DCIT, Circle - 3, Kolkata, Kolkata V. M/s. Sachdeva Steel Works Pvt. Ltd., Kolkata

ITA 50/KOL/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 48273 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2011
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2005-2006
• Appeal Filed On: 11-01-2011
• Court: TRIBUNAL
• Department Lawyers: R K SAHA
• Assessee Lawyers: SUBHAS AGARWALA
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA () BEFORE , /AND , . . !' ) [BEFORE HONBLE SRI MAHAVIR SINGH, JM & HONBLE SHR I C. D. RAO, AM] # # # # / I.T.A NO. 50/KOL/2011 $% &' $% &' $% &' $% &'/ // / ASSESSMENT YEAR: 2005-06 DEPUTY COMMISSIONER OF INCOME-TAX, VS. M/S. SACHD EVA STEEL WORKS PVT. LTD. CIRCLE-3, KOLKATA. (PAN AADCS 7342 D) ( )* /APPELLANT ) (+,)*/ RESPONDENT ) FOR THE APPELLANT: SHRI R. K. SAHA FOR THE RESPONDENT: SHRI SUBHAS AGARWALA !- / ORDER PER MAHAVIR SINGH, JM ( , , , , ) THIS APPEAL BY REVENUE IS ARISING OUT OF THE ORDER OF CIT(A)-1, KOLKATA IN APPEAL NO.667/CIT(A)-1/CIR-3/07-08 VIDE DATED 30.09.2010. THE ASSESSMENT WAS FRAMED BY ACIT, CIRCLE-3, KOLKATA U/S. 143(3) OF THE INCOME T AX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2005-06 VIDE H IS ORDER DATED 31.12.2007. 2. THE ONLY ISSUE IN THIS APPEAL OF THE REVENUE IS AGAINST THE ORDER OF CIT(A) DELETING THE ADDITION ON SHORT FALL IN STOCK OF SPONGE IRON LUM PS AND M. S. INGOT MADE BY A.O. FOR THIS, REVENUE HAS RAISED THE FOLLOWING TWO EFFECTIVE GROU NDS: 1) THAT IN THE FACTS AND CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.2,20,76,119/- MADE BY THE A.O. O N THE GROUND OF SHORT FALL IN STOCK OF SPONGE IRON LUMPS AND M. S. INGOT WITHOUT PROPERLY APPRECIATING THE FACTS AND EVIDENCE DISCUSSED BY THE A.O. 2) THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN ACCEPTING THE ASSESSEES STATEMENT THAT THE SHORT FALL IN STOCK W AS DUE TO PROCESSED LOSS WHEN THE ASSESSEE FAILED TO SUBSTANTIATE ITS CLAIM AND THERE WAS NO SUCH LOSS IN THE EARLIER YEAR. 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE AS WELL AS LD. SR. D.R. FAIRLY STATED THAT THE ORDER OF CIT(A) IS NOT A SPEAKING ONE AND WITHO UT ALLOWING OPPORTUNITY TO ASSESSING OFFICER, HE DECIDED THE ISSUE AS UNDER: ON CONSIDERATION OF THE FOLLOWING VIEWS EXPRESSED VIZ A VIZ THE A.O. AND THE LD. A/R IT IS QUITE APPARENT THAT THE ARGUMENT COULD APPEAL MO RE TO BE METALLURGIST THAN AN OFFICE OF 2 ITA 50/K/2011 M/S. SACHDEVA STEEL WORKS PVT. LTD. A.Y.05-06 THE LAW. THE TECHNICALITY OF THE PROVEN HAS BEEN D ETAILED BY THE LD. A/R. TO THE A.O. NO GENUINE OR VERIFIABLE REASON WAS FORWARDED BY THE A SSESSEE. THE A.O. HAS HOWEVER NOT REFERRED TO COMPARABLE CASES TO ILLUSTRATE THE POIN T. MANIFESTING THE ARGUMENTS PUT BEFORE ME WERE BEFORE THE A.O. THESE GROUNDS HAVE BEEN CLARIFIED WITH A PERSONAL INSPIRATION TO VERIFY THE ARGUMENTS PUT FORWARD BY COUNSEL FOR THE ASSESSEE. THE ADDITION WITHOUT REBUTTAL OF THE PROCESS OUTLINED BY THE ASS ESSEE RECEIVED TO BE VERIFIED. IDEALLY THIS ISSUE SHOULD BE REVISITED BY THE A.O. IN THE CIRCUMSTANCES, I CANNOT UPHOLD AN ADDITION WHICH DOES NOT DEMOLISH THE PROBLEM OF MAN UFACTURE AND THE LOSS RESULTANT FROM IT. THIS GROUND IS, THEREFORE, ALLOWED. WE FIND THAT CIT(A) HAS ADMITTED ADDITIONAL EVIDENC E PRODUCED BY ASSESSEE AND WITHOUT GIVING FINDINGS ON THOSE EVIDENCES, DECIDED THE ISS UE IN FAVOUR OF ASSESSEE. EVEN THE CIT(A) HAS NOT ALLOWED OPPORTUNITY TO THE ASSESSING OFFICE R. HENCE, AS AGREED BY BOTH THE SIDES, WE SET ASIDE THE ISSUE TO THE FILE OF THE ASSESSING OF FICER. REVENUE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. 5. ORDER PRONOUNCED IN OPEN COURT. SD/- SD/- . . , !' , (C. D. RAO) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ( ' ' ' ') )) ) DATED 12TH JULY, 2011 ./ $01 2 JD.(SR.P.S.) !- 3 +4 5!4&6- COPY OF THE ORDER FORWARDED TO: 1 . )* / APPELLANT DCIT, CIRCLE-3, KOLKATA. 2 +,)* / RESPONDENT, M/S. SACHDEVA STEEL WORKS PVT. LTD., FLAT NO. B-1, ABISHKAR APARTMENT, P-307, LAKE TOWN, BLOCK-A, KOLK ATA-89. 3 . -$ ( )/ THE CIT(A), KOLKATA 4. -$ / CIT, KOLKATA 5 . => +$ / DR, KOLKATA BENCHES, KOLKATA ,4 +/ TRUE COPY, !-$?/ BY ORDER, 1 /ASSTT. REGISTRAR .