The ACIT, Circle-3(2), Ahmedabad V. M/s. Stitchwell Garments, Ahmedabad

ITA 2413/AHD/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8723 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 12-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIMAL I MEHTA
• Assessee Lawyers: M K PATEL
• Keywords: Tax effect

Judgement Text

ITA NO. 2413 /AHD/201 5 ASSESSMENT YEAR: 20 11 - 12 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD SM C BENCH, AHMEDABAD [ CORAM : PRAMOD KUMAR, A CCOUNTANT MEMBER ] ITA NO. 2413 /AHD/ 201 5 ASSESSMENT YEAR : 20 11 - 12 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 3(2), AHMEDABAD. ... .. APPELLANT VS. STITCHWELL GARMENTS, .RESPONDENT 2011/B, PHASE - 4, GIDC, VATVA, AHMEDABAD 382 445. [ PAN : AA JPS 0523 P ] APPEARANCES BY : VIMAL I. MEHTA FOR THE APPELLANT M.K. PATEL FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 14.08 .2017 DATE OF PRONOUNCING THE ORDER : 17 .0 8 .2017 O R D E R 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 10 TH JUNE, 2015, PASSED BY THE L EARNED CIT(A) - 3, AHMEDABAD FOR THE ASSESSMENT YEAR 20 11 - 12 , ON THE FOLLOWING GROUND S : - 1. THE ID. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE OF PACKING MATERIAL EXPENSES OF RS.20,10,080/ - . 2. THE ID.CIT(A) HAS ERRED IN LAW AND ON FACTS BY NOT APPRECIATING THE FACTS THAT MONTH - WISE RATIO OF PACKING MATERIAL EXPENSES VIS - A - VIS TURNOVER VARIES FROM 4.92% TO 1 3.49% AND THE ASSESSES HAD FAILED TO SATISFACTORILY EXPLAIN THE REASONS FOR SUCH VARIANCE AND DISPROPORTIONATE CONSUMPTION OF PACKING MATERIAL. ITA NO. 2413 /AHD/201 5 ASSESSMENT YEAR: 20 11 - 12 3. THE ID.CIT(A) HAS ERRED IN LAW AND ON FACTS BY NOT APPRECIATING THE FACTS THAT THE ASSESSEE HAD FAILED TO MAINTAIN STOCK REGISTER OF PACKING MATERIAL AND HAD NOT SHOWN IN THE BOOKS OF ACCOUNT ANY OPENING STOCK OR CLOSING STOCK OF PACKING MATERIAL. 4. THE ID. CIT(A) HAS ERRED IN LAW AND ON FACTS BY HOLDING THAT THE AO HAD NOT GIVEN ANY JUSTIFI CATION OR REASONING FOR MAKING THE ADDITION IGNORING THE FACT THAT IN THE ASSESSMENT ORDER THE AO HAD PINPOINTED THE DISCREPANCIES, WHICH THE ASSESSEE FAILED TO EXPLAIN EITHER DURING ASSESSMENT PROCEEDINGS OR AT APPELLATE STAGE. 5. THE ID.CIT(A) HAS ERRED IN LAW AND ON FACTS BY FOLLOWING THE DECISION IN THE ASSESSEE'S OWN CASE FOR A . Y . 2008 - 09, 2009 - 10 AND 2010 - 11 THOUGH THE FACTS POINTED OUT IN THE ASSESSMENT FOR THE YEAR UNDER CONSIDERATION ARE DIFFERENT TO THAT OF EARLIER YEARS. 6. ON THE F ACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER TO THE ABOVE EXTENT. 7. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME T AX (A) MAY BE SET - ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED TO THE ABOVE EXTENT. 2. WE HAVE NOTICED THAT THE TAX EFFECT INVOLVED IN TH IS APPEAL IS LESS THAN RS.10,00,000/ - . IN VIEW OF THIS UNDISPUTED FACT AND IN THE LIGHT OF CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015, WE ARE OF THE CONSIDERED VIEW THAT TH IS APPEAL IS LIABLE TO BE DISMISSED AS WITHDRAWN FOR THE SIMPLE REASON THAT TAX EFFECT INVOLVED IN TH IS APPEAL IS LESS THAN RS.10,00,000/ - . 3. IN THE RESULT, APPEAL IS DISMISSED. PR ONOUNCED IN THE OPEN COURT TODAY ON THE 17 TH DAY OF AUGUST , 2017. SD/ - PRAMOD KUMAR (ACCOUNTANT MEMBER) DATED: AHMEDABAD, THE 17 TH DAY OF AUGUST , 2017. PBN/* ITA NO. 2413 /AHD/201 5 ASSESSMENT YEAR: 20 11 - 12 COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLANT TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD