ANIL INDUSTRIES, Alwar V. ITO, Alwar

ITA 195/JPR/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99565 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 9 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 28-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJENDER SINGH JCIT DR DHK

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 195/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 M/S. ANIL INDUSTRIES F-68, RIICO INDUSTRIAL AREA KHAIRTHAL (ALWAR) CUKE VS. THE ITO WARD- 1(1) ALWAR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AACFA 1524 B VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL, CA JKTLO DH VKSJ LS@ REVENUE BY :SHRI RAJENDER SINGH, JCIT-. DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 15/12/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 17 /12/2015 VKNS'K@ ORDER PER R.P. TOLANI, JM THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A), ALWAR; DATED 04-12-2012 FOR THE ASSESSMENT YEAR 200 8-09 WHEREIN RAISED FOLLOWING GROUND IS RAISED: THE AO HAS ERRED IN LAW AS WELL AS ON THE FACTS A ND CIRCUMSTANCES OF THE CASE IN MAKING A TRADING ADDIT ION OF RS. 5.00 LACS AND LD. CIT(A) ERRED IN SUSTAINING A SUM OF RS. 3.47 LACS OUT OF THE SAME. 2.1 DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE CONTENDS BOOKS OF ACCOUNTS WERE REJECTED U/S 145(3) MERELY BY HOLDING THAT YIELD WAS COMPARATIVELY LOW AND ADDITION IN QU ESTION WAS MADE. ITA NO. 195/JP/2013 M/S. ANIL INDUSTRIES VS. ITO, WARD- 1(1), ALWAR . 2 2.2 THE ASSESSEE PREFERRED FIRST APPEAL WHERE THE L D. CIT(A) DID NOT AGREE WITH AO ON THE ISSUE OF YIELD. SIMILARLY, THE FALL IN YIELD BY 0.25% CANNOT BE SAID TO BE A CAUSE FOR REJECTING THE BOOK RESULTS WHEN THE OVERALL YIELD AT 29.25% CANNOT BE SAID TO BE VERY L OW AS COMPARED TO THE YIELD SHOWN BY THE ASSESSEE AT 29.50% IN THE PRECED ING YEAR AND THE YIELD OF 29.48% FOR THE YEAR IN THE CASE OF M/S. AGARWAL UDYOG. THE LD. CIT(A) AGREED WITH THE SUBMISSION OF THE A.R. THAT MINOR VARIATION IN THE YIELD OF AGRICULTURAL GOODS COULD RESULT FROM THE D IFFERENT IN QUALITY IN THE RAW MATERIAL AVAILABLE ACROSS THE YEARS, THE TECHNO LOGY OF MACHINE AND SKILLS OF LABOUR ACROSS DIFFERENT ASSESSEE'S. DESPI TE THIS CLEAR FINDINGS IN FAVOUR OF THE ASSESSEE, THE LD. CIT(A) RETAINED PAR T DISALLOWANCE BY FOLLOWING OBSERVATIONS. IN VIEW OF ABOVE, I AM OF THE CONSIDERED OPINION THAT BOOK RESULTS HAVE BEEN CORRECTLY REJECTED U/S 145(3 ) OF THE ACT. HOWEVER, THE ESTIMATION OF TRADING ADDITION AT RS. 5 LAC APPEARS TO BE ON HIGHER SIDE IN VIEW OF ABOVE DISCU SSION AND THE SAME IS FAIRLY RESTRICTED TO RS. 3,47,000/-. TH E BALANCE ADDITION OF RS. 1,53,000/- IS DELETED. THE GROUND O F APPEAL IS PARTLY ALLOWED. 2.3 LD. COUNSEL FOR THE ASSESSEE CONTENDS THAT THE FINDINGS OF THE LD. CIT(A) ARE SELF CONTRADICTORY. THE ISSUE OF STOCK W AS NOT QUESTIONED BY THE AO AND ADDITION WAS MADE ONLY FOR THE ISSUE OF MINOR LOWER YIELD WHICH HAS BEEN FOUND TO BE SATISFACTORY BY THE LD. CIT(A), IN THIS EVENTUALITY THERE WAS NO JUSTIFICATION IN RETAINING THE PART DISALLOWANCE. ITA NO. 195/JP/2013 M/S. ANIL INDUSTRIES VS. ITO, WARD- 1(1), ALWAR . 3 2.4 THE LD. DR IS HEARD. 2.5 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD AND FIND MERIT IN THE CONTENTIO NS OF THE LD. COUNSEL. THE ISSUE OF MINOR DEFICIENCY OF YIELD STANDS OVERR ULED BY SATISFACTORY FINDINGS OF THE LD. CIT(A). HAVING HELD SO, THERE W AS NO JUSTIFICATION IN REJECTING THE BOOKS OF ACCOUNT AND RAKING UP THE IS SUE OF STOCK VALUATION TO SUSTAIN PART ADDITION. IN VIEW THEREOF, I SEE NO JUSTIFICATION IN SUSTAINING PART ADDITION BY THE LD. CIT(A) WHICH IS DELETED. 3.0 IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 /12/ 2015 SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 17 /12/ 2015 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. ANIL INDUSTRIES, ALWAR 2. IZR;FKHZ@ THE RESPONDENT- THE ITO WARD- 1(1), ALWAR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 195/JP/2013) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR