M/s Siva Traders, Guntur V. The ITO, Ward-1, Guntur

ITA 310/VIZ/2002

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 7124 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 7 year(s) 8 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 1998-1999
• Appeal Filed On: 13-05-2002
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: G S S GOPINATH
• Section: 144

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH: VISAKHAPATNAM BEFORE: SRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SRI B.R. BASKARAN, ACCOUNTANT MEMBER I.T.A. NO.310/VIZAG/2002 ASSESSMENT YEAR : 1998-99 M/S. SIVA TRADERS, NAKARIKALLU VS. INCOME-TAX OFFICER, WARD-1, GUNTUR (APPELLANT) (RESPONDENT) PAN : S-512 APPELLANT BY : SHRI GVN HARI RESPONDENT BY : SHRI GSS GOPINATH O R D E R PER B..R. BASKARAN, ACCOUNTANT MEMBER : 1. THE APPEAL OF THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 8.3.2002 PASSED BY LD CIT(A), GUNTUR AND IT RELATES TO THE A SSESSMENT YEAR 1998-99. THE ONLY ISSUE URGED IN THIS APPEAL IS WHETHER LD CIT(A ) IS JUSTIFIED IN CONFIRMING THE DISALLOWANCE TO THE EXTENT OF RS.1,50,000/- TOWARDS LOW YIELD IN MILLING OF PADDY. 2. THE ASSESSEE IS IN THE BUSINESS OF MILLING T HE PADDY. THE AO COMPLETED THE ASSESSMENT TO THE BEST OF HIS JUDGMENT U/S 144 OF THE ACT SINCE THE ASSESSEE FAILED TO APPEAR BEFORE HIM WHEN THE CASE WAS POSTE D ON MORE THAN TWO OCCASIONS. ACCORDING TO THE ASSESSING OFFICER, THE YIELD OF RICE WORKED OUT TO 60.24% AND OF THE BROKEN RICE WAS 9.32% IN THE YEAR UNDER CONSIDERATION. ACCORDING TO THE AO THE NORMAL YIELD WOULD BE 64.5% OF RICE AND 5% OF THE BROKENS. FURTHER, IN THE IMMEDIATELY PRECEDING YE AR, THE ASSESSEE HIMSELF HAD SHOWN A YIELD OF RICE AT 66.2% AND YIELD OF BROKEN RICE AT 3.3%. HENCE, FOR THE YEAR UNDER CONSIDERATION, THE AO ADOPTED THE YIELD OF RICE AT 63% AND ACCORDINGLY WORKED OUT THE DIFFERENCE BETWEEN 63% A ND 60.24% AT RS.2,88,329/- THE AO TREATED THE SAME AS SALE OF RICE OUTSIDE THE BOOKS OF ACCOUNT AND ADDED THE SAME TO THE TOTAL INCOME OF THE ASSESSEE. LD CIT(A) REDUCED THE ADDITION TO A ROUND SUM FIGURE OF RS.1,50,000/-. STILL AGGRIEV ED, THE ASSESSEE IS IN APPEAL BEFORE US. 2 3. WE HAVE HEARD THE PARTIES. LD AR, BY PLACIN G RELIANCE ON THE FOLLOWING DECISIONS OF THIS BENCH, SUBMITTED THAT THE YIELD S HOWN BY THE ASSESSEE WAS ADEQUATE. A) SRI SRINIVASA RICE & FLOUR MILLS ITA NO.309/V /2002 RELATING TO ASSESSMENT YEAR 1998-99. IN THIS CASE, SINCE THE AO DID NOT FIND ANY DISCREPANCY IN THE BOOKS OF ACCOUNT OF THE ASSESSEE , THE TRIBUNAL DELETED THE ADDITION MADE TOWARDS DIFFERENCE IN YIELD. THE ASS ESSEE THEREIN HAD SHOWN A YIELD OF 55.11% B) SREE MURALI MOHANA BOILED & RAW RICE MILL ITA NO.4/VIZ/2006 RELATING TO THE ASSESSMENT YEAR 2002-03. IN THIS C ASE, THE ASSESSEE HAD SHOWN A YIELD OF 64.48%. THE ADDITION MADE WAS DELETED S INCE THE AO DID NOT POINT OUT ANY DEFECT IN THE BOOKS OF ACCOUNT. HOWEVER, IN THE INSTANT CASE, THE ASSESSEE HAS FAIL ED TO PRODUCE ANY BOOKS OF ACCOUNT BEFORE THE AO. THE ASSESSEE HAS ALSO FAILE D TO PRODUCE ANY MATERIAL TO CONTROVERT THE FINDING OF LD CIT(A), MORE PARTICULA RLY NO REASON WAS ADDUCED FOR THE REDUCTION IN THE YIELD DURING THE YEAR UNDER CO NSIDERATION, WHEN COMPARED WITH THE IMMEDIATELY PRECEDING YEAR. IN VIEW OF TH E ABOVE, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE DECISION OF LD CIT(A). 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. PRONOUNCED ACCORDINGLY ON 05/02/2010. SD/- SD/- (SUNIL KUMAR YADAV) (B.R. BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER VISAKHAPATNAM DATE : 05 TH FEBRUARY, 2010 A COPY OF THIS ORDER IS FORWARDED TO : 01 M/S. SIVA TRADERS, C/O. S. RAMA RAO, ADV, 103, I NDIRA DEVI NILAYAM, 3- 6-542/4, STREET NO.7, HIMAYNAGAR, HYDERABAD 02 INCOME-TAX OFFICER, WARD-1, GUNTUR 03 CIT, GUNTUR, 04 CIT (A), GUNTUR 05 CIT(DR), ITAT, VISAKHAPAATNAM 06 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY ITAT, VISAKHAPATNAM BENCH