M/S Reliable Industrial Ventures Ltd., Bhopal V. THE ACIT 3(1), Bhopal

ITA 360/IND/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5771 (ITAT-INDORE)
• Duration Of Justice: 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 22-08-2016
• Assessment Year: 2002-2003
• Appeal Filed On: 18-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOHD JAVED
• Assessee Lawyers: S N AGRAWAL

Judgement Text

M/S RELIABLE INDUSTRIAL VENTURES LTD. ITA NO. 360/IND/2016` 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JM & SHRI O.P. MEENA, AM ITA NO. 360/IND/2016 A.Y.2002-03 M/S RELIABLE INDUSTRIESL VENTURES LTD. BHOPAL PAN AAACW 2791H ::: APPELLANT VS ACIT 3(1) BHOPAL ::: RESPONDENT APPELLANT BY SHRI S.N. AGRAWAL & SHRI PANKAJ MOGRA RESPONDENT BY SHRI MOHD. JAVED DATE OF HEARING 22.8.2016 DATE OF PRONOUNCEMENT 22.8.2016 O R D E R THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A)-2, BHOPAL, DATED 29.1.201 6. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS THAT THE LE ARNED CIT(A) WAS NOT JUSTIFIED IN MAINTAINING THE ADDITION MA DE BY THE ASSESSING OFFICER ON ACCOUNT OF SALE OF SCRAP. M/S RELIABLE INDUSTRIAL VENTURES LTD. ITA NO. 360/IND/2016` 2 3. WE HAVE HEARD BOTH THE SIDES. AFTER CONSIDERING TH E CASE OF THE ASSESSEE, THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS CONSUMED DOUBLE THE RAW MATERIAL DOUBL E THAN THE PRECEDING YEAR. IN THE PRECEDING YEAR THE ASSESSEE HAS SHOWN SCRAP SALE OF RS.2,19,527/- THEREF ORE THERE MAY BE SCRAP OF SALE BUT THE ASSESSEE DID NOT SH OW THE SALE OF SCRAP. THEREFORE, THE ASSESSING OFFICER M ADE THE ADDITION AND THE LEARNED CIT(A) CONFIRMED THE SAME. NOW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT IN THE ASSESSMENT YEAR 2001-02 THE ASSESSEE HAS MADE SCRAP SALE OF RS.2,19,257/- BUT IN THE ASSESSMENT YEARS 2003-04 AND 2004-05 THE ASSESSEE HAS NOT MADE ANY SCRAP SALE. THEREFORE, THE ASSESSEE DID NO T SHOW THE SCRAP. THE ASSESSEE IS IN THE BUSINESS OF MANUFACTURING AND SELLING OF CIGARETTE AND TOBACOO. BO TH THESE PRODUCTS ARE EXCISEABLE AND THE ASSESSEE HAS M/S RELIABLE INDUSTRIAL VENTURES LTD. ITA NO. 360/IND/2016` 3 MAINTAINED PROPER BOOKS OF ACCOUNTS AND IF THE ASSESSEE WANTED TO SHOW ANY SCRAP, IT IS SUBJECT TO EXCISE. TH EREFORE, WHEN THE ASSESSEE DID NOT HAVE ANY SCRAP, THE ASSESSEE HAD NOT SHOWN THE SAME. THEREFORE, ON ESTIMATE BASIS, ADDITION CANNOT BE MADE ON SALE OF SCRAP. 5. ON THE OTHER HAND, THE LEARNED DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 6. HAVING HEARD THE PARTIES AND LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THE ASSESSEE HAS MAINTAINED BOOKS OF ACCOUNTS AND THE ACCOUNTS ARE SUBJECT TO AUDIT AND THE ASSESSING OFFICER HAS NOT POINTED OUT ANYTHING WITH THE HELP OF WHICH IT CAN BE SHOWN THAT T HE ASSESSEE HAD ANY SCRAP SALE. THEREFORE, WITHOUT ANY EVIDENCE, ON ESTIMATE BASIS, NO ADDITION CAN BE MADE. MOREOVER, THE ASSESSEE IS SUBJECT TO CENTRAL EXCISE. THEREFORE, THERE IS NO EVIDENCE BROUGHT ON RECORD B Y THE DEPARTMENT TO SHOW THAT IN CENTRAL EXCISE, THE ASSESSEE M/S RELIABLE INDUSTRIAL VENTURES LTD. ITA NO. 360/IND/2016` 4 HAS SHOWN ANY SCRAP SALES. THEREFORE, IN THE ABSENCE OF ANY MATERIAL, WE ALLOW THIS GROUND OF APPEAL. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED . PRONOUNCED IN OPEN COURT ON 22.8.2016 SD/- SD/ (O.P. MEENA) (D.T. G ARASIA) ACCOUNTANTMEMBER JUDICIAL MEMB ER 8 SEPTEMBER, 2016 DN/- M/S RELIABLE INDUSTRIAL VENTURES LTD. ITA NO. 360/IND/2016` 5