M/s. Jaleshwar Foundry, RAJKOT-GUJARAT V. The Income Tax Officer, Ward-2(3), RAJKOT-GUJARAT

ITA 524/RJT/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 76442 (ITAT-RAJKOT)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 05-03-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 26-12-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DR JAYANT B JHAVERI
• Assessee Lawyers: J C RANPURA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBULAL, SMC BENCH, RAJKOT BEFORE SHRI T. K. SHARMA, JM ITA NO. 524/RJT/2013 ASSESSMENT YEAR : 2006-07 M/S. JADESHWAR FOUNDRY, PLOT NO.303, GIDC, 100 FEET ROAD, 2, AJI INDUSTRIAL ESTATE, RAJKOT PAN : AABFJ 5005 F ( / APPELLANT) THE INCOME-TAX OFFICER, WARD 2(3), RAJKOT / RESPONDENT / ASSESSEE BY SHRI J.C. RANPURA, CA / REVENUE BY DR. JAYANT B. JHAVERI, DR / DATE OF HEARING 05.03.2014 !'# / DATE OF PRONOUNCEMENT 07.03.2014 / ORDER THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER DA TED 21.11.2013 OF CIT (A)- III, RAJKOT FOR THE ASSESSMENT YEAR 2006-07. THE V ARIOUS GROUNDS RAISED IN THIS APPEAL ARE AS UNDER:- 1. THE GROUNDS OF APPEAL MENTIONED HEREUNDER ARE W ITHOUT PREJUDICE TO ONE ANOTHER. 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) -III, RAJKOT [HEREINAFTER REFERRED TO AS THE CIT(A) ERRED ON F ACTS AS ALSO IN LAW IN CONFIRMING ADDITION OF RS.2,75,110/- MADE ON ACCOUN T OF UNDERVALUATION OF CLOSING STOCK. THE ADDITION MAY KINDLY BE DELETED. 3. THE LEARNED CIT(A) ERRED ON FACTS AS ALSO IN LAW IN CONFIRMING DISALLOWANCE OF RS.24,490/- MADE FROM EXPENSES RELA TED TO TELEPHONE & VEHICLE ON THE ALLEGED GROUND OF PERSONAL USE. THE DISALLOWANCE MAY KINDLY BE DELETED. 2. THE GROUND NO.1 IS GENERAL IN NATURE; THEREFORE NEEDS NO ADJUDICATION. 3. THE FACTS RELATED TO THE CONTROVERSY INVOLVED IN GROUND NO.2 ARE THAT THE ASSESSEE IS A FIRM, ENGAGED IN THE BUSINESS OF MANU FACTURING OF PETER ENGINE BLOCKS. THE ASSESSING OFFICER FRAMED THE ASSESSMENT U/S 143 (3) R.W.S. 263 OF THE ACT ON 21.12.2011, WHEREIN HE MADE ADDITION OF RS.2,75,110 /- TOWARDS UNDERVALUATION OF STOCK AS THE ASSESSEE FAILED TO FURNISH THE REQUIRE D DOCUMENTARY EVIDENCE IN RESPECT OF PURCHASE OF MOULDING BOXES AS WELL AS BOOK TREAT MENT OF THE SAME. ON APPEAL, IN 2 524-RJT-2013 - JADESHWAR FOUNDRY (SMC) THE IMPUGNED ORDER, THE LD. CIT(A) CONFIRMED THE DI SALLOWANCE. AGGRIEVED WITH THE ORDER OF LD. CIT(A), THE ASSESSEE IS NOW IN APPEAL BEFORE THIS TRIBUNAL. 4. AT THE TIME OF HEARING, ON BEHALF OF THE ASSESSE E, SHRI J.C. RANPURA, CA, APPEARED AND POINTED OUT THAT NOW THE ASSESSEE HAS LOCATED THE NECESSARY EVIDENCE IN RESPECT OF PURCHASE OF MOULDING BOXES A S WELL AS BOOK TREATMENT OF THE SAME GIVEN; THEREFORE, IN THE INTEREST OF JUSTICE, ONE MORE OPPORTUNITY BE ALLOWED TO THE ASSESSEE TO PRODUCE THESE DOCUMENTS BEFORE THE ASSESSING OFFICER. THE LD. DR OBJECTED TO THE SAME ON THE GROUND THAT SINCE THE A SSESSEE FAILED TO LOCATE THESE DOCUMENTS AT THE TIME OF HEARING BEFORE THE LD. CIT (A); THEREFORE, THE ORDER OF LD. CIT(A) BE UPHELD. 5. HAVING HEARD BOTH THE SIDES, I HAVE CAREFULLY GO NE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. IN PARAGRAPH 6 & 7 OF THE ASSESS MENT ORDER THE ASSESSING OFFICER STATED THAT THE ADDITION OF RS.2,75,110/- IS MADE B ECAUSE THE ASSESSEE FAILED TO FURNISH THE REQUIRED EVIDENCE IN RESPECT OF PURCHAS E OF MOULDING BOXES AS WELL AS THE BOOK TREATMENT OF THE SAME. NOW THE HAS LOCATED TH E NECESSARY DOCUMENTS, THEREFORE, I AM OF THE VIEW THAT IT WILL MEET THE E ND OF JUSTICE IF ONE MORE OPPORTUNITY IS ALLOWED TO THE ASSESSEE TO PRODUCE THE DOCUMENTARY EVIDENCE BEFORE THE ASSESSING OFFICER WHO WILL EXAMINE THE SAME AND RE-ADJUDICATE THE ADDITION OF RS.2,75,110/- AFRESH IN ACCORDANCE WITH LAW. I HOLD ACCORDINGLY. IN THIS CONTEXT, I MAY ALSO CLARIFY THAT IN CASE THE ASSESSEE FAILED TO PRODUCE NECESSA RY DOCUMENTARY EVIDENCES IN RESPECT OF PURCHASE OF MOULDING BOXES AS WELL AS TH E BOOK TREATMENT OF THE SAME BEFORE THE ASSESSING OFFICER, THE ASSESSING OFFICER IS AT LIBERTY TO REMADE THE ADDITION OF RS.2,75,110/-. 6. THE GROUND NO.3 IS AGAINST CONFIRMING THE DISALL OWANCE OF RS.24,490/- MADE FROM EXPENSES RELATED TO TELEPHONE AND VEHICLE ON A CCOUNT OF PERSONAL USE. IN RESPECT OF THIS GROUND, I HAVE HEARD BOTH THE SIDES . THIS DISALLOWANCE MADE BY THE ASSESSING OFFICER IS NEITHER EXCESSIVE NOR UNREASON ABLE; I THEREFORE DECLINE TO INTERFERE. GROUND NO.3 IS REJECTED. 3 524-RJT-2013 - JADESHWAR FOUNDRY (SMC) 7. IN THE RESULT, FOR STATISTICAL PURPOSES, THE APP EAL OF THE ASSESSEE IS TREATED AS PARTLY ALLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON THE DATE MEN TIONED HEREINABOVE. SD/- ( $.. &' / T. K. SHARMA) ( ) /JUDICIAL MEMBER *)& +) ,/ ORDER DATE: 07.03.2014 !$ /RAJKOT *BT / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT- M/S. JADESHWAR FOUNDRY, PLOT NO.303, GIDC, 100 FEET ROAD, 2, AJI INDUSTRIAL ESTATE, RAJKOT 2. / RESPONDENT- THE INCOME-TAX OFFICER, WARD 2(3), RAJKOT 3. ,0,1 * * 2 / CONCERNED CIT-II, RAJKOT 4. * * 2- / CIT(A)-III, RAJKOT 5 . 567 1, * 1#, !$ / DR, ITAT, RAJKOT 6 . 79 :; / GUARD FILE *)& / BY ORDER TRUE COPY PRIVATE SECRETARY, ITAT, RAJKOT