M/s Kodandaram Roller Flour Mills P.Ltd, Calicut V. ACIT, Calicut

ITA 23/COCH/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4477 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2011
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 14-07-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 14-01-2010
• Court: TRIBUNAL
• Keywords: Cost of acquisition

Judgement Text

ITA NO. 23/COCH//2010 (FOR A.Y. 2006-07) 1 IN THE INCOME TAX APPELLAT E TRIBUNAL COCHIN BEN CH, COCHIN BEFORE S/SHRI N.VIJAYAKUMARAN, JM AND SANJAY AR ORA, AM I.T.A. NO.23 /COCH/2010 ASSESSMENT YEAR:2006-07 M/S. KODANDARAM ROLLER FLOUR MILLS P. LTD., 6/1182, CHEROOTTY ROAD, CALICUT [PAN: AACCK 1272K] VS. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-2, CALICUT. (ASSESSEE -APPELLANT) (REVENUE -RESPONDEN T) ASSESSEE BY SHRI A.S.NARAYANAMOORTHY, CA-AR REVENUE BY MS. S. VIJAYAPRABHA, DR O R D E R PER SANJAY ARORA, AM: THIS IS AN APPEAL BY THE ASSESSEE ARISING OUT OF T HE ORDER BY THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, KOCHI (CIT(A) FOR SHORT) DATED 28.10.2009, AND THE ASSESSMENT YEAR UNDER REFERENCE IS 2006-07. 2. THE APPEAL RAISES A SINGLE ISSUE, I.E., THE MAIN TAINABILITY OF THE ADDITION MADE ON ACCOUNT OF EXCESS WASTAGE IN PRODUCTION AND, CONSEQ UENTLY, A LOWER PRODUCTION BY THE ASSESSEE, A PRIVATE LIMITED COMPANY RUNNING A ROLLE R FLOUR MILL. 2.1 AS AGAINST A TOTAL PRODUCTION OF FINISHED GOODS AT 22764.199 METRIC TONNES (MT), I.E., OF ALL THE WHEAT PRODUCTS BEING PRODUCED (AS ATTA, MAIDA, SUJI, BRAN, FLAKES, ETC.), WHICH WORKED TO 97.20% OF THE TOTAL QUANTITY OF WHE AT CONSUMED (23420.799 MT), THE ASSESSING OFFICER (AO) ESTIMATED THE PRODUCTION AT 23056.233 MT, I.E., BY RESTRICTING THE CLAIM FOR WASTAGE TO 1.57% OF THE INPUT WEIGHT (234 20.799 364.566). VALUING THE SAME AT THE AVERAGE PURCHASE COST OF ` 9060/- PER MT, HE WORKED OUT THE VALUE OF THE EXCESS PRODUCTION OF 291.216 MT AT ` 26.38 LAKHS, AND WHICH STOOD RESTRICTED TO ` 25.00 LAKHS TO ITA NO. 23/COCH//2010 (FOR A.Y. 2006-07) 2 ACCOUNT FOR ANY PERCENTAGE FLUCTUATIONS. IN APPEAL, THE LD. CIT(A) FOUND THAT THE AO HAD, IN THE ABSENCE OF RELIABLE RECORDS BEING MAINTAINED BY THE ASSESSEE IN RESPECT OF QUANTITATIVE DETAILS FOR THE DIFFERENT PRODUCTION P ROCESSES, ADOPTED THE WASTAGE FOUND BY THE REVENUE IN THE ASSESSEES OWN CASE FOR THE IMM EDIATELY PRECEDING YEARS, I.E., A.YS. 2004-05 AND 2005-06. FURTHER, THE MATTER HAD ALSO FOUND APPROVAL BY THE TRIBUNAL IN THE CASE OF YENKEY ROLLER FLOUR MILLS (IN I.T.A. NOS. I.T.A. NOS. 672 TO 674 & 685 TO 686/COCH/2006 DATED 13.3.2009 FOR AY 1998-99 TO 200 2-03). HE, ACCORDINGLY, CONFIRMED THE ADDITION TOWARDS THE EXCESS CLAIM OF WASTAGE. AGGRIEVED, THE ASSESSEE IS IN APPEAL. 3. BEFORE US, AT THE VERY OUTSET, IT WAS CONCED ED BY THE LD. AR, THE ASSESSEES COUNSEL, THAT THE ISSUE STANDS SQUARELY COVERED AGAINST THE ASSESSEE VIDE THE ORDERS BY THE TRIBUNAL IN THE MATTER, INCLUDING IN ITS OWN CASE, PLACING I TS LATEST ORDER IN A GROUP CASE ( YENKEY ROLLER FLOUR MILLS , IN I.T.A. NO. 900/COCH/2008 DATED 22.6.2010 FOR A .Y. 2005-06) ON RECORD. 4. WE HAVE HEARD THE PARTIES, AND PERUSED THE MATER IAL ON RECORD. WE FIND THAT THE TRIBUNAL (COCHIN BENCH) PER ITS ORDER DATED 22.6.20 10 (SUPRA), AFTER A DETAILED DISCUSSION COVERING ALL THE ASPECTS OF THE MATTER, AS WELL AS THE ARGUMENTS RAISED BY THE ASSESSEE TO DISTINGUISH ITS CASE FOR THE SAID YEAR VIS--VIS TH AT FOR THE EARLIER YEARS, DECIDED AGAINST IT, AND CONFIRMED ITS EARLIER VIEW, I.E., OF THE ASSESS EES CLAIM FOR WASTAGE BEING HIGHER AND NOT SUPPORTED BY RELIABLE MATERIALS, WHILE FINDING THE REVENUES ESTIMATE THEREOF TO BE REASONABLE AND WELL SUPPORTED. IN FACT, THE ASSESS EE, RATHER THAN CONTESTING THE SAID FINDINGS, OR DISTINGUISHING ITS CASE, HAS CONCEDED TO THE APPLICABILITY OF THE SAME IN THE FACTS AND CIRCUMSTANCES OF ITS CASE. ACCORDINGLY, WE SEE NO REASON NOT TO CONFIRM THE IMPUGNED ORDER, WHICH IS ITSELF PASSED FOLLOWING TH E ORDERS BY THE TRIBUNAL AND, FURTHER, WHICH REPRESENTS ITS CONSISTENT VIEW IN THE MATTER. WE DECIDE ACCORDINGLY. ITA NO. 23/COCH//2010 (FOR A.Y. 2006-07) 3 5. IN THE RESULT, THE ASSESSEES APPEAL IS DISMISSE D. SD/- SD/- (N.VIJAYAKUMARAN) (SANJAY ARORA) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: ERNAKULAM DATED: 29TH JULY, 2011 GJ COPY TO: 1. M/S. KODANDARAM ROLLER FLOUR MILLS P. LTD., 6/11 82, CHEROOTTY ROAD, CALICUT 2. THE ASST. COMMISSIONER OF INCOME TAX, CENTRAL CI RCLE-2, CALICUT. 3. THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, KOCH I. 4. THE COMMISSIONER OF INCOME-TAX, CENTRAL, KOCHI. 5. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 6. GUARD FILE .