Chandu Mal Cotton Factory, Jaitu V. The Assessing Officer, Faridkot

ITA 281/ASR/2013

• Counselvise Citation: 28120914 RSA 2013
• Duration Of Justice: 1 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 23-04-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 29-04-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: R S BANSAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P. JAIN, ACCOUNTANT MEMBER I.T.A. NO. 281 (ASR)/2013 ASSESSMENT YEAR: 2008-09 PAN: AACFC0702B CHANDU MAL COTTON FACTORY, VS. ASSESSING OFFICER , JAITU, DIST.-FARIDKOT WARD-III(3), FARIDKOT (APPELLANT) (RESPONDENT) APPELLANT BY: SH. R.S. BANSAL, CA RESPONDENT BY: SH. MAHAVIR SINGH, SR.DR DATE OF HEARING: 23.04.2014 DATE OF PRONOUNCEMENT: 29.04.2014 ORDER PER BENCH 1. THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDER OF LEARNED CIT(A), BATHINDA, DATED 19.02.2013 PASSED FOR THE ASSESSMEN T YEAR 2008-09. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : I. THAT THE LEARNED COMMISSIONER OF INCOME TAX(APPEAL) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS. 2,37 ,690/- ON ACCOUNT OF SHORTAGE IN COTTON. II. IT IS, THEREFORE, PRAYED THAT THE ADDITION OF RS. 2 ,37,690/- CONFIRMED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) MA Y KINDLY BE DELETED OR ANY OTHER RELIEF WHICH MAY DEEM FIT BE A LLOWED. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSI NG OFFICER FOUND THAT AT THE BEGINNING OF THE YEAR, THE ASSESSEE HAD OPENING STOCK OF COTTON AT 3010.97 QTLS. AND DURING THE YEAR UNDER CONSIDERATION, 3308 .24 QTLS. OF COTTON WAS RECOVERED FROM THE GINNING PROCESS AND IN THIS WAY THE TOTAL QUANTITY OF COTTON 2 I.T.A. NO. 281 (ASR)/2013 ASSESSMENT YEAR: 2008-09 WORKED OUT AT 6319.21 QTLS. OUT OF THIS QUANTITY, 5 829.08 QTLS. WAS SOLD DURING THE YEAR WHILE THE CLOSING STOCK WAS SHOWN AT 445. 76 QTLS. IN THIS WAY, SHORTAGE IN THIS ACCOUNT WAS CLAIMED AT 44.37 QTLS. THE ASSE SSING OFFICER NOTICED THAT IN IDENTICAL CASES OF M/S SHAM COTTON & GENERAL MILLS, KOT KAPURA AND M/S GANPATI COTTON & GENERAL MILLS, KOT KAPURA, NO SHOR TAGE IN COTTON ACCOUNT WAS SHOWN. WHEN CONFRONTED WITH THESE CASES, THE AS SESSEE EXPLAINED THAT AFTER THE MONTH OF MARCH DUE TO SUMMER SEASON, THE MOISTU RE GETS REDUCED RESULTING IN SHORTAGE OF WEIGHT IN COTTON BALES AND THE SHORT AGE WAS REASONABLE AND GENUINE. HOWEVER, THE ASSESSING OFFICER WAS NOT SAT ISFIED WITH THE EXPLANATION TENDERED BY THE ASSESSEE BECAUSE IN IDENTICAL CASES OF THE SAME AREA, NO SUCH SHORTAGE HAD BEEN CLAIMED. HE ACCORDINGLY MADE AN A DDITION OF RS. 2,37,690/- AND DISALLOWED THE CLAIM OF THE ASSESSEE REGARDING SHORTAGE IN COTTON ACCOUNT. LEARNED CIT(A), BATHINDA, CONFIRMED THE ACTION OF T HE ASSESSING OFFICER. 3. WE HAVE HEARD THE RIVAL CONTENTION AND PERUSED T HE FACTS OF THE CASE. WE CONCUR WITH THE VIEWS OF LEARNED CIT(A), BATHIND A, THAT ONCE THE COTTON IS PRESSED IN THE FORM OF BALES, THERE IS HARDLY ANY S COPE OF WEIGHT LOSS. IT HAS ALSO BEEN OBSERVED THAT IN THE IMMEDIATELY PRECEDING YEA R, THE ASSESSEE HAD CLAIMED SHORTAGE IN COTTON ACCOUNT AT 0.06% AND THE SAME WA S ALLOWED BY HIS PREDECESSOR VIDE APPELLATE ORDER BEARING APPEAL NO. 237-IT-CIT(A)/BTI/09-10 DATED 15.09.2010 BEING VERY NEGLIGIBLE. HOWEVER, IN THE YEAR UNDER CONSIDERATION, THE SHORTAGE HAS BEEN CLAIMED AT 0.7 6% WHICH IS APPARENTLY 3 I.T.A. NO. 281 (ASR)/2013 ASSESSMENT YEAR: 2008-09 HIGHLY EXCESSIVE AND UNREASONABLE AND DOES NOT BEAR ANY COMPARISON WITH THE CLAIM OF SHORTAGE DISCLOSED IN THE IMMEDIATELY PREC EDING YEAR. THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE HAS NOT BEEN ABLE TO EXPLAIN THE REASONS FOR SUCH HUGE SHORTAGE WHEN COMPARED WITH THE IMMEDIATELY PR ECEDING YEAR IN THE CASE OF THE ASSESSEE ITSELF. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, WE FIND NO INFIRMITY IN THE ORDER OF LEARNED CIT(A), BATHINDA, WHO HAS R IGHTLY CONFIRMED THE ACTION OF THE ASSESSING OFFICER IN MAKING THE ADDITION OF RS. 2,37,690/- ON ACCOUNT OF SHORTAGE IN COTTON ACCOUNT. THUS, BOTH THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE DISMISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH APRIL, 2014 SD/./- SD/./- (H.S. SIDHU) (B.P. JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 29 TH APRIL, 2014 /RK/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: CHANDU MAL COTTON FACTORY, JAITU, D IST.-FARIDKOT 2. ASSESSING OFFICER, WARD-III(3), FARIDKOT 3. THE CIT(A), 4. THE CIT, 5. THE SR DR, I.T.A.T., TRUE COPY BY ORDER 4 I.T.A. NO. 281 (ASR)/2013 ASSESSMENT YEAR: 2008-09 (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.