Rhishi Steel & Alloys Pvt Ltd, Jalna V. AD CIT R-1, Aurangabad

ITA 219/PUN/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2682 (ITAT-PUNE)
• Duration Of Justice: 4 year(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 18-11-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 03-02-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE , . . , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI R.K. PANDA, AM . / ITA NOS.219 TO 221/PN/2012 / ASSESSMENT YEARS : 2006 - 07 TO 2008 - 09 RHISHI STEEL & ALLOYS PRIVATE LIMITED, C - 55/7, ADDL, MIDC, JALNA - 431 203 PAN NO. AABCR3131P . /APPELLANT V/S ADDL.CIT, RANGE - 1, AURANGABAD . /RESPONDENT . / ITA NOS.414 TO 416/PN/2012 / ASSESSMENT YEARS : 2006 - 07 TO 2008 - 09 ACIT, CIRCLE - 1, AURANGABAD . /APPELLANT V/S RHISHI STEEL & ALLOYS PRIVATE LIMITED, C - 55/7, ADDL, MIDC, JALNA - 431 203 PAN NO. AABCR3131P . /RESPONDENT . / ITA NO S .2 16 & 2 18 /PN/2012 / ASSESSMENT YEAR S : 2006 - 07 TO 2008 - 09 JAILAXMI CASTING & ALLOYS PRIVATE LIMITED , GUT NO.75, PAITHAN ROAD, TQ. PAITHAN, DIST. AURANGABAD JALNA 431 203 PAN N O . AABCJ4567F . / APPELLANT V/S ADDL.CIT, RANGE - 1, AURANGABAD . / RESPONDENT 2 . / ITA NOS. 418 TO 420 /PN/2012 / ASSESSMENT YEARS : 2006 - 07 TO 2008 - 09 ACIT, CIRCLE - 1, AURANGABAD . /APPELLANT V/S JAILAXMI CASTING & ALLOYS PRIVATE LIMITED, GUT NO.75, PAITHAN ROAD, TQ. PAITHAN, DIST.AURANGABAD JALNA 431 203 PAN NO. AABCJ4567F . /RESPONDENT . / ITA NOS.224 TO 226/PN/2012 / ASSESSMENT YEARS : 2006 - 07 TO 2008 - 09 MAULI STEEL PRIVATE LIMITED, C - 15,ADDL. MIDC, AURANGABAD ROAD, JALNA 431 203 PAN NO. AABCM6718R . /APPELLANT V/S ADDL.CIT, RANGE - 1, AURANGABAD . /RESPONDENT . / ITA NOS.402 TO 404/PN/2012 . / ITA NOS.402 TO 404/PN/2012 / ASSESSMENT YEARS : 2006 - 07 TO 2008 - 09 ITO, WARD - 1(3), JALNA . /APPELLANT V/S MAULI STEEL PRIVATE LIMITED, C - 15,ADDL. MIDC, AURANGABAD ROAD, JALNA 431 203 PAN NO. AABCM6718R . /RESPONDENT . / ITA NOS.227 TO 230/PN/2012 / ASSESSMENT YEARS : 2005 - 06 TO 2008 - 09 GAJLAXMI STEEL PRIVATE LIMITED, F - 4, PHASE - II, ADDL, MIDC, AURANGABAD ROAD, JALNA - 431 203 PAN NO. AACCG0547R . /APPELLANT V/S ADDL.CIT, RANGE - 1, AURANGABAD . /RESPONDENT 3 . / ITA NOS.676 TO 679/PN/2012 / ASSESSMENT YEARS : 2005 - 06 TO 2008 - 09 ACIT, CIRCLE - 1, AURANGABAD . /APPELLANT V/S GAJLAXMI STEEL PRIVATE LIMITED, F - 4, PHASE - II, ADDL, MIDC, AURANGABAD ROAD, JALNA - 431 203 PAN NO. AACCG0547R . /RESPONDENT . / ITA NOS.243 & 244/PN/2012 / ASSESSMENT YEARS : 2006 - 07 & 2007 - 08 ADINATH CONCAST PRIVATE LIMITED, PLOT NO.E - 12, PHASE - II, ADDL. MIDC, AURANGABAD ROAD, JALNA 431 203 PAN NO. AAECA9498F . /APPELLANT V/S ADDL.CIT, RANGE - 1, AURANGABAD . /RESPONDENT . . / ITA NOS.636 & 637/PN/2012 / ASSESSMENT YEARS : 2006 - 07 & 2007 - 08 ITO, WARD - 1(3), JALNA . /APPELLANT V/S ADINATH CONCAST PRIVATE LIMITED, PLOT NO.E - 12, PHASE - II, ADDL. MIDC, AURANGABAD ROAD, JALNA 431 203 PAN NO. AAECA9498F . /RESPONDENT . / ITA NOS.258 TO 261/PN/2012 / ASSESSMENT YEARS : 2005 - 06 TO 2008 - 09 SAPTASHRUNGI ALLOYS PRIVATE LIMITED, C - 3/1, ADDL, MIDC, AURANGABAD ROAD, JALNA - 431 203 PAN NO. AAICS2970E . /APPELLANT V/S ADDL.CIT, RANGE - 1, AURANGABAD . /RESPONDENT 4 . / ITA NOS.680 TO 683/PN/2012 / ASSESSMENT YEARS : 2005 - 06 TO 2008 - 09 ACIT, CIRCLE - 1, AURANGABAD . /APPELLANT V/S SAPTASHRUNGI ALLOYS PRIVATE LIMITED, C - 3/1, ADDL, MIDC, AURANGABAD ROAD, JALNA - 431 203 PAN NO. AAICS2970E . /RESPONDENT . / ITA NOS.279 TO 28 1 /PN/2012 / ASSESSMENT YEARS : 2006 - 07 TO 200 8 - 09 META ROLLS & COMMODITIES PVT. LTD., GUT NO.48, PHASE - II, MIDC, JALNA - 431 203 PAN NO. AADCM3474C . /APPELLANT V/S ADDL.CIT, RANGE - 1, AURANGABAD . /RESPONDENT . / ITA NOS.408 TO 41 0 /PN/2012 / ASSESSMENT YEARS : 2006 - 07 TO 2008 - 09 ACIT, CIRCLE - 1, AURANGABAD . /APPELLANT V/S META ROLLS & COMMODITIES PVT. LTD., GUT NO.48, PHASE - II, MIDC, JALNA - 431 203 PAN NO. AADCM3474C . /RESPONDENT CORRIGENDUM PER R.K. PANDA, AM : THE PRESENT APPLICATION HAS BEEN MOVED BY THE RESPECTIVE ASSESSEES FOR CORRECTION OF CONSOLIDATED ORDER OF THE TRIBUNAL PASSED ON 05.08.2015. THE TRIBUNAL IN PARA 1 1 HAD HELD AS UNDER: - 5 1 1 . HOWEVER, THE AO IS DIRECTED TO INCLUDE ADDITIONAL INCOME IN THE HANDS OF ASSESSEE ON ACCOUNT OF CLANDESTINE REMOVAL OF GOODS WITHOUT PAYMENT OF EXCISE DUTY AS ADMITTED BY ASSESSEE BEFORE DGCEI, AURANGABAD . 2. THE APPLICANT HAS POINTED OUT THAT INADVERTENTLY THE DIRECTION FOR CALCULATION OF ADDITIONAL INCOME TO BE MADE ON THE VALUE OF SUPPRESSED PRODUCTION @ 4% OR ACTUAL GP RATE DECLARED BY THE ASSESSEE FOR THE YEAR, WHICHEVER WAS HIGHER, IS OMITTED. IT WAS FUR THER POINTED OUT BY THE APPLICANT VIDE THE SAID APPLICATION DATED 29 . 