DCIT, New Delhi V. M/s Super Oil Seals India Ltd., New Delhi

ITA 1766/DEL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61699 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 1 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 16-05-2012
• Assessment Year: 2003-2004
• Appeal Filed On: 11-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S MOHANTY; SHUMANA SEN DRS
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G : NEW DELHI) SHRI U.B.S. BEDI, JUDICIAL MEMBER AND BEFORE SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.1766/DEL./2011 (ASSESSMENT YEAR : 2003-04) DCIT, CIRCLE 9 (1), VS. M/S. SUPER OIL SEALS IND IA LTD., NEW DELHI. F 130, MALCHA MARG, CHANAKYA PURI, NEW DELHI. (PAN : AAECS7022H) (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : MS. S. MOHANTY & MS. SHUMANA SEN, DRS ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : THIS APPEAL EMANATES FROM THE ORDER OF THE CIT (AP PEALS)-XII, NEW DELHI DATED 18.01.2011 FOR THE ASSESSMENT YEAR 2003-04. THE GR OUNDS OF APPEAL READ AS UNDER :- 1. ON THE FACTS AND CIR OF THE CASE THE LD. CIT (A ) ERRED IN LAW AND MERIT OF THE CASE BY DELETING THE ADDITION OF RS.85 ,21,657/- ON ACCOUNT OF OBSOLESCENCE OF STOCK. 2. THE APPELLANT CRAVES TO AMEND MODIFY, ALTER, ADD OR FOREGO ANY GROUND OF APPEAL AT ANY TIME BEFORE OR DURING THE H EARING OF THIS APPEAL. 2. THE ONLY ISSUE INVOLVED IN THE APPEAL BEFORE US IS AGAINST THE DELETION OF ADDITION OF RS.85,21,657/- ON ACCOUNT OF OBSOLESCENCE OF STOCK. ITA NO.1766/DEL./2011 2 3. LD. DR RELIED ON THE ORDER OF THE ASSESSING OFFI CER. NONE ATTENDED ON BEHALF OF THE ASSESSEE. 4. CIT (A) HAS DECIDED THE ISSUE BY HOLDING AS UNDE R :- 4.2 I HAVE GONE THROUGH THE SUBMISSION FILED BY TH E APPELLANT BEFORE THE ASSESSING OFFICER. THE APPELLANT IS FREE TO VALUE T HE CLOSING STOCK AT MARKET OR COST, WHICHEVER IS LESS. THUS, THE APPELLANT HAD TH E OPTION TO VALUE THE STOCKS AS PER THE MARKET RATE. THE ASSESSING OFFICER HAS NOT GIVEN ANY FINDING REGARDING THE VALUE OF CLOSING STOCK BUT HAS DENIED THE ENTIRE AM OUNT OF RS.85,21,657/- MERELY BY STATING THAT IT IS NOT A AN ALLOWABLE EXPENDITUR E. THE REDUCTION MADE BY THE APPELLANT IS AS PER LAW AND THEREFORE ALLOWABLE. TH E ASSESSING OFFICER IS DIRECTED TO GIVE THE APPELLANT RELIEF OF RS.85,21,657/- ON A CCOUNT OF OBSOLESCENCE OF STOCK. THUS, THIS ISSUE IS DECIDED IN FAVOUR OF THE APPELL ANT. 4.3 REGARDING THE SECOND EFFECTIVE GROUND THAT IS O F REOPENING THE CASE UNDER SECTION 148. SINCE THE ADDITION MADE BY THE ASSESSI NG OFFICER IS DELETED ON MERIT NO ADJUDICATION ON THE ISSUE OF REOPENING THE CASE U/S 148 IS MADE. 5. AFTER HEARING THE REVENUE, WE FIND THAT THERE IS NO MERIT IN THE APPEAL OF THE REVENUE. THE ASSESSEE IS FREE TO VALUE THE STOCK A S PER THE MARKET VALUE OF THE STOCK OR COST OF THE STOCK, WHICHEVER IS LESS. THE ASSESSEE HAS OPTION TO VALUE THE STOCKS AS PER THE MARKET RATE AND ASSESSEE HAS DONE SO. THEREFORE, WE FIND NO MERIT IN THE GROUND OF APPEAL TAKEN BY THE REVENUE AND THE SAME STANDS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN OPEN COURT ON THIS 18 TH DAY OF MAY, 2012. SD/- SD/- (U.B.S. BEDI) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 18 TH DAY OF MAY, 2012 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT (A)-XII, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.