ACIT, Circle-16(2), Hyd, Hyderabad V. Maruthi Tubes Pvt.Ltd., Sec'bad, Secunderabad

ITA 269/HYD/2016

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1541 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 29-08-2019
• Assessment Year: 2007-2008
• Appeal Filed On: 08-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Assessee Lawyers: S RAMA RAO
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.269/HYD/2016 ASSESSMENT YEAR: 2007 - 08 ACIT, CIRCLE - 16(2), 7 TH FLOOR, AAYAKAR BHAWAN, BASHEERBAGH, HYDERABAD. VS. M/S. MARUTHI TUBES PVT LTD., 133, A - BLOCK, AI - KARIM TRADE CENTRE, RANIGUNJ, SECUNDERABAD 003. PAN: AABCM 5529 J (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI S. RAMA RAO REVENUE BY: SRI NILANJAN DEY, DR DATE OF HEARING: 11/06/2019 DATE OF PRONOUNCEMENT: 14 /06/2019 ORDER PER A. MOHAN ALANKAMONY, A.M. : THIS APPEAL IS FILED BY THE REVENUE AGGRIEVED BY THE ORDER OF LD. CIT(A) - 4, HYDERABAD, DATED 03/12/2015 IN APPEAL NO. 0318/DCIT, CIR.16(2)/15 - 16/CIT(A) - 4/HYD/15 - 16 PASSED U/S 143(3) R.W.S 147 AND 150 OF THE ACT FOR THE ASSESSMENT YEAR 2007 - 08. 2. THE REVENUE HAS RAISED THREE GROUNDS IN ITS APPEAL HOWEVER THE CRUX OF THE ISSUE IS THAT THE LD CIT (A) HAS E R RED IN DELETING THE ADDITION MADE BY THE LD AO AMOUNTING TO RS. 2,74,15,771/ - TOWARDS SUPPRESSION OF SALES. 2 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PRIVATE LIMITED COMPANY ENGAGED IN THE BUSINESS OF MANUFACTURE OF HDPE PIPES AND UNDERTAK ING WORKS CONTRACT FILE D ITS RETURN OF INCOME FOR THE AY 2007 - 08 ON 1/2/2008 ADMITTING TOTAL INCOME OF RS. 72,05,099/ - . SUBSEQUENTLY THE CASE WAS SELECTED FOR SCRUTINY AND ASSESSMENT WAS COMPLETED U/S 143(3) R.W.S 147 AND 150 OF THE ACT ON 31/12/2012, WH EREIN AMONGST CERTAIN OTHER ADDITIONS, THE LD AO MADE ADDITION OF RS. 2,74,15,771/ - TOWARDS SUPPRESSION OF SALES. 4. DURING THE COURSE OF SCRUTINY PROCEEDINGS, THE L D . AO OBSERVED FROM THE NOTES FORMING PART OF ACCOUNTS , THE QUANTITATIVE DETAILS FOR PRODUCTION OF STOCK REVEALED THE SALE VALUE OF HDPE PIPES DURING THE RELEVANT ASSESSMENT YEAR AS RS. 8,77,41,5 1 1/ - . HOWEVER, IN THE P & L ACCOUNT ONLY THE AMOUNT OF RS. 6,0 3,25,740/ - WAS DISCLOSED. THEREFORE, THE LD AO ADDED THE DIFFERENCE AMOUNT OF RS. 2,74,15,771/ - (8,77,41,5 1 1 RS. 6,03,25,740/ - ) AS SUPPRESSION OF SALES IN THE HANDS OF THE ASSESSEE. 5. ON APPEAL, THE LD CIT (A) AFTER VERIFYING THE STATEMENT OF ACCOUNT S FURNISHED BY THE ASSESSEE AND REMAND REPORT , OBSERVED THAT THE AMOUNT OF RS. 2,74,15,771/ - WAS EMBEDDED IN THE SALE DISCLOSED BY THE ASSESSEE UNDER THE HEAD PROJECT DIVISION SALES OF RS. 16,57,85,698/ - . THEREFORE, THE LD . CIT (A) DELETED THE ADDITION OF RS. 2,74,15,771/ - WHICH WAS MADE ERRONEOUSLY IN THE HANDS OF THE ASSESSEE BY THE LD AO. 3 6. BEFORE US, THE LD . DR COULD NOT SUCCESSFULLY CONTROVERT TO THE FINDINGS OF THE L D . CIT (A). MOREOVER, AFTER EXAMINING THE STATEMENT OF ACCOUNTS AND THE COPY OF T HE LEDGER ACCOUNTS (SALES) (PROJ.DIV) PRODUCED BEFORE US FORMING PART OF PAPER BOOK PAGE NO.19 WE FIND THAT THE AMOUNT OF RS. 2,74,15,771/ - IS EMBEDDED IN THE SALE OF RS. 16,57,85,698/ - DISCLOSED BY THE ASSESSEE IN THE P & L ACCOUNT UNDER THE HEAD I. INCOM E SUB - HEAD PROJECT DIVISION SALES . THEREFORE, WE DO NOT FIND IT NECESSARY TO INTERFERE WITH THE ORDER OF THE LD CIT (A) ON THE ISSUE. ACCORDINGLY, THE GROUND RAISED BY THE REVENUE IS DEVOID OF MERITS. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 14 TH JUNE, 2019. SD/ - SD/ - ( P. MADHAVI DEVI) ) ( A. MOHAALANKAMONY JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 14 TH JUNE , 2019 OKK COPY TO: - 1) M/S. MARUTI TUBES PVT LTD., 133, A - BLOCK, AI KARIM TRADE CENTRE, RANIGUNJ, SECUNDERABAD 500003. 2) ACIT, CIRCLE - 16(2), 7 TH FLOOR, AAYAKAR BHAWAN, BASHEERBAGH, HYDERABAD. 3) THE CIT(A) - 4 , HYDERABAD . 4) THE PR. CIT - 4 , HYDERABAD 5) THE DR, ITAT, HY DERABAD 6) GUARD FILE