MAHARASHTRA STEELS ROLLING MILLS P.LTD, MUMBAI V. ASST CIT CC-35, MUMBAI

ITA 4804/MUM/2011

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7666 (ITAT-MUMBAI)
• Duration Of Justice: 7 year(s) 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 22-06-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 15-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B B RAJENDRA PRASAD
• Assessee Lawyers: SAMJUKTA CHOWDHURY
• Keywords: Fair market value
• Section: 143(3); 142(1); 115JB; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI BEFORE SHRI M.BALAGANESH, AM AND SHRI RAM LAL NEGI, JM ITA NO.4804/MUM/2011 : ASST.YEAR 2005-2006 M/S. MAHARASHTRA STEEL S ROLLING MILLS PRIVATE LIMITED, PLOT NO.190 LBS MARG, BHANDUP (WEST) MUMBAI 400 078. PAN : AABCM6109Q. VS. THE ASST.COMMISSIONER OF INCOME - TAX CENTRAL CIRCLED -35 MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : MS.SAMJUKTA CHOWDHURY RESPONDENT BY : SHRI B.B.RAJENDRA PRASAD [CIT-DR] DATE OF HEARING : 19.12.2018 DATE OF PRONOUNCEMENT : 0 9 . 01.2019 . O R D E R PER M.BALAGANESH (AM) : THIS APPEAL IS DIRECTED AGAINST THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME-TAX, CENTRAL-III, (IN SHORT `THE LD.CIT) U/S 263 OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS `THE ACT) DATED 29.03.2010, SETTING ASIDE THE ORDER PASSED BY THE LEARNED ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE 35, MUMBAI (IN SHORT `THE LD.AO) U/S 143(3) OF THE ACT DATED 28.12.2007 FOR THE ASSESSMENT YEAR 2005-2006. 2. THOUGH THE ASSESSE HAS RAISED VARIOUS GROUNDS, THE ONLY EFFECTIVE ISSUE TO BE DECIDED IS WHETHER THE LD.CIT WAS JUSTIFIED IN INVOKING THE REVISIONARY JURISDICTION U/S 263 OF THE ACT IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE BRIEF FACTS OF THIS ISSUE ARE THAT THE ASSESSE IS A PRIVATE LIMITED COMPANY ENGAGED IN THE BUSINESS OF STEEL ROLLING AND HAD FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2005-2006 ON 31.10.2005 DECLARING TOTAL ITA NO.4804/MUM/2011. M/S.MAHARASHTRA STEELS ROLLING MILLS PVT.LTD.. 2 INCOME OF RS.4,91,12,940 UNDER THE NORMAL PROVISIONS OF THE ACT AND RS.4,98,26,022 U/S 115JB OF THE ACT. THE ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT ON 28.12.2007 ACCEPTING THE RETURNED INCOME. LATER, THIS ASSESSMENT WAS SOUGHT TO BE REVISED BY ISSUANCE OF SHOW CAUSE NOTICE U/S 263 OF THE ACT BY THE LEARNED ADMINISTRATIVE COMMISSIONER (IN SHORT `THE LD.CIT), HOLDING THAT THE ORDER PASSED BY THE LD.AO IS ERRONEOUS INASMUCH AS IT IS PREJUDICIAL TO THE INTEREST OF THE REVENUE, IN RESPECT OF THE FOLLOWING ISSUE:- IT IS SEEN FROM THE ANNEXURE TO SUBMISSIONS MADE DATED 28.12.2007, THAT THE ASSESSEE COMPANY DURING THE FINANCIAL YEAR RELEVANT TO AY 2005-06 PAID RS.4,84,15,406/- IN RESPECT OF ANGLE CONVERSION CHARGES TO SEVEN PARTIES VIZ. M/S.EAGLE