MAHINDRA SONA LTD, MUMBAI V. DCIT CIR 2(2), MUMBAI

ITA 3343/MUM/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3295 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 09-05-2014
• Court: TRIBUNAL
• Assessee Lawyers: PRASAD BAPAT
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE S/SHRI B.R. BASKARAN (AM) & RAMLAL NEGI (JM) I.T.A. NO. 3343 /MUM/ 2014 (ASSESSMENT YEAR 20 1 0 - 11 ) MAHINDRA SONA LIMITED GATEWAY BUILDING APOLLO BUNDER FORT MUMBAI - 400 001. VS. DCIT , CI RCLE 2(2) AAYAKAR BHAVAN M.K. ROAD MUMBAI - 400 020. ( APPELLANT ) ( RESPONDENT ) PAN NO . AAACM3524A ASSESSEE BY SHRI PRASAD BAPAT DEPARTMENT BY SHRI SANJEEV JAIN DATE OF HEARING 6.6 . 201 6 DATE OF PRONOUNCEMENT 6.6 . 201 6 O R D E R PER B.R. BASKARAN, A M : - THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 1 2. 3 .2014 PASSED BY LEARNED CIT(A) - 5 , MUMBAI AND IT RELATES TO A.Y. 20 1 0 - 11 . 2. THE S OLITARY ISSUE URGED IN THIS APPEAL RELATES TO ADDITION ON CENVAT CREDIT AND VAT CR EDIT U/S. 145A OF THE ACT. 3. WE HAVE HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSEE HAS BEEN FOLLOWING EXCLUSIVE METHOD OF ACCOUNTING FOR ACCOUNTING THE TAXES IN THE BOOKS OF ACCOUNT. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING O FFICER GROSSED UP THE VALUE OF OPENING STOCK AND CLOSING STOCK WITH APPLICABLE TAXES AND THE SAME RESULTED IN ADDITION OF ` 34.04 LAKHS. IN THE APPELLATE PROCEEDINGS, THE LEARNED CIT(A) DETERMINED THE IMPACT IN FOLLOWING INCLUSIVE METHOD, ON THE PROFIT AT ` 5,41,245/ - AND ACCORDINGLY DIRECTED THE ASSESSING OFFICER TO SUSTAIN THE SAME IN PLACE OF ` 34.04 LAKHS MADE BY HIM. STILL AGGRIEVED, THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. MAHINDRA SONA LIMITED 2 4. LEARNED AR INVITED OUR ATTENTION TO PAGE NO. 47 OF THE PAPER BOOK AND SUBMITTED THAT THERE IS NO IMPACT ON THE PROFIT EVEN IF INCLUSIVE METHOD OF ACCOUNTING TAX IS FOLLOWED. HE SUBMITTED THAT THE ASSESSEE, IN PAGE NO. 47 OF THE PAPER BOOK HAS DEMONSTRATED THE SAME. HE FURTHER SUBMITTED THAT THE IDENTICAL ISSUE WAS CONSIDERED IN OTHER ISSUES BY LEARNED CIT(A) AND HE HAS RESTORED THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR EXAMINING IDENTICAL TYPES OF RECONCILIATION STATEMENT FILED BY THE ASSESSEE AND IN THE SET ASIDE PROCEEDINGS THE ASSESSING OFFICER DID NOT MAKE ANY A DDITION. 5. L EARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE RECONCILIATION STATEMENT FURNISHED BY THE ASSESSEE MAY BE RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR REEXAMINATION. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. T HE ASSESSEE HAS DEMONSTRATED IN THE STATEMENT PREPARED BY HIM THAT THERE IS NO IMPACT ON THE NET PROFIT , IF TAXES ARE ACCOUNTED EITHER UNDER EXCLUSIVE OR UNDER INCLUSIVE METHO D . WE HAVE NOTICED THAT THE TAX AUTHORITIES HAVE NOT EXAMINED THE STATEMENT FURN ISHED BY THE ASSESSEE THOUGH LEARNED CIT(A) HAS MADE CERTAIN COMPUTATIONS AND GRANTED PARTIAL RELIEF TO THE ASSESSEE. WE HAVE NOTICED THAT HE HAS NOT FOUND FAULT WITH THE STATEMENT FURNISHED BY THE ASSESSEE. UNDER THESE SET OF FACTS, WE ARE OF THE VIEW TH AT THIS ISSUE REQUIRES FRESH EXAMINATION AT THE END OF THE ASSESSING OFFICER BY DULY CONSIDERING RECONCILIATION STATEMENT FURNISHED BY THE ASSESSEE. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY LEARNED CIT(A) ON THIS ISSUE AND RESTORE THE SAME TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO EXAMINE THE RECONCILIATION STATEMENT FURNISHED BY THE ASSESSEE AND TAKE APPROPRIATE DECISION IN ACCORDANCE WITH LAW AFTER AFFORDING NECESSARY OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. MAHINDRA SONA LIMITED 3 7. IN THE RESULT, APP EAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER HAS BEEN PRONOU NCED IN THE OPEN COURT ON 6 .6 .2016 . SD/ - SD/ - (RAMLAL NEGI ) (B.R.BASKARAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER MU MBAI ; DATED : 6 / 6/ 20 1 6 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) ITAT, MUMBAI PS