ACIT, Coimbatore V. M/s. Elgi Electric & Industries Ltd., Coimbatore

ITA 2362/CHNY/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3982 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-07-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 17-08-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PAVUNA SUNDARI
• Assessee Lawyers: JAGADISAN CA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI ... , , # BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A. NO. 2362/MDS/2016 / ASSESSMENT YEAR : 2011-12 ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE -2, 63-A, RACE COURSE ROAD, COIMBATORE. VS. M/S. ELGI ELECTRIC & INDUSTRIES LTD., 737-D, GREEN FIELDS, ELGI TOWERS, PULIAKULAM ROAD, COIMBATORE 641 045. [PAN: AAACE 4787H] ( / APPELLANT) ( / RESPONDENT) % & / APPELLANT BY : SHRI PAVUNA SUNDARI, JCIT )*% & / RESPONDENT BY : SHRI JAGADISAN, CA & /DATE OF HEARING : 30.05.2017 & /DATE OF PRONOUNCEMENT : 26.07.2017 /O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THE REVENUE FILED THIS APPEAL AGAINST THE ORDER O F THE COMMISSIONER OF INCOME TAX (APPEALS)-1, COIMBATORE IN ITA NO. 148/1 4-15 DATED 16.05.2016. :-2-: I.T.A. N0. 2362/MDS/2016 2. IN THE ASSESSMENT MADE FOR ASSESSMENT YEAR 2011- 12, THE ASSESSING OFFICER FOUND THAT THE VALUE OF THE CLOSING STOCK AS PER BA LANCE SHEET AS ON 31.03.2011 WAS AT RS. 9,23,08,346/-. HOWEVER, THE CLOSING STOCK V ALUE SUBMITTED TO THE BANK AS ON THAT DAY WAS AT RS. 9,99,36,731/-. THUS, THERE WAS A DIFFERENCE OF RS. 76,28,385/-. AFTER GIVING THE ASSESSEE AN OPPORTUNITY OF BEING H EARD ETC., TAKING COGNIZANCE OF PUNJAB & HARYANA HIGH COURT DECISION IN B.T. STEELS LIMITED VS CIT 328 ITR 471 AND THE JURISDICTIONAL HIGH COURT DECISION IN COIMBATOR E SPINNING & WEAVING LIMITED VS CIT 95 ITR 375, THE ASSESSING OFFICER ADDED THE ABO VE DIFFERENCE OF RS. 76,28,385/- U/S. 69. AGGRIEVED AGAINST THAT ORDER, THE ASSESSE E FILED AN APPEAL BEFORE THE CIT(A). THE CIT(A) RELYING ON THIS ITAT ORDER IN I TA NO. 303/MDS/2014 DATED 30.04.2014 FOR ASSESSMENT YEAR 2009-10 ALLOWED THE APPEAL HOLDING THAT THE CLOSING STOCK OF THIS YEAR WOULD BE TREATED AS AN OPENING S TOCK FOR THE NEXT YEAR. AGGRIEVED AGAINST THE CIT(A) ORDER, THE REVENUE FILED THIS AP PEAL PLEADING THAT THE CIT(A) SHOULD NOT HAVE ALLOWED THE REVISED VALUE OF CLOSIN G STOCK FOR ASSESSMENT YEAR 2010-11 AS THE OPENING STOCK FOR ASSESSMENT YEAR 20 11-12. 3. WE HEARD THE RIVAL SUBMISSIONS. SIMILAR ISSUE C OME UP BEFORE THIS TRIBUNAL IN ASSESSMENT YEAR 2008-09. THE TRIBUNAL IN ITS ORDER IN ITA NO. 2160/MDS/2011 DATED 29.04.2013, HAS SET ASIDE THE ISSUE FOR FRESH CONSI DERATION BY THE ASSESSING OFFICER. FOR ASSESSMENT YEAR 2009-10 ALSO, THIS TRIBUNAL IN ITS ORDER IN ITA NO. 303/MDS/2014 DATED 30.04.2014 REMITTED BACK THE ISSUE TO THE AO TO CONSIDER THE JUDGEMENT OF HONBLE SUPREME COURT IN THE CASE OF VKJ BUILDERS A ND CONTRACTORS P. LTD., VS CIT 318 ITR 204. IN THE APPEAL FOR ASSESSMENT YEAR 201 0-11, THIS TRIBUNAL IN ITS ORDER IN ITA NO. 2591/MDS/2014 DATED 20.03.2015 HAS HELD THA T THE AO HAS NOT CONSIDERED :-3-: I.T.A. N0. 2362/MDS/2016 THE EXPLANATIONS GIVEN BY THE ASSESSEE IN PROPER MA NNER. THE LD. CIT(A) ALSO HAS NOT CONSIDERED THE ISSUE IN DETAIL. THEREFORE, IT SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND DIRECTED THE AO TO CONSIDER THE ISSU E AFRESH KEEPING IN VIEW THE ORDER OF THE TRIBUNAL IN ITA NO. 2160/MDS/2011 DATE D 28.04.2013. IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES, WE SET ASIDE THE ORD ER OF THE CIT(A) AND DIRECT THE AO TO CONSIDER THE ISSUE AFRESH KEEPING IN VIEW THE ORDER OF THE TRIBUNAL IN ITA NO. 2160/MDS/2011 DATED 28.04.2013, AS HELD BY THIS TRI BUNAL FOR ASSESSMENT YEAR 2010-11, THE YEAR BEFORE THIS ASSESSMENT YEAR. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON WEDNESDAY, THE 26 TH DAY OF JULY, 2017 AT CHENNAI. SD/- ( . . . ) (N.R.S. GANESAN) ! ' /JUDICIAL MEMBER SD/- ( ) (S. JAYARAMAN) ' /ACCOUNTANT MEMBER /CHENNAI, 0 /DATED: 26 TH JULY, 2017 JPV & )12 32 /COPY TO: 1. %/ APPELLANT 2. )*% /RESPONDENT 3. 4 ( )/CIT(A) 4. 4 /CIT 5. 2 ) /DR 6. 7 /GF