ACIT, Hyderabad V. M/s Radiant Corporation Pvt. Ltd., Hyderabad

ITA 1351/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3387 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 24-03-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 26-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K J RAO
• Assessee Lawyers: GOPAL DAS MANDHANA
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B ', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO.556/HYD/10 : ASSES SMENT YEAR 2006-07 ITA NO.1351/HYD/10 : ASSE SSMENT YEAR 2007-08 DY./ASST COMMISSIONER OF INCOME TAX, CIRCLE 3(1), HYDERABAD V/S. M/S. RADIANT CORPORATION P. LTD., HYDERABAD. ( PAN AABCRO 0719 R ) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.J.RAO RESPONDENT BY : SHRI GOPAL DAS MANDHANA O R D E R PER G.C.GUPTA, VICE PRESIDENT: THESE TWO APPEALS BY THE REVENUE FOR THE ASSESSME NT YEARS 2006-07 AND 2007-08 ARE DIRECTED AGAINST THE ORDERS OF THE COMMISSIONER OF INCOME- TAX(APPEALS). SINCE A COMMON ISSUE IS INVOLVED, TH ESE APPEALS ARE BEING DISPOSED OFF WITH THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. GROUNDS OF APPEAL OF THE REVENUE IN ITA NO.556 /HYD/2010 FOR ASSESSMENT YEAR 2006-07 ARE AS UNDER- 1. THE ORDER OF THE CIT(A) IS AGAINST THE PROVISIO NS OF THE I.T. ACT. 2. THE CIT(A) HAS ERRED IN HOLDING THAT THE PROVISI ONS U/S. 43B ARE APPLICABLE EVEN ON AN UNASCERTAINED LIABILITY SUCH AS THE EXCISE DUTY CHARGEABLE ON CLOSING STOCK AS PER PROVISIONS U/S. 145A OF THE ACT. 3. AS CLOSING STOCK COMPRISES ONLY UNCLEARED STOC KS, THE RATIO OF THE APEX COURT IN THE CASE OF CIT VS. BRITISH PAINTS IN DIA LTD. (188 ITR 44) IS APPLICABLE IN THE PRESENT CASE FOR INCLUDING THE VALUE OF EXCISE DUTY ON SUCH CLOSING STOCK AS PER PROVISIONS U/S. 1 45A. THE ORDER PASSED BY THE CIT(A) IS THEREFORE NOT CORRECT IN HO LDING THAT EXCISE DUTY IS NOT TO BE LEVIED ON CLOSING STOCK. ITA NO.556 & 1351./HYD/10 M/S. RADIANT CORPORATION P. LTD., HYDERABAD. 2 2. GROUNDS OF APPEAL OF THE REVENUE IN ITA NO.135 1/HYD/2010 FOR ASSESSMENT YEAR 2007-08 ARE AS UNDER- 1. THE ORDER OF THE CIT(A) IS ERRONEOUS ON FACTS A ND LAW. 2. THE CIT(A) ERRED IN DELETING THE ADDITION ON ACC OUNT OF EXCISE DUTY ON FINISHED GOODS OF CLOSING STOCK. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS RE LIED ON THE ORDERS OF THE ASSESSING OFFICER. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE INVOLVED IN THE GROUNDS OF THE REVENUE IN THE SE APPEALS IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HYD ERABAD BENCH OF THE TRIBUNAL IN DCIT V/S. REGENCY CERAMICS LTD. IN ITA NO.1639/H YD/2008 FOR ASSESSMENT YEAR 2004-05 DATED 29.5.2009. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. THE ONLY IDENTICAL ISSUE IN THESE TWO APPEALS PREFERRED BY THE REVENUE IS REGAR DING THE ADDITIONS ON ACCOUNT OF EXCISE DUTY ON FINISHED GOODS OF THE CLOSING STO CK. WE FIND THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HONBLE MADHYA PRADESH HIGH COURT IN THE CASE OF ACIT V/S. D&H SE CHERON ELECTRODES (P) LTD. (2008) 173 TAXMAN 188 (MP) AND ALSO THE DECISION OF THE HYDERABAD BENCH OF THE TRIBUNAL IN THE CASE OF DCIT VS. REGENCY CERAMI CS LTD. (SUPRA). THE CIT(A) HAS FOLLOWED THE DECISION OF THE HONBLE MADHYA PRA DESH HIGH COURT IN THE CASE OF ACIT V/S. D&H SECHERON ELECTRODES (P) LTD. (SUPRA) AND THE HYDERABAD BENCH OF THE TRIBUNAL IN THE CASE OF DCIT V/S. REGENCY CERAM ICS LTD. (SUPRA) AND HAS DIRECTED THE ASSESSING OFFICER TO DELETE THE ADDITI ON ON ACCOUNT OF EXCISE DUTY IN RESPECT OF CLOSING STOCK OF FINISHED GOODS. THERE B EING NO MISTAKE IN THE ORDER OF THE CIT(A) IN FOLLOWING THE DECISION OF THE HONBLE MADHYA PRADESH HIGH COURT IN THE CASE OF ACIT V/S. D&H SECHERON ELECTRODES (P) LTD. (SUPRA), WE HOLD THAT NO INTERFERENCE WITH THE ORDER OF THE CIT(A) IS CALLED FOR. ACCORDINGLY THE ORDER OF THE ITA NO.556 & 1351./HYD/10 M/S. RADIANT CORPORATION P. LTD., HYDERABAD. 3 CIT(A) IS CONFIRMED AND THE GROUNDS OF THE REVENUE IN BOTH THESE APPEALS ARE REJECTED. 5. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 8.4.2011 SD/- SD/- ( AKBER BASHA ) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 8.4.2011 COPY FORWARDED TO: 1. M/S. RADIANT CORPORATION P. LTD., CIRCLE B - 1, INDUSTRIAL ESTATE, SANATH NAGAR, HYDERABAD. 2. DY. /ASST COMMISSIONER OF INCOME TAX, CIRCLE 3(2), HYDERABAD 3. COMMISSIONER OF INCOME-TAX(APPEALS) IV, HYDERABA D 4. COMMISSIONER OF INCOME TAX III, HY DERABAD 5. THE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S