M/s. Singh Cycle & Motor Co., Pune V. Deputy Commissioner of Income-tax,

ITA 2173/PUN/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1710 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 11-03-2019
• Assessment Year: 2009-2010
• Appeal Filed On: 19-09-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SANJEEV GHEI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO . 2173 /PUN/201 6 / ASSESSMENT YEAR : 20 0 9 - 10 M/S. SINGH CYCLE AND MOTOR CO., 285, TARA BAUG, BUND GARDEN ROAD, PUNE 411001 PAN : AAQFS8857F ....... / APPELLANT / V/S. DY. COMMISSIONER OF INCOME TAX , CIRCLE 2, PUNE / RESPONDENT ASSESSEE BY : SHRI BHARAT SHAH REVENUE BY : SHRI SAN JEEV GHEI / DATE OF HEARING : 13 - 03 - 2019 / DATE OF PRONOUNCEMENT : 18 - 0 3 - 2019 / ORDER PER VIKAS AWASTHY, JM : TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMI SSIONER OF INCOME TAX (APPEALS) - 5, PUNE DATED 07 - 06 - 2016 FOR THE ASSESSMENT YEAR 200 9 - 10. 2 ITA NO .2173/PUN/2016, A.Y. 2009 - 10 2. SHRI BHARAT SHAH APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS A PARTNERSHIP FIRM AND IS A DEALER OF HERO HONDA MOT OR CYCLE. DURING THE PERIOD RELEVANT TO THE ASSESSMENT YEAR UNDER APPEAL THE ASSESSEE HAS CARRIED PHYSICAL STOCK VERIFICATION WHEREIN IT WAS FOUN D THAT 70 VEHICLES WERE STOLEN FROM THE GODOWN. THIS FACT CAME TO THE KNOWLEDGE OF ASSESSEE ON 31 - 03 - 2009. THE LOSS OF RS.24.14 LAKHS WAS DEBITED TO THE P & L ACCOUNT. THE ASSESSING OFFICER DISALLOWED ASSESSEES CLAIM OF DIFFERENCE IN STOCK DUE TO LOSS/THEFT. 2.1 AGGRIEVED AGAINST THE ASSESSMENT ORDER DATED 23 - 11 - 2011, THE ASSESSEE FILED APPEAL BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS). THE FIRST APPELLATE AUTHORITY REJECTED THE ASSESSEES CLAIM OF DISALLOWANCE OF RS.13,14,000/ - ON ACCOUNT OF ACTUAL L OSS OF STOCK AND CONFIRMED THE ADDITION. NOW, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST THE FINDINGS OF COMMISSIONER OF INCOME TAX (APPEALS) ON THE AFORESAID ISSUE. 2.2 THE LD. AR SUBMITTED THAT THE AUTHORITIES BELOW HAVE DISBELIEVED THAT T HE DIFFERENCE IN STOCK OF VEHICLES IS ON ACCOUNT OF THEFT. IN THE EARLIER ASSESSMENT YEAR I.E. ASSESSMENT YEAR 2006 - 07 THE ASSESSEE HA D LOST 44 VEHICLES AND THE SAME WAS ALLOWED BY THE ASSESSING OFFICER. 3. PER CONTRA, SHRI SANJEEV GHEI REPRESENTING TH E DEPARTMENT VEHEMENTLY DEFENDED THE IMPUGNED ORDER. THE LD. DR SUBMITTED THAT THE ASSESSEE IS HABITUAL IN CLAIMING SUCH LOSS ON ACCOUNT OF THEFT OF STOCK . THE ASSESSEE HAS NOT LODGED ANY FIR ON ACCOUNT OF THEFT OF MOTORCYCLE S AND NO CLAIM HAS BEEN MADE BY THE ASSESSEE FROM I NSURANCE FOR SUCH LOSS. THEREFORE, THE ASSESSEES CLAIM OF LOSS OF STOCK IS NOT BONAFIDE. 3 ITA NO .2173/PUN/2016, A.Y. 2009 - 10 4. W E HAVE HEARD THE SUBMISSIONS MADE BY REPRESENTATIVES OF RIVAL SIDES AND HAVE PERUSED THE ORDERS OF AUTHORITIES BELOW . THE SOLITARY GROUN D RAISED BY THE ASSESSEE IN APPEAL IS AGAINST DISALLOWANCE OF RS.24.14 LAKHS ON ACCOUNT OF LOSS OF STOCK OF MOTORCYCLES. THE CASE OF ASSESSEE IS THAT THE ASSESSEE CAME TO KNOW ABOUT THE LOSS OF STOCK OF VEHICLE S (MOTORCYCLES) ON PHYSICAL VERIFICATION OF S TOCK AS ON 31 - 03 - 2009. IT IS AN UNDISPUTED FACT THAT THE ASSESSEE HAS NOT LODGED ANY FIR AGAINST THE THEFT OF SUCH LARGE NUMBER OF MOTORCYCLES AND NO CLAIM HAS BEEN MADE FOR THE LOSS OF UNREGISTERED NEW VEHICLES FROM THE INSURANCE COMPANY. THEFT OF UNREG ISTERED VEHICLES IS A GRAVE ISSUE WHICH OUGHT TO HAVE BEEN BROUGHT TO NOTICE OF POLICE. IN THE ABSENCE OF THESE VITAL DOCUMENTARY EVIDENCES , THE EXPLANATION PUT FORWARD BY THE ASSESSEE EXPLAINING DIFFERENCE IN STOCK IS NOT SUSTAINABLE. THE ASSESSEE HAS F AILED TO SUBSTANTIATE THE THEFT OF 70 MOTORCYCLES DURING THE PERIOD RELEVANT TO THE ASSESSMENT YEAR UNDER APPEAL . IN THE ABSENCE OF ANY COGENT EVIDENCE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS). ACCORDINGLY, THE S AME IS UPHELD AND THE APPEAL OF ASSESSEE IS DISMISSED BEING DEVOID OF ANY MERIT. 5. IN THE RESULT, THE APPEAL OF ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON MONDAY, THE 18 TH DAY OF MARCH, 2019. SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 18 TH MARCH, 2019 RK 4 ITA NO .2173/PUN/2016, A.Y. 2009 - 10 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 5, PUNE 4. THE PR. COMMISSIONER OF INCOME TAX - 4, PUNE 5. , , , / DR, ITAT, A BENCH, PUNE. 6. / GUARD FILE. / / // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE