ACIT, New Delhi V. M/s. Lakshmi Sugar Mills Co. Ltd., New Delhi

ITA 2007/DEL/2015

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5927 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 07-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: VASUNDHARA
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES D : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA.NO.2007/DEL./2015 ASSESSMENT YEAR 2010-2011 THE ACIT, CIRCLE-15(2), C.R. BUILDING, NEW DELHI. VS M/S. LAKSHMI SUGAR MILLS CO. LTD., ( FORMERLY KNOWN THE MAHALAKSHMI SUGAR MILLS CO. LTD., ) 704, SIDDHARTH BUILDING, 96, NEHRU PLACE, NEW DELHI 110 019. PAN AAACT0034G (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI AMIT JAIN, SR. D.R. FOR ASSESSEE : MS. VASUNDHARA, C.A. DATE OF HEARING : 05.06.2018 DATE OF PRONOUNCEMENT : 21.06.2018 ORDER PER BHAVNESH SAINI, J.M. THIS DEPARTMENTAL APPEAL HAS BEEN DIRECTED AGAINS T THE ORDER OF THE LD. CIT(A)-V, NEW DELHI, DATED 05. 01.2015, FOR THE A.Y. 2010-2011, CHALLENGING THE DELETION OF ADD ITION OF RS.66,60,305/-. 2 ITA.NO.2007/DEL./2015 M/S. LAKSHMI SUGAR MILLS CO. LTD., NEW DELHI. 2. THE A.O. MADE ADDITION ON ACCOUNT OF EXCISE DUT Y PAYABLE ON STOCKS UNDER SECTION 43B AS ON 31.03.201 2. THE A.O. HAD MADE THE ADDITION ON THE GROUND THAT EXCIS E DUTY WAS NOT INCLUDED IN THE VALUE OF CLOSING STOCK AS ON 31 .03.2012. THE ASSESSEE ARGUED THAT ADDITION OF EXCISE DUTY OF CLO SING STOCK WILL HAVE NO AFFECT IN P & L A/C OF THE COMPANY AS IT IS ALSO TO BE INCLUDED IN THE DEBIT SIDE OF THE P & L A/C IN OPEN ING STOCK, PURCHASE AND SALES OF THE P & L A/C. THE LD. CIT(A) IN A.Y. 2005-2006 HAS DELETED THE SIMILAR ADDITION AND THE TRIBUNAL DISMISSED THE APPEAL OF THE REVENUE. THE LD. CIT(A) FOLLOWING THE ORDER OF THE ITAT DELETED THE ADDITION AND ALLO WED THE APPEAL OF THE ASSESSEE. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE DO NOT FIND ANY MERIT IN THE DEPARTMENTAL APPEAL. THE A.O. IN THE ASSESSMENT ORDER WITHOUT BRINGING ANY FACTS ON RECO RD, MADE THE ADDITION AND NOTED THAT IN A.Y. 2005-2006, SIMI LAR ADDITION HAVE BEEN DELETED BY THE ITAT. HOWEVER, THE DEPARTM ENTAL APPEAL IS PENDING BEFORE HONBLE DELHI HIGH COURT. MERELY 3 ITA.NO.2007/DEL./2015 M/S. LAKSHMI SUGAR MILLS CO. LTD., NEW DELHI. BECAUSE THE DEPARTMENTAL APPEAL WAS PENDING BEFORE HONBLE DELHI HIGH COURT IS NO GROUND TO MAKE ADDITION AGAI NST THE ASSESSEE. THE AUTHORITIES BELOW ARE BOUND TO FOLLOW THE ORDER OF ITAT BEING THE SECOND APPELLATE AUTHORITY. IN TH E ABSENCE OF ANY MATERIAL ON RECORD AGAINST THE ASSESSEE, WE DO NOT FIND ANY JUSTIFICATION TO INTERFERE WITH THE ORDER OF THE LD . CIT(A) IN DELETING THE ADDITION. THE DEPARTMENTAL APPEAL STAN DS DISMISSED. 4. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (L.P. SAHU) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 21 ST JUNE, 2018 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT D BENCH 6. GUARD FILE // BY ORDER // ASST. REGISTRAR : ITAT DELHI BENCHES : DELHI.