12 .201 5 THAT THE FINDING OF CIT(A) IN BUNCH OF APPEALS WAS THAT THE ADDITIONAL INCOME OF PROFIT ON SUPPRESSED PRODUCTION WAS TO BE COMPUTED @ 4% OR GP RATE, WHICHEVER IS HIGHER AND THE RE VENUE HAD CHALLENGED THE SAID STAND OF CIT(A) IN THE PRESENT APPEALS. IT WAS FURTHER CONTENDED THAT WHERE THE TRIBUNAL HAS REJECTED THE APPEAL OF THE DEPARTMENT, THE SAID FINDING OF THE CIT(A) SHOULD BE UPHELD. IT WAS FURTHER MENTIONED THAT SIMILAR DIREC TIONS HAVE BEEN GIVEN BY THE TRIBUNAL IN THE CASE OF KALIKA STEEL ALLOYS PVT. LTD. VS. ACIT IN ITA NOS.1258 TO 1264/PN/2012 & ACIT VS. KALIKA STEEL ALLOYS PVT. LTD. IN ITA NOS.1660 TO 1666/PN/2012, WHICH WAS PASSED ON 24.09.2015 BY A BENCH AND IN THE CAS E OF KALIKA STEEL JALNA PVT. WAS PASSED ON 24.09.2015 BY A BENCH AND IN THE CAS E OF KALIKA STEEL JALNA PVT. LTD. VS. ACIT IN ITA NOS.1265 TO 1269/PN/2012 AND ACIT VS. KALIKA STEEL JALNA PVT. LTD. IN ITA NOS.1655 TO 1659/PN/2012, WHICH WAS ALSO PASSED ON 24.09.2015, HENCE A REQUEST WAS MADE TO PASS A CORRIGENDUM ORDER AMENDING PARA 1 1 OF THE ORDER. 3. ON PERUSAL OF THE RECORD, WE FIND THAT BY AN ERROR, THE FINDINGS OF THE TRIBUNAL IN PARA 1 1 WITH SPECIAL REFERENCE TO FROM LINE 7 TO 10 , NEEDS CORRECTION TO THE EXTENT THAT THE ADDITIONAL INCOME TO BE ADDED IN THE HANDS OF THE ASSESSEE I S EQUIVALENT TO PROFITS ON SUPPRESSED PRODUCTION @ 4% OR ACTUAL GP RATE DECLARED BY THE ASSESSEE WHICHEVER WAS HIGHER. IN VIEW THEREOF, WE PASS THIS CORRIGENDUM ORDER AND THE PARA 1 1 I.E. FROM LINE 7 TO 10 WOULD NOW BE SUBSTITUTED BY FOLLOWING PARA. 11 . HOWEVER, THE AO IS DIRECTED TO INCLUDE ADDITIONAL INCOME IN THE HANDS OF ASSESSEE ON ACCOUNT OF CLANDESTINE REMOVAL OF GOODS WITHOUT 6 PAYMENT OF EXCISE DUTY AS ADMITTED BY ASSESSEE BEFORE DGCEI, AURANGABAD . ACCORDINGLY, WE DIRECT THE ASSESSING OFFICER TO VERIFY FROM THE RECORDS FOR THE RESPECTIVE YEARS AND INCLUDE IN THE HANDS OF ASSESSEE, THE ADDITIONAL INCOME @ 4% OR ACTUAL G.P. RATE DECLARED BY THE ASSESSEE FOR THAT YEAR WHICHEVER IS HIGHER ON VALUE OF SUCH ADMITTED CLANDESTINE REMOVAL OF MATERIAL WITHO UT PAYMENT OF EXCISE DUTY, BY THE ASSESSEE BEFORE THE EXCISE AUTHORITIES. THUS, THE ASSESSEE IS DIRECTED TO FILE THE REQUISITE DETAILS OF PROCEEDINGS BEFORE THE EXCISE AUTHORITIES, BEFORE THE ASSESSING OFFICER IN ORDER TO COMPUTE THE ADDITIONAL INCOME IN THE HANDS OF ASSESSEE IN THE RESPECTIVE YEARS. 4. CONSEQUENTLY, THE CORRIGENDUM ORDER IS PASSED IN THE CASE OF THE RESPECTIVE ASSESSEES. THE BALANCE ORDER SHALL REMAIN UNCHANGED. SD/ - SD/ - ( SUSHMA CHOWLA ) ( R.K. PANDA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / JUDICIAL MEMBER / ACCOUNTANT MEMBER PUNE ; DATED : 1 7 T H FEBRUARY , 201 6 . GCVSR / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) , / THE CIT(A) , AURANGABAD 4. , / THE CIT , AURANGABAD 5. , , / DR , ITAT, A PUNE 6. / GUARD FILE . / BY ORDER , / / TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE