Income-tax Officer, V. Shri Anand Omprakash Pahade, Jalna

ITA 397/PUN/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 1485 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 10-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HITENDRA NINAWE
• Section: 143(3)

Judgement Text

- IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC , PUNE , BEFORE MS. SUSHMA CHOWLA, JM . / ITA NO. 397 /PN/201 6 / ASSESSME NT YEAR : 20 11 - 12 THE INCOME TAX OFFICER, WARD - 1(3), JALNA . / APPELLANT VS. SHRI ANAND OMPRAKASH PAHADE, PROP. OF ADINATH STEEL RE - ROLLING MILLS, PLOT NO.A - 28/5, ADDL.MIDC AREA, JALNA 431203 . / RESPONDENT PAN: ALSP P4628A / APPELLANT BY : S HRI HITENDRA NINAWE / RESPONDENT BY : NONE / DATE OF HEARING : 2 5 . 0 7 .201 6 / DATE OF PRONOUNCEMENT: 29 . 0 7 .201 6 / ORDER PER SUSHMA CHOW LA, J M : TH IS APPEAL FILED BY THE REVENUE IS AGAINST THE ORDER OF CIT (A) - I , AURANGABAD , DATED 04 . 1 2 .20 1 5 RELATING TO ASSESSMENT YEAR 20 11 - 12 AGAINST ORDER PASSED UNDER SECTION 143(3) OF THE INCOME - TAX ACT , 1961 (IN SHORT THE ACT) . ITA NO. 397 /PN/20 1 6 SHRI ANAND OMPRAKASH PAHADE 2 2 . DESPITE SERVICE OF NOTICE, NONE APPEARED ON BEHALF OF THE ASSESSEE NOR ANY APPLICATION WAS MOVED FOR ADJOURNMENT. HOWEVER, THE ISSUE RAISED IN THE PRESENT APPEAL IS SQUARELY COVERED BY THE ORDER OF TRIBUNAL IN ASSESSEES OWN CASE IN EARLIER YEARS. 3. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - I) ON THE FACTS & IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A), AURANGABAD HAS ERRED IN DELETING THE ADDITION OF RS.38,63,893/ - MADE ON ACCOUNT OF SUPPRESSED PRODUCTION. II) ON THE FACTS & IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A), AURANGABAD HAS ERRED IN NOT CONSIDERING THE CIRCUMSTANTIAL EVIDENCES ON THE BASIS OF WHICH SUPPRESSED PRODUCTION IN THE CASE OF THE ASSESSEE WAS RIGHTLY TAXES. III) ON THE FACTS & IN THE CIRCUMSTANCES OF THE CASE, THE LEARNE D CIT(A), AURANGABAD HAS DECIDED THE MATTER PREMATURELY. IV) ON THE FACTS & IN THE CIRCUMSTANCES OF THE CASE, THE ORDER OF THE LEARNED CIT(A), AURANGABAD BE QUASHED AND THAT THE ORDER OF THE AO BE RESTORED. BE RESTORED. 4. THE ISSUE RAISED IN THE PRESENT APPEAL IS I N RELATION TO THE ADDITION MADE ON ACCOUNT OF SUPPRESSED PRODUCTION . 5. BRIEFLY, IN THE FACTS OF THE CASE , THE ASSESSEE WAS ENGAGED IN THE MANUFACTURE OF TMT BARS. THE ASSESSING OFFICER HAD MADE AN ADDITION OF RS. 38,63,893/ - ON THE BASIS OF CONSUMPTION O F ELECTRICITY AND SINCE THE CLANDESTINE REMOVAL OF GOODS WITHOUT PAYMENT OF EXCISE DUTY WAS DETECTED BY THE CENTRAL EXCISE DEPARTMENT INCLUDING INVESTIGATION AGENCY I.E. DGCEI. NO SUCH INVESTIGATION WAS CARRIED OUT BY THE EXCISE