STEEL, VINAR ISPAT LTD, R.S.INDUSTRIES LTD., BHUWALKA STEEL INDUSTRIES LTD., SHRI VENKATESH STEEL, INDUSTRIAL MANUFACTURERS AND MAHARASHTRA POWER TRANSMISSION STRUCTURES PVT. LTD. IT IS SEEN FROM THE DETAILS OF EXPENSES CLAIMED DURING THE YEAR THAT ANGLE CONVERSION CHARGES HAVE BEEN PAID AT HIGHER RATES TO GROUP CONCERNS NAMELY M/S.EAGLE STEELS, M/S.R.S.INDUSTRIES AND M/S.BHUWALKA STEELS INDUSTRIES LTD, WHICH IS HIGHER BY RS.140/- , RS.333/- AND RS.336/- RESPECTIVELY PER METRIC TON AS COMPARED TO THOSE PAID TO OUTSIDE PARTY NAMELY M/S.VINAR ISPAT LTD. SIMILARLY JOB CHARGES PAID TO M/S.MAHARASHTRA POWER TRANSMISSION STRUCTURES (P) LTD. (A SUBSIDIARY COMPANY) IS RS.1591 PER MT MORE THAN THE LABOUR CHARGES PAID TO M/S.INDUSTRIAL MANUFACTURER. FURTHER NO JUSTIFICATION HAS BEEN BROUGHT OUT ON RECORD FOR PAYING HIGHER CONVERSION CHARGES TO RELATED CONCERNS. ACCORDINGLY THE EXCESS AMOUNT WAS LIABLE TO BE DISALLOWED U/S 40A(2)(A) OF THE I.T.ACT. 4. THE ASSESSEE REPLIED IN RESPONSE TO THE SHOW CAUSE NOTICE AND THE SUBMISSIONS OF THE ASSESSEE IN BRIEF ARE AS UNDER:- (I) FOR THE YEAR UNDER CONSIDERATION, WE HAVE GOT CERTAIN WORK OF OURS MANUFACTURED FROM OUTSIDE PARTIES ON JOB WORK BASIS. ITA NO.4804/MUM/2011. M/S.MAHARASHTRA STEELS ROLLING MILLS PVT.LTD.. 3 (II) APART FROM M/S EAGLE STEEL IN WHICH THE COMPANY IS THE PARTNER AND MAHARASHTRA POWER TRANSMISSION STRUCTURE P LTD. WHICH IS A SUBSIDIARY OF THE COMPANY, REST ALL JOB WORKERS ARE THE OUTSIDE / THIRD PARTIES FOR US. (III) THE CONTENTION AS PUT IN BY YOU SAYING THAT M/S BHUWALKA STEEL INDUSTRIES LTD AND M/S.R.S.INDUSTRIES (ROLLING MILLS LTD.) ARE THE SISTER CONCERN OF OURS ON THE GROUND OF COMMON DIRECTORS IS TOTALLY WRONG. (IV) DURING THE YEAR UNDER CONSIDERATION, THE MAJOR JOB WORK FOR US WAS DONE BY M/S EAGLE STEEL AND M/S VINAR ISPAT. THE SAID JOB WORK WAS AWARDED TO THE PARTIES TAKING INTO CONSIDERATION THE GEOGRAPHICAL PROXIMITY OF BOTH THESE UNITS. (V) A COMPARISON CHART SHOWING THE CONVERSION CHART PAID TO THE PARTIES ENCLOSED HEREWITH SHOWS THAT THE JOB WORK CHARGES PAID BY US TO EAGLE STEEL WAS LOWEST. (VI) THE CONVERSION CHARGES ARE DECIDED AS PER `CONVERSION AGREEMENT ENTERED BETWEEN THE PARTIES, WHICH ALSO DECIDE THE BURNING LOSS PROVIDED TO THE CUSTOMERS. THE SAID `CONVERSION AGREEMENT IS ENCLOSED HEREWITH. (VII) THE SAID MATTERS IN THE APPEALS TOO HAVE BEEN DECIDED FOR AY 2006-07. A COPY OF THE CIT(A) ORDER IS ENCLOSED HEREWITH AND THE DEPARTMENT HAS NOT REFERRED ANY SECOND APPEAL AGAINST THE CIT(A) ORDER. 5. THE LD.CIT CONCLUDED THAT THE ASSESSEE HAS PAID HIGHER PRICES FOR THE GOODS AND SERVICES TO ITS SISTER CONCERN OVER THE FAIR MARKET VALUE AND HENCE THE SAME REQUIRES TO BE DISALLOWED U/S 40A(2)(B) OF THE ACT. THE ASSESSEE ALSO PLEADED THAT MAJORITY OF THE JOB WORK DURING THE YEAR HAD BEEN DONE BY M/S.EAGLE STEEL AND M/S.VINAR ISPAT LTD. THE ASSESSEE FURNISHED COMPLETE RATE CHART SHOWING TOTAL COST INCURRED WITH RESPECT TO EACH AND EVERY PARTY, MORE PARTICULARLY WITH REGARD TO THESE TWO PARTIES. THE ASSESSEE PLEADED THAT THE TOTAL COST PAID TO M/S EAGLE STEEL (SISTER CONCERN) IS LESS WHEN COMPARED TO THAT OF THE PAYMENT MADE TO M/S VINAR ISPAT LTD. ACCORDINGLY IT WAS PLEADED THAT THE PROVISIONS OF SECTION 40A(2)(B) OF THE ACT CANNOT BE MADE APPLICABLE ITA NO.4804/MUM/2011. M/S.MAHARASHTRA STEELS ROLLING MILLS PVT.LTD.. 4 IN THE FACTS OF THE INSTANT CASE. THE LD.CIT HOWEVER OBSERVED THAT THE ASSESSEE HAS CHOSEN TO SHOW THAT THE TOTAL COST IN RESPECT OF M/S.EAGLE STEEL AT A LOWER SIDE BY SHOWING BURNING LOSS LESS THAN M/S.VINAR ISPAT LTD. HE OBSERVED THAT THE ASPECT OF BURNING LOSS HAS BEEN FRAMED DELIBERATELY TO AVOID THE DISALLOWANCE AND EVADE TAXES. HE CONCLUDED THAT ALTHOUGH THE CONVERSION CHARGES OF EACH OF THE FOUR FIRMS ENGAGED IN THE ANGLE CONVERSION CHARGES ARE DIFFERENT BUT BURNING LOSS OF M/S VINAR ISPAT LTD. HAS BEEN SHOWN AT RS.210 PER MT MORE THAN THE BURNING LOSS SUSTAINED BY OTHER THREE FIRMS AS THE BURNING LOSS IN THE CASE OF M/S VINAR ISPAT LTD. HAS BEEN SHOWN AT RS.2094 PER MT WHEREAS IN THE CASE OF OTHER THREE PARTIES WHICH STANDS AT RS.1884 PER MT EACH. THEREFORE, FOR A QUANTITY OF 16038.578 IN RESPECT OF M/S EAGLE STEELS, THE EXCESS CONVERSION CHARGES AMOUNTS TO RS.33,68,101/- (RS.10 X 16038.578). THESE EXCESS CONVERSION CHARGES OF RS.33,68,101/- PAID TO M/S EAGLE STEEL IN WHICH THE COMPANY IS A PARTNER IN COMPARISON TO VINAR ISPAT LTD IS DISALLOWABLE U/S 40A(2)(A) OF THE ACT. 6. SIMILARLY, THE JOB CHARGES PAID FOR CONVERSION OF SLAB TO M/S MAHARASHTRA POWER TRANSMISSION STRUCTURES PVT. LTD. (A SUBSIDIARY COMPANY OF THE ASSESSEE) IS RS.1591 PER MT (RS.2000.409) MORE THAN THE LABOUR CHARGES PAID TO M/S INDUSTRIAL MANUFACTURER WITHOUT ANY JUSTIFIABLE REASONS. THEREFORE FOR A QUANTITY OF 735 MT, THE EXCESS CONVERSION CHARGES AMOUNTS TO RS.11,69,385/- (RS.1591 X 735). THUS EXCESS CONVERSION CHARGES OF RS.11,69,385/- PAID TO M/S MAHARASHTRA POWER TRANSMISSION STRUCTURES PVT. LTD. NEEDS TO BE DISALLOWED U/S 40A(2)(A) AND BROUGHT TO TAX. 7. IN VIEW OF THE AFORESAID OBSERVATIONS OF THE LD.CIT, THE LD.CIT PASSED THE ORDER U/S 263 OF THE ACT DATED 29.03.2010 BY TREATING THE ORDER OF THE LD.AO ITA NO.4804/MUM/2011. M/S.MAHARASHTRA STEELS ROLLING MILLS PVT.LTD.. 5 U/S 143(3) OF THE ACT DATED 28.12.2007 AS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE REVENUE. THE LD.CIT ALSO DIRECTED THE LD.AO TO EXAMINE IN DETAIL AS TO WHETHER THE ASSESSEE HAD MADE PAYMENTS TO PERSONS SPECIFIED U/S 40A(2)(A) OF THE ACT, OTHER THAN M/S EAGLE STEEL AND M/S MAHARASHTRA POWER TRANSMISSION STRUCTURES PVT. LTD. AND ALSO TO EXAMINE WHETHER ANY EXCESSIVE OR UNREASONABLE PAYMENTS WERE MADE BY THE ASSESSEE TO THOSE PARTIES WARRANTING DISALLOWANCE U/S 40A(2)(A) OF THE ACT. WITH THESE OBSERVATIONS, THE ASSESSMENT ORDER WAS SET ASIDE BY THE LD.CIT. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 8. WE HAVE HEARD THE RIVAL SUBMISSIONS. AT THE OUTSET, THE LEARNED AR STATED THAT THE ASSESSEE HAD DULY FURNISHED THE ENTIRE DETAILS OF CONVERSION CHARGES AND JOB WORK CHARGES BEFORE THE LD.AO IN RESPONSE TO SPECIFIC QUERIES RAISED BY THE LD.AO U/S 142(1) OF THE ACT DURING THE COURSE OF ASSESSMENT PROCEEDINGS. THE COPY OF THE REPLY FILED BY THE ASSESSEE IN THIS REGARD IS ENCLOSED IN PAGES 1 AND 2 OF THE PAPER BOOK. THE RELEVANT PORTION OF WHICH IS REPRODUCED HEREUNDER FOR THE SAKE OF CONVENIENCE. DURING THE YEAR UNDER ASSESSMENT, WE HAVE GIVEN CERTAIN JOBS AND LABOUR JOB BASIS TO VARIOUS CONCERN. THE PRICE FOR ON LABOUR JOB IS DECIDE FROM TIME TO TIME AS PER MOU ENTERED WITH THEM. THE PRICE ARE DEPENDS ON TYPE OF RAW MATERIALS SUPPLIED TO THEM, TRANSPORT COST FACTOR (WHO WILL BEAR THE COST OF TRANSPORT) AND URGENCY OF THE MATERIAL (DEMAND AND SUPPLY FACTOR). AS PER THE MOU TERMS AND CONDITION, WE ARE ALLOWED CERTAIN PERCENTAGE OF LOSS TO THE CONVERSION AGENT, WHICH DIRECTLY EFFECT THE COST OF CONVERSION. THESE DEPENDS UPON THE PAST EXPERIENCE AND CURRENT MARKET TREND. DURING THE YEAR UNDER ASSESSMENT THE MAJOR JOB WORKS WAS DONE BY TWO PARTIES NAMELY M/S EAGLE STEELS (SITUATED AT TALOJA) AND ITA NO.4804/MUM/2011. M/S.MAHARASHTRA STEELS ROLLING MILLS PVT.LTD.. 6 M/S VINAR ISPAT LTD. (SITUATED AT CHANDRAPUR). M/S EAGLE STEELS WAS DOING THE JOB WORKS FOR THE SUPPLIES TO BE MADE BY US FOR OUR CUSTOMERS, IN AROUND, MUMBAI & GUJARAT. WHEREAS THE VINAR ISPAT WAS DOING THE JOB WORKS FOR SUPPLY TO BE MADE AT BUTIBORI (NAGPUR), JABALPUR AND RAIPUR. THIS DIVISION OF WORKS WAS MADE MAINLY TO SAVE THE TRANSPORT COST ON RAW MATERIALS AND FINISHED GOODS. THEREFORE, SOME TINY RATE DIFFERENCE WAS THERE BETWEEN THE MAJOR JOB WORKER ON AVERAGE COST. THIS AGAIN EFFECT THE COST FACTOR ON SIZE OF THE SECTION OF FINISHED PRODUCTS, RANDOM LENGTH AND FIXED LENGTH AND QUALITY OF THE RAW MATERIAL (MS AND HT) FOR H.T.MATERIAL CONVERSION JOB COST ARE MORE AS THE RAW MATERIAL IS ALSO COSTLIER. WE ARE ENCLOSING HERE WITH THE COMPARATIVE CHART FOR CONVERSION COST ON SECTION WISE, RANDUM LENGTH AND FIXED LENGTH WISE AS WELL AS THE AVERAGE YEARLY CONVERSION COST CHARGES. DURING THE YEAR UNDER ASSESSMENT A SMALL QUANTITY OF JOB WORK IS GIVEN TO R.S.INDUSTRIES LTD. (SITUATED AT JAIPUR) AS THE MATERIAL WAS SUPPLIED FROM THERE TO RAJASTHAN ONLY TO SAVE THE TRANSPORT COST WE HAVE GIVEN THE JOB WORK AT THERE ONLY. DURING THE YEAR UNDER ASSESSMENT A SMALL QUANTITY OF JOB WORK IS GIVEN TO M/S BHUWALKA STEELS IND. LTD. UNFORTUNATELY BHUWALKA STEELS IND. LTD. COULD NOT SUPPLIED THE PROPER MATERIAL DUE TO THE QUALITY PROBLEM WE HAVE STOP IT FOR FURTHER DEAL FOR CONVERSION CHARGES. FROM THE ABOVE AND AS PER THE ANNEXURE ATTACHED TO THIS LETTER THE CONVERSION COST PAID TO EAGLE STEEL IS MUCH LOWER THAN OTHER CONCERN. THE RATE DIFFERENCE BETWEEN THE PARTIES ARE EXPLAINED ABOVE. WE HOPE THAT THE ABOVE WILL FULFILL YOUR REQUIREMENTS. ANNEXURE DETAILS OF CONVERSION CHARGES PAID DURING THE YEAR 2004-2005 NAME ADDRESS JOB WORK QTY WASTAGE AMOUNT CONVERSION PAID RS./PMT RAW MATERIAL TOTAL COST (CONVERSION + RM COST) ITA NO.4804/MUM/2011. M/S.MAHARASHTRA STEELS ROLLING MILLS PVT.LTD.. 7 BURNING LOSS EAGLE STEELS C - 24, MIDC, TALOJA DIST. RAIGAD ANGLE 16038.578 9% 31,321,234.00 1953 1884 3837 VINAR ISPAT LTD. 201 STEEL CHAMBER, WARDHMAN NAGAR, NAGPUR ANGLE 5539.225 10% 10,039,005.00 1813 2094 3907 R.S. INDUSTRIES LTD. A - 241/242(B), ROAD NO.6D ANGLE 804.560 9% 1,726,190.00 2146 1884 4030 BHUWALKA STEESL IND. LTD. 204, VILLAGE KHUPRI WADA DIST. THANE ANGLE 2446.480 9% 5,328,977.00 2179 1884 4063 SHREE VEKATESH STEEL 87/3A, KHARSUNDI VILALGE, KHALAPUR TALUKA RAIGAD ROUND 6,900 5% 19,734.00 2860 1047 3907 INDUSTRIAL MANUFACTURERS MAHARASHTRA SLAB 187.670 0 76,574.00 409 0 409 MAHARASHTRA POWER 350, VILLAGE MUSARNE, BHIWANDI WADA ROAD WADA SLAB 735.000 1,470,000.00 2000 0 2000 TOWER 388.310 5% 1,553,240.00 4000 1047 5047 51,534,954.00 WORKING OF AVERAGE RAW MATERIAL COST BILLETS / INGOTS RM IND OMS 14,821,658.00 BILLETS/INGOTS RM IND. 278,518,072.00 BILLETS / INGOTS RM IMP 965,251,364.00 C.S.T 314,329.00 TOTAL RAW MATERIAL PURCHASE 1,258,905,423.00 TOTAL RAW MATERIAL PURCHASE (MT) 60,145.192 AVERAGE RAW MATERIAL COST 20,932.00 MAHARASHTRA STEELS ROLLING MILLS PRIVATE LIMITED A.Y. 2005-2006 ANNEXURE 3 DETAILS OF CONVERSION CHARGES RECEIVED. NAME ADDRESS QTY. MT AMOUNT K.E.C.INTERNATIONAL B - 190, MIDC AREA BUTIBORI, NAGPUR, MAHARASHTRA 1867.69 4,987,134.00 ITA NO.4804/MUM/2011. M/S.MAHARASHTRA STEELS ROLLING MILLS PVT.LTD.. 8 PRAKASH ISPAT UDYOG NAGPUR, MAHARASHTRA 1475.62 2,715,124.00 R.P.G.TRANSMISSION LTD DEORI, JABALPUR 487.24 1,246,675.00 SANVIJAY ROLLING & ENGG. WORKS 9,IMMAMBADA ROAD, NAGPUR 966.00 1,738,800.00 KALPATARU POWER TRANSMKISSION 101, PART - 111, GIDC SECTOR 28, GANDHINAGAR. 1328.21 3,004,730.00 13,692,463.00 9. THE AFORESAID DETAILS SUBMITTED BY THE LEARNED AR GOES TO PROVE CLEARLY THAT THE ASPECT OF PAYMENT OF CONVERSION CHARGES AND JOB CHARGES BY THE ASSESSEE TO VARIOUS PARTIES INCLUDING THE RELATED PARTIES AS SPECIFIED U/S 40A(2)(A) OF THE ACT TOGETHER WITH THE RESPECTIVE RATE PER MT PAID TO EACH OF THOSE PARTIES THEREON WERE THOROUGHLY EXAMINED BY THE LD.AO IN THE COURSE OF ASSESSMENT PROCEEDINGS ITSELF. THE LD.AO, AFTER EXAMINATION OF THOSE FACTUAL DETAILS SUBMITTED BY THE ASSESSEE WITH CORRESPONDING EVIDENCES THEREON, HAD ARRIVED AT A CONSCIOUS CONCLUSION THAT NO DISALLOWANCE U/S 40A(2)(A) OF THE ACT WAS WARRANTED IN THE FACTS AND CIRCUMSTANCES OF THE CASE WHILE COMPLETING THE ASSESSMENT. WE FIND THAT THE LD.CIT HAD ONLY TRIED TO SUBSTITUTE HIS KNOWLEDGE IN TECHNICAL ASPECT OF THE INDUSTRY THEREBY TRYING TO SUBSTITUTE HIS OPINION ON THE IMPUGNED ISSUE AS AGAINST THE OPINION ALREADY FRAMED BY THE LD.AO. THIS, IN OUR CONSIDERED OPINION, IS NOT PERMITTED UNDER THE REVISIONARY PROCEEDINGS U/S 263 OF THE ACT. RELIANCE IN THIS REGARD IS PLACED ON THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT V. GABRIEL INDIA LTD. [203 ITR 108] . 10. WE ALSO FIND THAT THIS ISSUE WAS THE SUBJECT MATTER OF DISALLOWANCE IN ASSESSMENT YEAR 2003-2004, WHICH TRAVELLED UP TO THE TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO.1980/MUM/2007 DATED 23.09.2009. WE FIND THAT THIS TRIBUNAL HAD REMANDED THE MATTER TO THE FILE OF LD.AO TO CONSIDER CERTAIN FACTORS WHICH AFFECT THE CONVERSION CHARGES SUCH AS QUANTITY PRODUCED, DISTANCE OF ITA NO.4804/MUM/2011. M/S.MAHARASHTRA STEELS ROLLING MILLS PVT.LTD.. 9 LOCATION, QUALITY OF PRODUCTION, PROMPTNESS IN DELIVERY SCHEDULE ETC. AND ACCORDINGLY DECIDED THE PAYMENT OF CONVERSION CHARGES MADE BY THE ASSESSEE. BUT WE FIND THAT FOR THE ASSESSMENT YEAR UNDER CONSIDERATION, THE ASSESSEE HAD DULY FILED THE QUANTITATIVE DETAILS, LOCATIONAL DETAILS, RATE PER MT ETC. TOGETHER WITH THE VALUATION OF RAW MATERIAL COST BEFORE THE LD.AO HIMSELF. HENCE, THERE IS NO NEED TO REMAND THIS ISSUE TO THE FILE OF THE LD.AO AS FAR AS THIS ASSESSMENT YEAR IS CONCERNED. WE FIND THAT THE ORDER OF THE TRIBUNAL FOR ASSESSMENT YEAR 2003-2004 WAS VERY MUCH AVAILABLE BEFORE THE LD.CIT WHILE PASSING THE REVISIONARY ORDER U/S 263 OF THE ACT. THIS TRIBUNAL ORDER HAD NOT BEEN CONSIDERED BY THE LD.CIT WHILE ARRIVING AT HIS SUBSTITUTED OPINION IN THE PLACE OF OPINION ALREADY FRAMED BY THE LD.AO. 11. IN VIEW OF THE AFORESAID OBSERVATIONS, WE HOLD THAT THE LD.CIT HAD ERRED IN INVOKING THE REVISIONARY JURISDICTION IN THE FACTS AND CIRCUMSTANCES OF THE CASE. ACCORDINGLY, WE QUASH THE REVISION ORDER PASSED BY THE LD.CIT U/S 263 OF THE ACT. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED. 12. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON THIS 09 TH DAY OF JANUARY, 2019. SD/- SD/- ( RAM LAL NEGI ) ( M.BALAGANESH ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED : 09 TH JANUARY, 2019. DEVDAS* / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. () / THE CIT, MUMBAI. 4. / CIT, CENTRAL-III, MUMBAI. ITA NO.4804/MUM/2011. M/S.MAHARASHTRA STEELS ROLLING MILLS PVT.LTD.. 10 / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI 5. , , / DR, ITAT, MUMBAI 6. [ / GUARD FILE.