAL GP RATE DECLARED BY THE ASSESSEE WHICHEVER WAS HI GHER. IN VIEW THEREOF, WE PASS THIS CORRIGENDUM ORDER AND THE PARA 13 I.E. FROM LINE 9 TO 13 WOULD NOW BE SUBSTITUTED BY FOLLOWING PARA. 13 . HOWEVER, IN CASE , ANY OF THE ASSESSEE HAVE ADMITTED TO CLANDESTINE REMOVAL OF GOODS WITHOUT PAYMENT OF EXCISE DUTY, THEN ADDITIONAL INCOME 8 ITA NO.1292/PN/2012 & ORS BHAGYALAXMI STEEL ALLOYS PVT. LTD. & OTHERS RELATABLE TO SUCH TURNOVER IS TO BE ADDED IN THE HANDS OF THE SAID ASSESSEE . ACCORDINGLY, WE DIRECT THE ASSESSING OFFICER TO VERIFY FROM THE RECORDS FOR THE RESPECTIVE YEARS AND INCLUDE IN THE HANDS OF THE ASSESSEE , THE ADDITIONAL I NCOME @ 4% OR ACTUAL G.P. RATE DECLARED BY 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 AUTHORITIES . THUS, THE ASSESSEE IS DIRE CTED 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 I N THE CASE OF THE RESPECTIVE ASSESSEES. THE BALANCE ORDER SHALL REMAIN UNCHANGED. SD/ - SD/ - ( R.K. PANDA ) ( SUSHMA CHOWLA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER PUNE ; DATED : 17 TH FEBRUARY , 201 6 . GCVSR / COPY OF THE O RDER IS FORWARDED TO : 1 ) THE ASSESSEE; 2 ) THE DEPARTMENT; 3 ) THE CIT( A), AURANGABAD; 4 ) THE CIT, AURANGABAD; 5 ) THE DR A BENCH, I.T.A.T., PUNE; 6 ) GUARD FILE. / BY ORDER , //TRUE COPY// / SR. PRIVATE SECRETARY , / ITAT, PUNE