Shree Nakoda Synthetics Private Limited, Ahmedabad V. The Dy. Commissioner of Income Tax, Circle-4(1)(1), Ahmedabad

ITA 328/AHD/2024

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 1778 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 27-08-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 21-02-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Corroborative evidences
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Smt. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member Shree Nakoda Synthetics Private Limited 2, New Cloth Market, Outside Raipur Gate, Sarangpur, Ahmedabad City, Ahmedabad-380002. Gujarat PAN: AAGCS5568J (Appellant) Vs Dy.Commissioner of Income Tax, Circle-4(1)(1), Ahmedabad (Respondent) Assessee Represented: Shri Chetan Agrawal, A.R. Revenue Represented: Shri Alpesh Parmar, Sr.D.R. Date of hearing : 28-08-2024 Date of pronouncement : 04-09-2024 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against appellate order dated 05.02.2024 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the assessment order passed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2018-19. ITA No. 328/Ahd/2024 Assessment Year 2018-19 I.T.A No. 328/Ahd/2024 A.Y. 2018-19 Page No Shree Nakoda Synthetics Pvt. Ltd. vs. DCIT 2 2. The brief facts of the case is that the assessee is a company engaged in the business of manufacturing and processing of Cloth. For the Asst. Year 2018-19, assessee filed its Return of Income on 10/10/2018 declaring total income of Rs.87,47,420/-. The return was selected for scrutiny assessment and Assessing Officer after verification found discrepancy in the opening inventory/Stock with that of the finished goods which resulted under valuation of the stock by Rs.12,56,572/-. Since the assessee could not give cogent explanation with corroborative evidences, the same was treated as unexplained income of the assessee. In appeal before Ld. CIT(A), the assessee’s submission that the same due to typographical error in quantitative details was not accepted thereby dismissed the appeal filed by the assessee. 3. During the course of hearing before us, Ld. Counsel for the assessee submitted the correct quantitative details as certified by the Chartered Accountant as follows: CERTIFICATE On verification of books of accounts and other relevant documents produced before us, we certify following quantitative details of raw material and finished goods are as per books of accounts for financial year 2017-18 i.e. assessment year 2018-19 in the case of Shree Nakoda Synthetics Private Limited PAN No. AAGCS5568J. In kgs Particulars Opening Stock Purchase Consumption Closing Stock Raw material Quantity Quantity Quantity Quantity Value Gery Fabrics 545829 16781450 16502012 825267 44004992 I.T.A No. 328/Ahd/2024 A.Y. 2018-19 Page No Shree Nakoda Synthetics Pvt. Ltd. vs. DCIT 3 Particulars Opening Stock Production Shrinkage Sales Closing Stock Finished Goods Quantity Quantity Quantity Quantity Quantity Value Cloth 659975 16502012 301941 16311073 548973 54390512 For, Siddharth J Shah & Associates. Chartered Accountants SIDDHARTH JASWANT SHAJ CA Siddharth J Shah M. No. -121013 FR NO.-126712W Place: Ahmedabad Date-29-12-2023 UDIN: 23121013BGSXBZ9487 3.1. Thus Ld. Counsel requested to set aside the matter back to the file of Assessing Officer for verification of the above details and pass order on merits. 4. Ld. Sr. D.R. has no serious objection in setting aside the issue back to the file of Jurisdictional Assessing Officer. 5. Recording the above submissions of rival parties, the above Certificate being a new document produced for the first time before us and which requires verification by the Ld. A.O., we deem it fit to set aside this issue to the file of Jurisdictional Assessing Officer with the direction to give proper opportunity of hearing to the assessee and pass order in accordance with law. I.T.A No. 328/Ahd/2024 A.Y. 2018-19 Page No Shree Nakoda Synthetics Pvt. Ltd. vs. DCIT 4 6. In the result, the appeal filed by the Assessee is allowed for statistical purpose. Order pronounced in the open court on 04 -09-2024 Sd/- Sd/- (ANNAPURNA GUPTA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad : Dated 04/09/2024 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद