Assistant Commissioner of Income Tax, Circle-2(1),Panaji, Goa., Panaji V. M/s Mohit Ispat Ltd., Goa

ITA 285/PAN/2014

• Counselvise Citation: 28524114 RSA 2014
• Duration Of Justice: 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 21-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VINAY SINGH RAWAT
• Assessee Lawyers: SRINIVAS NAYAK
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI P.K. BANSAL, HONBLE ACCOUNTANT MEMBER AND SHRI D.T. GARASIA, HONBLE JUDICIAL MEMBER ITA NO. 244/PNJ/2014 : (ASST. YEAR : 2007 - 08) M/S. MOHIT ISPAT LIMITED 712, 7 TH FLOOR, GERA IMPERIUM, PATTO, PANAJI, GOA (APPELLANT) PAN : AACCM8154E VS. ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 2(1), PANAJI (RESPONDENT) ITA NO. 285/PNJ/2014 : (ASST. YEAR : 2007 - 08) ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 2(1), PANAJI (APPELLANT) VS. M/S. MOHIT ISPAT LIMITED 712, 7 TH FLOOR, GERA IMPERIUM, PATTO, PANAJI, GOA (RESPONDENT) PAN : AACCM8154E ASSESSEE BY : SRINIVAS NAYAK, CA REVENUE BY : VINAY SINGH RAWAT DATE OF HEARING : 25/11/2014 DATE OF PRONOUNCEMENT : 25/11/2014 O R D E R PER P.K. BANSAL 1. BOTH THESE CROSS APPEALS HAVE BEEN FILED AGAINST THE ORDER OF CIT(A) DT. 28.5.2014. 2. THE ONLY ISSUE INVOLVED IN THE REVENUES APPEAL RELATES TO THE DELETION OF THE ADDITION OF RS.9,20,495/ - AND RS.18,407/ - . SINCE THE TAX EFFECT INVOLVED IN THE APPEAL FILED BY THE REVENUE IS LESS THAN RS. 4 LACS IN VIEW OF THE INSTRUCTION NO. 5/2014 FNO279/MISC.142/2007 - ITJ(PT) DATED 10 TH JULY, 2014 WE DISMISS THE APPEAL FILED BY THE REVENUE AS NOT ADMITTED. 3. IN THE APPEAL FILED BY THE ASSESSEE, THE ONLY ISSUE RELATES TO SUSTENANCE OF ADDITION OF RS.4,65,602/ - . THE BRIEF FACTS OF THIS CASE ARE THAT THE AO NOTED THAT 2 ITA NOS. 244 & 285/PNJ/2014 (ASST. YEAR : 2007 - 08) THE ASSESSEE HAS CLAIMED PURCHASES RELEVANT T O WRONG CENVAT AMOUNTING TO RS.58,20,026/ - TOWARDS THE RAW MATERIAL CONSUMPTION. THE AO, THEREFORE, AFTER HEARING THE ASSESSEE MADE ADDITION OF RS. 67,58,928/ - IN THE RETURNED INCOME OF RS.52,85,440/ - WHICH INCLUDES CENVAT AMOUNTING TO RS.9,38,892/ - . THE ASSESSEE WENT IN APPEAL BEFORE CIT(A). CIT(A) DELETED THE ADDITION SO FAR IT RELATES TO CENVAT AMOUNTING TO RS.9,38,892/ - BUT SUSTAINED THE ADDITION OF RS.4,65,602/ - BEING PROFIT @ 8% ON THE PURCHASES AMOUNTING TO RS.58,20,026/ - . 4. WE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY CONSIDERED THE SAME . IN OUR OPINION, NO INTERFERENCE IS CALLED FOR IN THE ORDER OF CIT(A). CIT(A) AFTER APPRECIATING THE FACTS HAS PASSED AN EXHAUSTIVE AND DETAILED ORDER. WE AGREE WITH CIT(A) THAT IN CASE OF SUCH PURCHASES THE WHOLE OF AMOUNT RELATING TO THE PURCHASES CANNOT BE DISALLOWED; ONLY THE PROFIT ON SUCH PURCHASES CAN BE ADDED. WE, ACCORDINGLY, DISMISS THE GROUND TAKEN BY THE ASSESSEE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE AS WELL AS REVENUE STANDS DISMI SSED. 6. ORDER PRONOUNCED IN THE OPEN COURT ON 25/11/2014. S D / - (D.T.GARASIA) JUDICIAL MEMBER S D / - (P.K. BANSAL) ACCOUNTANT MEMBER PLACE : PANAJI / GOA DATED : 2 5 /11/ 201 4 *SSL* COPY TO : (1) APPELLANT (2) RESPONDENT (3) CIT CONCERNED (4) CIT(A) (5) D.R (6) GUARD FILE TRUE COPY, BY ORDER