R.Suneetha, Tiruppur V. ACIT, Tiruppur

ITA 1889/CHNY/2014

• Counselvise Citation: 188921714 RSA 2014
• Duration Of Justice: 11 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 09-06-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 01-07-2014
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN
• Assessee Lawyers: T BANUSEAKAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI . . . , . ! , ' # $ [ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ] ./ I.T.A.NO.1889/MDS/2014 / ASSESSMENT YEAR : 2006-07 SMT. R. SUNEETHA PROPX. TARUN CREATIONS 51, SHERIFF COLONY TIRUPUR VS. THE ASSTT. COMMISSIONER OF INCOME-TAX CIRCLE I TIRUPUR [PAN ANFPS 9689 H] ( %& / APPELLANT) ( '(%& /RESPONDENT) / APPELLANT BY : SHRI T. BANUSEAKAR, CA /RESPONDENT BY : SHRI P. RADHAKRISHNAN, JCIT / DATE OF HEARING : 09-06-2015 ! / DATE OF PRONOUNCEMENT : 19-06-2015 / O R D E R PER N.R.S.GANESAN, JUDICIAL MEMBER THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, COIMBA TORE, DATED 24.4.2014 AND PERTAINS TO ASSESSMENT YEAR 2006-07. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS VALUATIO N OF THE CLOSING STOCK. ITA NO.1889/14 :- 2 -: 3. SHRI T. BANUSEKAR, LD. REPRESENTATIVE FOR THE ASSE SSEE SUBMITTED THAT THE ASSESSEE HAS DISCLOSED 14,773 KG OF GREY FABRICS AND 11492 KG OF DYED FABRICS AS CLOSING STOCK. A CCORDING TO THE LD. REPRESENTATIVE, THE YARN PURCHASED BY THE ASSESSEE WAS SENT FOR KNITTING IMMEDIATELY. ACCORDING TO THE LD. COUNSEL , THE YARN WAS NOT DISCLOSED AS CLOSING STOCK SINCE THE SAME WAS CONVE RTED INTO FABRICS. THE ASSESSING OFFICER, HOWEVER, HAS NOT CONSIDERED THE STOCK OF FABRICS WHICH WAS DISCLOSED BY THE ASSESSEE. REFERRING TO THE ASSESSMENT ORDER, THE LD. REPRESENTATIVE SUBMITTED THAT IF THE STOCK OF FABRICS WAS TAKEN INTO CONSIDERATION, THERE IS NO NEED FOR MAKI NG ANY ADDITION TO THE CLOSING STOCK. 4. ON A QUERY FROM THE BENCH, THE DETAILS OF EXPENDITU RE INCURRED FOR CONVERTING THE YARN INTO FABRICS, THE LD. REPRESENTATIVE SUBMITTED THAT THE SAME ARE NOT AVAILABLE ON RECORD . HE FAIRLY CONCEDED THAT THE SAME WERE NOT PRODUCED BEFORE THE LOWER AUTHORITIES. HOWEVER, THE ASSESSEE IS WILLING TO PRODUCE THE DETAILS BEFORE THE ASSESSING OFFICER IN CASE AN OPPORTUNITY IS GIVEN TO HER. 5. ON THE CONTRARY, SHRI P. RADHAKRISHNAN, LD. DEPARTM ENTAL REPRESENTATIVE SUBMITTED THAT THE ASSESSEE CLAIMED BEFORE THE ASSESSING OFFICER THAT THE YARN WAS CONVERTED INTO FABRICS. ACCORDING TO THE LD. DR, FOR CONVERTING THE YARN INTO FABRICS ATLEAST 30-45 DAYS ITA NO.1889/14 :- 3 -: WOULD TAKE. THE ASSESSING OFFICER, AFTER TAKING IN TO CONSIDERATION THE PERIOD TAKEN FOR CONVERSION OF THE YARN INTO FINISH ED GOODS, CAME TO THE CONCLUSION THAT THE ASSESSEE WOULD NOT HAVE CO NVERTED THE YARN INTO FABRICS. REFERRING TO THE ORDER OF THE CIT(A) , THE LD. DR POINTED OUT THAT THE ASSESSEE COULD NOT FURNISH ANY DETAIL S EITHER BEFORE THE ASSESSING OFFICER OR BEFORE THE CIT(A). WHEN THE A SSESSING OFFICER WAS ASKED TO FILE A REMAND REPORT BY THE CIT(A), HE COULD NOT VERIFY THE DETAILS IN THE ABSENCE OF ANY MATERIAL. HOWEVE R, THE LD. DR POINTED OUT THAT IF THE ASSESSEE IS WILLING TO FUR NISH THE NECESSARY MATERIAL, HE MAY NOT HAVE ANY OBJECTION IN REMANDIN G THE MATTER TO THE ASSESSING OFFICER FOR RE-CONSIDERATION. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITHER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ASSESSEE CLAIMS THAT YARN PURCHASED WAS CONVERTED INTO FABRICS. HO WEVER, THE DETAILS OF EXPENDITURE INCURRED BY THE ASSESSEE FOR SUCH C ONVERSION IS NOT AVAILABLE ON RECORD. THE CIT(A) FOUND THAT THE A SSESSEE EXPRESSED HER INABILITY IN FURNISHED THE COMPLETE DETAILS BEF ORE THE ASSESSING OFFICER DURING THE REMAND PROCEEDINGS. NOW THE AS SESSEE CLAIMS THAT SHE IS WILLING TO PRODUCE NECESSARY DETAILS BEFORE THE ASSESSING OFFICER. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINI ON THAT GIVING ONE MORE OPPORTUNITY TO THE ASSESSEE WOULD DEFINITELY PROMOTE THE CAUSE OF JUSTICE AND MAY NOT PREJUDICE THE INTEREST OF TH E REVENUE IN ANY ITA NO.1889/14 :- 4 -: WAY. ACCORDINGLY, THE ORDERS OF THE LOWER AUTHO RITIES ARE SET ASIDE AND THE ENTIRE ISSUE OF VALUATION OF CLOSING STOCK IS REMANDED BACK TO THE FILE OF ASSESSING OFFICER. THE ASSESSING OFFIC ER SHALL RECONSIDER THE ISSUE AFRESH IN THE LIGHT OF THE MATERIAL THAT MAY BE FILED BY THE ASSESSEE WITH REGARD TO CONVERSION OF YARN INTO FAB RICS AND DECIDE THE SAME IN ACCORDANCE WITH LAW AFTER GIVING REASON ABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH OF JUNE, 2015, AT CHENNAI. SD/- SD/- ( . ! ) (A. MOHAN ALANKAMONY) ' / ACCOUNTANT MEMBER ( . . . ' ) (N.R.S. GANESAN) / JUDICIAL MEMBER #$ / CHENNAI %& / DATED: 19 TH JUNE, 2015 RD &' ()*) / COPY TO: 1 . / APPELLANT 4. + / CIT 2. / RESPONDENT 5. ),- . / DR 3. +/' / CIT(A) 6. -01 / GF