M/s.Hirekerur & Byadgi Taluk Mahila Supplementary &, Haveri V. Income Tax Officer, Haveri

ITA 1565/BANG/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4692 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 29-08-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: RAVISHANKAR DR P V PRADEE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH C, BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER ITA NO.1565 (BANG) 2016 (ASSESSMENT YEAR : 2010 11) M/S. HIREKERUR & BYADGI TALUK MAHILA SUPPLEMENTARY & PRODUCTION CENTRE, CHIKKERUR ROAD, HIREKERUR TK, HAVERI DIST. PAN. AAAAH4800J APPELLANT VS THE INCOME TAX OFFICER, WARD 1, HAVERI. RESPONDENT ASSESSEE BY : SHRI RAVISHANKAR, ADVOCATE REVENUE BY : DR. P. V. PRADEEP KUMAR, ADDL. CIT (DR) DATE OF HEARING : 22 05 2018 DATE OF PRONOUNCEMENT : 01 06 2018 O R D E R PER A. K. GARODIA, A.M.: THIS APPEAL IS FILED BY THE ASSESSEE WHICH IS DIREC TED AGAINST THE ORDER OF LD. CIT (A), DAVANGERE DATED 30.06.2016 FOR A. Y. 2 010 11. 2. LEARNED AR OF THE ASSESSEE SUBMITTED THAT GROUND S NO. 1, 2, 8 & 9 ARE GENERAL AND GROUNDS NO. 7 ABOUT INTEREST U/S 234 B IS CONSEQUENTIAL AND THERE ONLY GROUNDS NO. 3 TO 6 ARE TO BE DECIDED. HE ALSO SUBMITTED THAT IN GROUNDS NO. 3 TO 6, ONLY ONE ISSUE IS INVOLVED REGARDING DI SALLOWANCE OF RS. 904,239/- CLAIMED BY THE ASSESSEE AS OUTSTANDING EXPENSES. HE SUBMITTED THAT BILLS WERE RAISED AND PAYMENT WAS ALSO RECEIVED FROM THE CUSTO MER BUT GOODS COULD NOT BE DISPATCHED BECAUSE THE GOODS WERE INCOMPLETE AND HENCE, IT WAS REDUCED FROM SALES AND SUCH SALE WAS ACCOUNTED FOR IN NEXT YEAR. IN THIS REGARD, HE ALSO DREW OUR ATTENTION TO PAGE 5 OF THE PAPER BOOK WHIC H CONTAINS THE DETAIL OF GROSS SALES, NET SALES AND CLOSING STOCK. AT THIS J UNCTURE, THE BENCH POINTED OUT THAT THIS IS NOT THE CASE OF THE ASSESSEE THAT THE GOODS AGAINST THIS MUCH ITA NO. 1565/BANG/2016 2 SALE OF RS. 904,239/- WERE NOT PRODUCED AT ALL. THE CASE OF THE ASSESSEE IS THIS THAT THE GOODS WERE PRODUCED BUT WERE NOT READY FOR DISPATCH AND THE FINDING OF CIT (A) IN PARA 9 ON PAGE 13 OF HIS ORDER IS ALSO O N THIS LINE. THE BENCH POINTED OUT THAT UNDER THESE FACTS, REDUCTION OF THIS MUCH SALE FROM GROSS SALES OF THE PRESENT YEAR IS OKAY BUT THAN THE COST OF PRODUCTIO N OF SUCH GOODS SHOULD HAVE BEEN INCLUDED IN CLOSING STOCK BUT AS PER THE DETAI LS OF CLOSING STOCK ON THE SAME PAGE OF THE PAPER BOOK, THE SAME WAS NOT SO IN CLUDED. IN REPLY, IT WAS SUBMITTED BY THE LEARNED AR OF THE ASSESSEE THAT SI NCE, THE SALE WERE ULTIMATELY SHOWN IN NEXT FINANCIAL YEAR, ANY ADDITI ON IN THE PRESENT YEAR WILL RESULT INTO DOUBLE ADDITION. LEARNED DR OF THE REVE NUE SUPPORTED THE ORDER OF CIT (A). 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IN VIE W OF THE FACTS AS DISCUSSED IN ABOVE PARA, WE FEEL THAT THE ADDITION IN THE PRESEN T YEAR SHOULD BE MADE BY WAY OF ADDITION IN CLOSING STOCK. REGARDING THE ARG UMENT OF DOUBLE ADDITION IN THE PRESENT YEAR AND NEXT YEAR, WE FIND THAT THIS A PPREHENSION IS MISPLACED BECAUSE ONCE, THIS AMOUNT IS ADDED IN CLOSING STOCK OF THE PRESENT YEAR, THE OPENING STOCK OF NEXT YEAR WILL GO UP AND AS A RESU LT, THE INCOME OF NEXT YEAR WILL GO DOWN. WE ORDER ACCORDINGLY AND DIRECT THE A O THAT THIS ADDITION OF RS. 904,239/- IN THE PRESENT YEAR SHOULD BE MADE BY WAY OF ADDITION IN CLOSING STOCK AND CONSEQUENTIAL EFFECT BY WAY OF INCREASE I N VALUE OF OPENING STOCK SHOULD BE CONSIDERED AND ALLOWED IN NEXT YEAR TO AV OID DOUBLE ADDITION. THESE GROUNDS ARE REJECTED WITH THIS OBSERVATION THAT CON SEQUENTIAL EFFECT BY WAY OF INCREASE IN OPENING STOCK OF NEXT YEAR SHOULD BE AL LOWED TO AVOID DOUBLE ADDITION. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- (LALIET KUMAR) SD/- (A.K. GARODIA) JUDICAL MEMBER ACCOUNTANT MEMBER PLACE: BANGALORE D A T E D : 01.06.2018 /MS/ ITA NO. 1565/BANG/2016 3 COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.