AUTHORITIES FOR THE YEAR U NDER CONSIDERATION. HOWEVER, SINCE THE ADDITION WAS MADE IN THE EARLIER YEARS, THE ITA NO. 397 /PN/20 1 6 SHRI ANAND OMPRAKASH PAHADE 3 SAME WAS COMPUTED BY THE ASSESSING OFFICER FOR THE YEAR UNDER CONSIDERATION ALSO. 6. THE CIT(A) ON THE OTHER HAND, RELYING ON THE ORDER OF TRIBUNAL IN THE CASE OF BHAGYA LAXMI STEEL ALLOYS PVT. LTD. IN ITA NO.1292/PN/2012 HAD DELETED THE SAID ADDITION, SINCE THE PROCEEDINGS BEFORE THE EXCISE AUTHORITIES WAS SUBJECT MATTER OF APPEAL BEFORE CESTAT, WHO HAD ALLOWED THE CLAIM OF ASSESSEE. IT MAY BE POINTED OUT HEREIN ITSELF T HAT NO INVESTIGATION WAS CARRIED OUT AGAINST THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION AND ALSO THERE IS NO ADMISSION OF ANY CLANDESTINE REMOVAL OF GOODS WITHOUT PAYMENT OF EXCISE DUTY BEFORE ANY EXCISE AUTHORITIES OR ANY DETECTION BY THE DGCEI OR ANY PETITION BEFORE THE SETTLEMENT COMMISSION FOR THE YEAR UNDER CONSIDERATION. 7. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF CIT(A). 7. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF CIT(A). 8. THE ISSUE ARISING IN THE PRESENT APPEAL IS SQUARELY COVERED BY THE ORDER OF TRIBUNAL IN ASSESSEES OWN CASE RELATING T O ASSESSMENT YEAR 200 7 - 08 IN ITA NOS.245/PN/2012 AND 640/PN/2012 , WITH LEAD ORDER IN ITA NO S . 231 & 232 /PN/2012 . THE TRIBUNAL VIDE ITS ORDER DATED 0 5.0 8 .2015 HAD IN TURN, RELYING ON EARLIER ORDER IN THE CASE OF OM ROLLING MILLS PVT. LTD. AND OTHER CONNECTE D APPEALS VIDE ITA NOS.125 TO 127/PN/2012 AND ITA NOS.430 & 431/PN/2012 AND OTHER APPEALS VIDE CONSOLIDATED ORDER DATED 15 . 07 . 2015 , HAD DELETED THE ADDITION MADE ON ACCOUNT OF SUPPRESSED PRODUCTION CONSEQUENT TO ERRATIC CONSUMPTION OF ELECTRICITY. THE TRI BUNAL FURTHER IN ASSESSEES OWN CASE RELATING TO ASSESSMENT YEAR 2009 - 10 IN ITA NOS.1558/PN/2012 AND 1629/PN/2012 WITH ITA NO. 397 /PN/20 1 6 SHRI ANAND OMPRAKASH PAHADE 4 LEAD ORDER IN ITA NO.1292/PN/2012, VIDE ORDER DATED 15.07.2015 HAD ALSO DELETED THE SIMILAR ADDITION ON ACCOUNT OF SUPPRESSED PRODUCTION. FOLLOWING THE SAME PARITY OF REASONING, W E FIND NO MERIT IN THE ADDITION MADE IN THE HANDS OF THE ASSESSEE ON ACCOUNT OF SUPPRESSED PRODUCTION CONSEQUENT TO ERRATIC CONSUMPTION OF ELECTRICITY. 9. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED . ORDER PRONOUNCED ON THIS 29 TH DAY OF JU LY , 201 6 . SD/ - (SUSHMA CHOWLA) / JUDICIAL MEMBER / PUNE ; DATED : 29 TH JU LY , 201 6 . GCVSR GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPOND ENT; 3. ( ) / THE CIT(A) - I , AURANGABAD ; 4. / THE PR. CIT - 1 , AURANGABAD ; 5. 6. , , , - / DR SMC , ITAT, PUNE; / GUARD FILE . / BY ORDER , / / TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE