Adarsh Steel Re-Rolling Mills, Dahod V. The Dy.CIT.,Cent.Circle-2, Surat

ITA 2340/AHD/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 0277 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2009
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 1997-1998
• Appeal Filed On: 03-08-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NITA SHAH
• Keywords: Reassessment proceedings

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, B-BENCH, AHMEDABAD. BEFORE: SHRI T K SHARMA, JUDICIAL MEMBER, AND SHRI D.C.AGRAWAL, ACCOUNTANT MEMBER. ITA NO.2340/AHD/2009 (ASSESSMENT YEAR 1997-1998) M/S. ADARSH STEEL RE- ROLLING MILLS, VILLAGE DELSAR, TALUKA: DAHOD. VERSUS DY. C.I.T., CENTRAL CIRCLE 2, BARODA AYAKAR BHAVAN, RACE COURSE, BARODA. (APPELLANT) (RESPONDENT) PAN: AAEFA 6062 G FOR THE APPELLANT: SHRI S.N. SOPARKAR, SR. ADVOCATE WITH URVASHI SODHAN FOR THE RESPONDENT SHRI SMT. NITA SHAH, SR. DR ORDER PER D C AGRAWAL (ACCOUNTANT MEMBER) : THIS IS AN APPEAL FILED BY THE ASSESSEE RAISING FOLLOWING GROUNDS. 1. THE LEARNED CIT(APPEALS) ERRED IN HOLDING THAT ADDITION MADE BY THE ASSESSING OFFICER WAS MADE ON THE BASIS OF INCRIMINATING DOCUMENTS. 2. THE LEARNED CIT(APPEALS) HAS ERRED IN HOLDING TH AT THE ASSESSING OFFICER WAS CORRECT IN ADOPTING THE GROSS PROFIT AT 10% ON THE BASIS OF THE DIRECTIONS OF THE HON'BLE ITAT. 3. THE LEARNED CIT(APPEALS) HAS ERRED IN DISREGARDI NG THE SUBMISSIONS MADE BY THE APPELLANT FIRM BEFORE HIM. 4. THE LEARNED CIT(APPEALS) HAS ERRED IN CONFIRMING THE ADDITION OF RS. 11,69,501/- ON ACCOUNT OF GROSS PROFIT IN TH E CASE OF THE APPELLANT FIRM. 2 ITA NO.824/AHD/2004 (ASSESSMENT YEAR 1996-1997) 2. THE MAIN ISSUE INVOLVED IN THE APPEAL IS THAT LD . COMMISSIONER OF INCOME TAX(APPEALS) HAS DISMISSED THE APPEAL OF THE ASSESSEE AGAINST THE ORDER OF THE ASSESSING OFFICER WHEREIN, HE HAS MADE AN ADDITION OF RS. 11,69,501/- IN GROSS PROFIT. 3. THE FACTS OF THE CASE ARE THAT ASSESSEE FILED RE TURN OF INCOME ON A LOSS OF RS. 500938/-. THE ASSESSMENT WAS MADE ON I NCOME OF RS. 1,09,18,145/-. THE LD. COMMISSIONER OF INCOME TAX( APPEALS) DELETED THE GP ADDITION, BUT, ON THE APPEAL PREFERRED BY TH E REVENUE, ITAT RESTORED THE MATTER TO THE FILE OF THE ASSESSING OF FICER. DURING THE REASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER REQ UIRED THE ASSESSEE SUBMITS SECONDARY RECORDS, VOUCHERS AND OTHER MATER IAL FOR VERIFICATION, LIKE COPIES OF ACCOUNTS OF SUPPLIERS, PURCHASES, CO PIES OF RETURN FILED WITH THE SALES TAX DEPARTMENT AND EXCISE DEPARTMENT AND THE COPIES OF THE RECORDS SUBMITTED TO THE BANKS AND FINANCIAL INSTIT UTIONS. THE ASSESSEE PRODUCED THESE DOCUMENTS AND ACCOUNTS. ACCORDINGLY , ASSESSING OFFICER ACCEPTED THE TURNOVER SHOWN BY THE ASSESSEE AND APP LIED G.P. RATE OF 10% AND MADE THE IMPUGNED ADDITION. LD. COMMISSIONER O F INCOME TAX(APPEALS) CONFIRMED THE SAME HOLDING THAT THE RE ASSESSMENT HAS BEEN FRAMED ON THE BASIS OF DIRECTION OF THE TRIBUNAL. 4. WE HAVE HEARD THE PARTIES. LEARNED AR OF THE AS SESSEE SUBMITTED THAT ADDITION HAS BEEN MADE ONLY ON THE BASIS OF CO MPARING ELECTRICITY CONSUMPTION, WHEREAS, LEARNED DR SUBMITTED THAT IN EARLIER YEAR, GP RATE WAS HIGHER AND THEREFORE APPLYING GP RATE OF 10% IS REASONABLE. 5. IN OUR CONSIDERED VIEW THERE IS NO CASE FOR INTE RFERENCE IN THE ORDER OF LD. COMMISSIONER OF INCOME TAX(APPEALS). THE AS SESSEE COULD NOT SHOW AS TO HOW THE GP RATE OF 10% IS ON HIGHER SIDE AS COMPARED TO 3 ITA NO.824/AHD/2004 (ASSESSMENT YEAR 1996-1997) EARLIER YEARS. NO CONTRARY FACTS AS NOTED BY THE T RIBUNAL IN THE FIRST INNING ARE POINTED OUT. ACCORDINGLY, APPLICATION O F GP RATE OF 10% AND CONSEQUENTIAL ADDITION IS FOUND TO BE IN ORDER AND THEREFORE IT IS CONFIRMED. 6. APPEAL FILED BY THE ASSESSEE IS DISMISSED. THIS ORDER IS PRONOUNCED IN OPEN COURT ON DATED 16 TH OCTOBER, 2009. SD/- SD/- (T.K. SHARMA) (D.C. AGRAWAL) JUDICIAL MEMBER ACCOUNTA NT MEMBER AHMEDABAD; DATED: 16/10/2009 ANKIT* COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) CONCERNED 4. THE CIT, 5. THE DR, AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER, ASSTT. REGISTRAR/ DEPUTY REGISTRAR ITAT, AHMEDABAD BENCHES, AHMEDABAD.