Prime Ceramics Pvt.Ltd., Baroda V. The ACIT.,Circle-4, Baroda

ITA 2033/AHD/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94536 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2005-2006
• Appeal Filed On: 30-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N SOPARKAR
• Keywords: Depreciation
• Section: 143(3); 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SHR I S. S. GODARA , JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER PRIME CERAMICS PVT. LTD, AT & PO: GAVASAD, PADRA JAMBUSAR ROAD, DISTRICT: VADODARA - 391440 (APPELLANT) VS ACIT, CIRCLE - 4, BARODA (RESPONDENT) REVENUE BY : S H RI RAJ DEEP SINGH , SR. D . R. ASSESSEE BY: S H RI S.N. SOPARKAR , A.R. DATE OF HEARING : 08 - 10 - 2 015 DATE OF PRONOUNCEMENT : 14 - 10 - 2 015 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THIS ASSES SEE S APPEAL FOR A.Y. 2005 - 06 , AR ISES FROM ORDER OF THE CIT(A) - III, BARODA DATED 28 - 06 - 2013 IN APPEAL NO. CAB/III - I T A NO . 2033 / A HD/20 13 A SSESSMENT YEAR 200 5 - 06 I.T.A NO. 2033 /AHD/20 13 A.Y. 2005 - 06 PAGE NO PRIME CERAMICS PVT. LTD VS. ACIT 2 292/12 - 13 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2 . THE ASSESSEE S SOLE SUBSTANTIVE GROUND CH ALLENGES ADDITION OF UNDISCLOSED INCOME OUT OF UNACCOUNTED SALES OF MANUFACTURER GLASS FRIT AMOUNTING TO RS. 1,66,37,680/ - @ 25% OF THE GROSS SUM OF RS. 6,65,50,720/ - . THE ASSESSEE COMPANY MANUFACTURES GLASS FRIT. THE ASSESSING OFFICER FR AMED A REGULAR A SSESSMENT IN IT S CASE ON 03 - 12 - 2007 ASSESSING TOTAL INCOME OF RS. 21,48,400/ - AS AGAINST THAT RETURNED OF RS. 13,63,470/ - . THE CIT(A) UPHELD THIS ACTION IN ORDER DATED 11 - 06 - 2008. THEREAFTER , THE ASSESSING OFFICER REOPENED THE ABOVE STATED ASSESSMENT BY ISSUING SECTION 148 NOTICE DATED 15 - 09 - 2009. H E FRAMED REASSESSMENT ON 30 - 08 - 2010 MAKING DEPRECIATION ADDITION OF RS. 3,08,970/ - . 3. A PERUSAL OF THE CASE FILE REVEALS THAT THE CENTRAL EXCISE AUTHORITIES CONDUCTED SEARCH OPERATION S ON FRIT MANUFACTURES IN DIFFERENT PART OF GUJ ARAT S TATE ON 17 - 01 - 2008. THE SAID AUTHORITIES ALSO INTIMATED THE INCOME TAX DEPARTMENT ABOUT THE ABOVE STATED UNACCOUNTED SALES. THIS MADE THE ASSESSING OFFICER TO AGAIN ISSUE A SECTION 148 NOTICE DATED 15 - 03 - 2012. HE TOOK UP R EASSESSMENT AND MADE THE IMPUGNED ADDITION OF UNDISCLOSED INCOME OUT OF UNACCOUNTED SALES OF MANUFACTURED FRIT WORKED OUT AT RS. 1,66,37,680/ - @ 25% OF RS. 6,65,50,720/ - AS DETERMINED BY THE CENTRAL EXCISE AUTHORITIES. I.T.A NO. 2033 /AHD/20 13 A.Y. 2005 - 06 PAGE NO PRIME CERAMICS PVT. LTD VS. ACIT 3 4. THE ASSESSE PREFERRED APPEAL. THE CIT(A) RELIES ON HIS ORDER DATED 07 - 11 - 2010 PERTAINING TO ASSESSEE S OWN CASE IN AY2009 - 10 CONFIRMING AN IDENTICAL ADDITION ON THE BASIS OF UNACCOUNTED SALE DETERMINED BY THE EXCISE AUTHORITIES. HE HAS ACCORDINGLY PASSED A SIMILAR ORDER UNDER CHALLEN GE BEFORE US. 5. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH CASE FILE. RELEVANT FACTS STAND NARRATED IN THE PRECEDING PARAGRAPHS. THE IMPUGNED ADDITION HAS BEEN MADE IN ASSES SEE S CASE ON THE BASIS OF SEARCH ACTION UNDERTAKEN BY THE CENTRAL EXCIS E AUTHORITIES (SUPRA). THE ASSESSEE FILES BEFORE US COPY OF ORDER DATED 13 - 05 - 2015 PASSED BY THE LD. CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, WEST ZONE, AHMEDABAD (CESTAT) ALLOWING ITS APPEAL AGAINST THE ABOVE STATED SEARCH ACTION. IT FURTHER PLACES ON RECORD A COPY OF THE TRIBUNAL S ORDER DATED 05 - 09 - 2013 IN ASSESSMENT Y E AR 2009 - 10 REMITTING THE CASE BACK TO THE CIT(A) FOR DECISION AFRESH AS PER THE FINAL OUTCOME OF THE ABOVE STATED CESTAT CASE. THE ASSESSEE ACCORDINGLY PLEADS TH A T THE LD. C O - ORDINATE BENCH DID NOT HAVE THE ADVANTAGE OF CESTAT S FINAL DECISION IN THE ABOVE STATED CIRCUMSTANCES. IT PRAYS FOR THE MATTER BEING BACK TO THE A SSESSING AUTHORITY IN THE LIGHT OF CESTAT ORDER HEREINABOVE. THE REVENUE FAILS TO REBUT THIS FACTUAL POSI TION . WE DEEM IT APPROPRIATE IN THESE PECULIAR CIRCUMSTANCES THAT THE LD. ASSESSING OFFICER SHALL RE - EXAMINE THE ISSUE AND PASS A FRESH ORDER TAKING INTO ACCOUNT THE ABOVE STATED CESTAT S DECISION IN ACCORDANCE WITH LAW. I.T.A NO. 2033 /AHD/20 13 A.Y. 2005 - 06 PAGE NO PRIME CERAMICS PVT. LTD VS. ACIT 4 5. THIS ASSESSEE S APPEAL IS AL LOWED FOR STATISTICAL PURPOSES . ORDER PR ONOUNCED IN THE OPEN C OURT ON 14 - 10 - 2015 SD/ - SD/ - ( MANISH BORAD ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 14 /10 /2015 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,