Shyam Stores, Kolkata V. ITO, Ward - 49(3), Kolkata, Kolkata

ITA 1630/KOL/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7922 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2012
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 28-11-2011
• Court: TRIBUNAL
• Department Lawyers: RANJIT SAHA
• Assessee Lawyers: RAJ KUMAR AGARWAL
• Section: 133A

Judgement Text

, C , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA () BEFORE , /AND ! ' ! ! ' ! ! ' ! ! ' ! , ) [BEFORE SHRI PRAMOD KUMAR, AM & SHRI MAHAVIR SINGH, JM] # # # # / I.T.A NO. 1630/KOL/2011 '$% &' '$% &' '$% &' '$% &'/ // / ASSESSMENT YEAR : 2007-08 SHYAM STORES VS. INCOME-TAX OFFICER, WARD-49(3 ), KOLKATA (PAN: AAVFS5482R) ()* /APPELLANT ) (+)*/ RESPONDENT ) FOR THE APPELLANT: SHRI RAJ KUMAR AGARWAL FOR THE RESPONDENT: SHRI RANJIT SAHA DATE OF HEARING: 01.08.2012 DATE OF PRONOUNCEMENT: 03.08.2012 , / ORDER PER MAHAVIR SINGH, JM ( ! ' ! ! ' ! ! ' ! ! ' !, , , , ) THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A)-XXXII, KOLKATA IN APPEAL NO. 167/CIT(A)-XXXII/09-10/49(3), KOLKATA DATED 30.06.2 011 . ASSESSMENT WAS FRAMED BY ITO, WARD-49(3), KOLKATA U/S.143(3) OF THE INCOME TAX AC T, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2007-08 VIDE HIS ORDER D ATED 24.12.2009. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AG AINST THE ORDER OF CIT(A) CONFIRMING THE ADDITION OF UNDISCLOSED PURCHASES. FOR THIS, ASSES SEE HAS RAISED FOLLOWING THREE GROUNDS: 1. FOR THAT LD. CIT(A) ERRED IN UPHOLDING THE ADDI TION OF RS.13,02,412/- ON GROUND OF ALLEGED UNDISCLOSED PURCHASE. 2. FOR THAT LD. CIT(A) OUGHT TO HAVE ACCEPTED APPEL LANTS PLEA THAT THE DETERMINATION OF EXCESS/SHORT SHOULD HAVE BEEN WITH REFERENCE TO A P ARTICULAR GROUP OF ITEMS, SUCH AS, CEREALS, VANASPATI ETC. 3. FOR THAT LD. CIT(A) OUGHT TO HAVE ACCEPTED APPEL LANTS PLEA THAT THE EXCESS STOCK IN CERTAIN ITEMS SHOULD HAVE BEEN NETTED OFF AGAINST S HORT STOCK FOUND IN OTHER ITEMS. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE I S A WHOLESALER BUSINESS IN GROCERY ITEMS. A SURVEY U/S. 133A OF THE ACT WAS CONDUCTED ON THE BU SINESS PREMISES OF THE ASSESSEE ON 13.09.2006, WHICH IS RELEVANT FOR AY 2007-08. DURI NG THE COURSE OF SURVEY, ACCORDING TO 2 ITA 1630/K/2011 SHYAM STORES A.Y. 07-08 REVENUE, CERTAIN EXCESS STOCK ITEMS WERE FOUND PHYS ICALLY WHILE COMPARING WITH THE STOCK AS PER THE BOOKS OF ACCOUNT. ACCORDING TO REVENUE, SU CH EXCESS STOCK WAS AT RS.13,02,412/-. BEFORE THE AO AND ALSO CIT(A) THE ASSESSEE FILED RE CONCILIATION BUT BOTH THE AUTHORITIES BELOW TREATED THE EXCESS STOCK AS UNDISCLOSED PURCHASE MA DE BY ASSESEE AND SHORT STOCK AS UNDISCLOSED SALES AND ADDED THE EXCESS AND SHORT ST OCK AT RS.13,02,412/- AND RS.6,99,188/- BEING UNDISCLOSED PURCHASE AND UNDISCLOSED SALES RE SPECTIVELY. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT(A). BEFORE HIM ALSO IT WAS PLEADE D THAT IF THE STOCK SHEETS PREPARED BY THE SURVEY PARTY IT WAS NOTICED THAT MANY ITEMS HAVE BE EN SHOWN IN KGS. AND THE WEIGHTS WERE MERELY ESTIMATED AND NO ACTUAL WEIGHMENT WAS MADE. ACCORDING TO ASSESSEE, MANY OF THE ITEMS WERE OF SIMILAR NATURE AND E.G., HE DEMONSTRA TED THAT THERE ARE MANY VARIETIES OF DAL WHICH LOOK ALIKE TO A LAYMAN. HE STATED THAT DIFFE RENT INVENTORY SHEETS WERE PURPORTEDLY PREPARED FOR DIFFERENT GODOWNS BUT SOME STOCK WAS R EPEATED IN TWO DIFFERENT SHEETS. ACCORDING TO HIM, THE VALUE OF SUCH REPEATED STOCK AMOUNTING TO RS.2,66,910/- AND FURTHER REPETITION OF STOCK ON SAME SHEET WAS ALSO VALUED AT RS.1,72,510/-. ACCORDING TO ASSESSEE, THE DETAILS OF REPETITION WAS BROUGHT TO THE NOTICE OF AO AS WELL AS BEFORE CIT(A). WHEN THIS WAS POINTED OUT TO LD. DR, HE FAIRLY STATED THAT THIS E XERCISE AT THIS STAGE IS NOT POSSIBLE AND TO VERIFY THE MATTER MAY GO BACK TO THE FILE OF AO. W HEN A QUERY WAS PUT TO LD. COUNSEL FOR THE ASSESSEE, HE FAIRLY AGREED THAT LET THE MATTER BE E XAMINED QUA THE ISSUE OF UNDISCLOSED PURCHASE OF RS.13,02,412/-, HE HAS NO OBJECTION IN SETTING A SIDE THE MATTER TO THE FILE OF AO. WE, AFTER HEARING BOTH THE PARTIES, ARE OF THE VIEW THAT LET THE AO BE EXAMINED THE UNDISCLOSED PURCHASE OF RS.13,02,.412/- IN THE LIGHT OF ARGUMENTS MADE B EFORE US BY THE ASSESSEE. THE AO WILL ALLOW OPPORTUNITY TO THE ASSESSEE FOR MAKING HIS SUBMISSI ONS AND ASSESSEE HAS TO ESTABLISH THAT THERE IS A REPETITION OF STOCK. ACCORDINGLY, WE SET ASID E THISISSUE TO THE FILE OF AO. APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED IN PART. 5. ORDER PRONOUNCED IN OPEN COURT ON 03.08.2012 SD/- SD/- , ! ! ! ! ' ! ' ! ' ! ' ! , (PRAMOD KUMAR) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ( - - - -) )) ) DATED: 3 RD AUGUST, 2012 ./ '$01 '2 JD.(SR.P.S.) 3 ITA 1630/K/2011 SHYAM STORES A.Y. 07-08 , 3 ''4 54&6- COPY OF THE ORDER FORWARDED TO: 1 . )* / APPELLANT SHYAM STORES, 26A, FEEDER ROAD, BELGHOR IA, KOLKATA-700 056. 2 +)* / RESPONDENT ITO, WARD-49(3), KOLKATA. 3 . ',$ ( )/ THE CIT(A), KOLKATA 4. ',$ / CIT, KOLKATA. 5 . ='> '$ / DR, KOLKATA BENCHES, KOLKATA +4 '/ TRUE COPY, ,$/ BY ORDER, ! 1 /ASSTT. REGISTRAR .