Low Loss Products Pvt. Ltd., Baroda V. The ACIT, Circle-1(2), Baroda

ITA 2572/AHD/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8993 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 13-01-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 31-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAMES KURIAN HEARING CONCLUDED
• Assessee Lawyers: S N SOPARKAR
• Keywords: Retraction
• Section: 143(3)

Judgement Text

ITA NO. 2572 / AHD/201 3 ASSESSMENT Y EAR: 20 10 - 11 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND S S GODARA JM] ITA NO. 2572 /AHD/201 3 ASSESSMENT Y EAR : 20 10 - 11 LOW LOSS PRODUCTS PVT. LTD. ..... .......... .APPELLANT REGD. OFF. 103, CHA NDRAK ALA TOWER, OPP. BHAVAN S SCHOOL, RH JANI MARG, BARODA 390 004. [PAN: AABCL 6144 L] VS. ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 1(2), BARODA. .. ......... RESPONDENT APPEARANCES BY S.N. SOPARKAR FOR THE A PPELLANT JAMES KURIAN FOR THE R E SPONDENT HEARING CONCLUDED ON: 13.01.2017 ORDER PRONOUNCED ON : 28 .03.2017 O R D E R PER PRAMOD KUMAR , AM: 1. BY WAY OF THIS APPEAL, THE ASSESSEE APPELLANT HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 10 TH SEPTEMBER 2013, P ASSED BY THE LEARNED C IT(A), IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) OF THE INCOME TAX ACT 1961, FOR THE ASSESSMENT YEAR 20 10 - 11 . 2. GRIEVANCES RAISED BY THE APPELLANT, AS PRESSED BEFORE US, ARE AS FOLLOWS : - 1 L D. CIT(A ) ERRED IN LAW AND ON F ACTS IN CONFIRMING ADDITION MADE BY AO OF RS.94,00,000/ - SIMPLY RELYING ON STATEMENT OF MANAGING DIRECTOR DURING SURVEY PROCEEDINGS. BOTH LOWER AUTHORITIES IGNORED SUBMISSIONS, DOCUMENTARY EVIDENCE AND ACCOUNTING ENTRIES DULY RECONCILING DIFFERENCE IN STO CK VALUE & LABOUR CHARGES IN RESPECT OF PLANT/ MACHINERY & BUILDING CONSTRUCTION IN THE BOOKS OF ACCOUNTS INCORPORATING DISCLOSURE MADE AT THE ITA NO. 2572 / AHD/201 3 ASSESSMENT Y EAR: 20 10 - 11 PAGE 2 OF 3 TIME OF SURVEY. LD. CIT(A) OUGHT TO HAVE DELETED ADDITION MADE ON THE BASIS OF SURVEY STATEMENT. IT BE SO HELD N OW. 2. LD. CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMING ACTION OF AO THAT DISCLOSURE AT THE TIME OF SURVEY MADE ON OATH WAS BINDING AND WAS AGAIN CONFIRMED BY MANAGING DIRECTOR TAKING BACK RETRACTION. LD. CIT(A) FAILED TO APPRECIATE PROVISIONS OF LAW THAT STATEMENT DURING SURVEY PROCEEDINGS IS NOT BINDING. LD. CIT(A) OUGHT TO HAVE DELETED ADDITION SOLELY MADE ON THE BASIS OF SURVEY STATEMENT. IT BE SO HELD NOW. 3. BRIEFLY STATED, THE RELEVANT MATERIAL FACTS ARE AS FOLLOWS. THE ASSESSEE WAS SUBJECT ED TO SURVEY PROCEEDINGS ON 20 TH AUGUST, 2009. DURING THE COURSE OF THIS SURVEY, THE ASSESSEE DISCLOSED AN UNDISCLOSED INCOME OF RS.94 LAKHS. DURING THE ASSESSMENT PROCEEDINGS, HOWEVER, THE ASSESSING OFFICER FORMED THE VIEW THAT THIS ADDITIONAL DISCLOSUR E HAS NOT BEEN OFFERED TO TAX. ON THE BASIS OF THIS FINDING, HE MADE AN ADDITION OF RS.94 LAKHS TO THE INCOME RETURNED BY THE ASSESSEE. AGGRIEVED, ASSESSEE CARRIED THE MAT T ER IN APPEAL BUT WITHOUT ANY SUCCESS. NOT SATISFIED, THE ASSESSEE IS IN FURTHER A PPEAL BEFORE US. 4 . WE HAVE HEARD THE RIVAL CONTENTIONS , PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF THE APPLICABLE LEGAL POSITION. 5. WE HAVE TAKEN NOTE OF ASSESSEE S CONTENTION THAT THE ASSESSEE HAS OFFERED VOLUN TARY DISCLOSURE IN BOOKS OF ACCOUNT BY REDUCING DEBIT SIDE OF THE PROFIT & LOSS ACCOUNT, INSTEAD OF OFFERING THE SAME AS INCOME. LEARNED COUNSEL FOR THE ASSESSEE HAS ALSO INVITED OUR ATTENTION TO THE SUBMISSIONS DATED 22.02.2013 AND 26.02.2013, EXPLAIN ING ACCOUNTING EFFECT THROUGH THE JOURNAL ENTRIES. WE FIND T HAT SHORT PLEA OF THE ASSESSEE IS THAT NONE OF THE AUTHORITIES BELOW HAVE EXAMINED THIS ASPECT OF THE MATTER AT ALL, AND THAT, AS EVIDENT FROM PERUSING THE MATERIAL ON RECORD AND ORDERS OF THE AU THORITIES BELOW, PLEA IS CORRECT. THERE ARE NO FINDINGS ON THIS ASPECT OF THE MATTER BY THE AO OR THE CIT ( A ) AND IT WOULD NOT INDEED BE PROPER TO EXAMINE THAT ASPECT OF THE ITA NO. 2572 / AHD/201 3 ASSESSMENT Y EAR: 20 10 - 11 PAGE 3 OF 3 MATTER, FOR THE FIRST TIME, AT THIS FORUM. WITH THE CONSENT OF THE PARTIES, THERE FORE, WE DEEM IT FIT AND PROPER TO REMIT THE MATTER TO THE FILE OF THE ASSESSING O FFICER FOR ADJUDICATION DENOVO, BY WAY OF A SPEAKING ORDER, IN ACCORDANCE WITH THE LAW AND AFTER GIVING A FAIR AND REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. WE ORDE R SO. GROUND NOS.1 & 2 ARE THUS ALLOWED FOR STATISTICAL PURPOSE. 6. GROUND NOS.3 & 4 DO NOT CALL FOR ANY SPECIFIC ADJUDICATION AT THIS STAGE, AND AS SUCH, ARE DISMISSED AS INFRUCTUOUS . 7. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES IN T HE TERMS INDICATED ABOVE. PRONOUNCED IN THE OPEN COURT ON THIS 28 TH DAY OF MARCH , 2017 . SD/ - SD/ - S S GODARA PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) DATED: 28 TH DAY OF MARC H , 201 7 . PBN/* COPIES TO : (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD