KALYAN JEWELLERS, MUMBAI V. ASST CIT RG 14(1), MUMBAI

ITA 5398/MUM/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 8586 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 03-10-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 19-07-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH A, MUMBAI BEFORE SHRI I.P.BANSAL,JUDICIAL MEMBER & SHRI RAJENDRA, ACCOUNTANT MEMBER ITA NO.5398/MUM/2011(A.Y. 2008-09) M/S. KALYAN JEWELLERS, 273B, MUMBADEVI ROAD, 1 ST FLOOR, OPP. MUMBADEVI TEMPLE, MUMBAI 400 002. PAN:AAGFK 1234N (APPELLANT) VS. ASSTT. COMMISSIONER OF INCOME- TAX, RANGE 14(1), MUMBAI. (RESPONDENT) APPELLANT BY : SHRI SUNIL HIRAWAT RESPONDENT BY : SHRI MANOJ KUMAR DATE OF HEARING : 03/10/2012 DATE OF PRONOUNCEMENT : 1 0/10/2012 ORDER PER I.P.BANSAL, J.M THIS IS AN APPEAL FILED BY THE ASSESSEE. IT IS D IRECTED AGAINST ORDER DATED 31/5/2011 PASSED BY LD. CIT(A)-25, MUMBAI FO R ASSESSMENT YEAR 2008-09. GROUNDS OF APPEAL READ AS UNDER: 1. ON FACTS AND IN LAW, THE LEARNED CIT(A) HAD ERR ED IN CONFIRMING THE ADDITION OF RS.1,24,570/- IN THE VALUATION OF CLOSI NG STOCK WITHOUT APPRECIATING THE CORRECT FACTS OF THE CASE. UNDER T HE FACTS AND CIRCUMSTANCES OF THE MATTER, HE OUGHT TO HAVE DELETED THE SAID AD DITION OF RS. 1,24,570/-. 2. ON FACTS AND IN LAW, THE LEARNED CIT(A) HAD ERRE D IN CONFIRMING THE ADDITION OF RS.1 ,24,570/- BY MAKING TOTALLY INADMI SSIBLE AND UNSUSTAINABLE OBSERVATIONS WITHOUT CONSIDERING THE WRITTEN SUBMIS SIONS MADE BY THE APPELLANT DURING THE APPELLATE PROCEEDINGS. 3. THE APPELLANT CRAVES LEAVE TO AMEND, ALTER OR MO DIFY THE ABOVE GROUNDS OF APPEAL OR ADD A NEW GROUND OF APPEAL, AS DEEMED NEC ESSARY AT OR BEFORE THE TIME OF HEARING. ITA NO.5398/MUM/2011(A.Y. 2008-09) 2 2. THE ONLY ISSUE ARISE IN THE PRESENT APPEAL IS R EGARDING ADDITION OF RS.1,24,270/-. THE ASSESSEE IS ENGAGED IN THE ACT IVITY OF MAKING GOLD ORNAMENTS FROM 24 CARAT GOLD TO 18 CARAT GOLD THRO UGH JOB WORKERS. THE AO NOTICED THAT OUT OF 2433.75 GRAMS OF 24 CARAT GOLD THE ASSESSEE HAD OBTAINED 3245 GRAMS OF 18 CARAT GOLD ORNAMENTS. WHEN 24 CARAT GOLD IS CONVERTED INTO 18 CARAT GOLD THEN THERE WAS A DEFIC IENCY OF 141.25 GRAMS WHICH WAS VALUED AT RS. 1,24,270/-, WHICH HAS BEEN ADDED TO THE INCOME OF THE ASSESSEE. 3. THE ADDITION WAS AGITATED IN APPEAL FILED BEFO RE LD. CIT(A) AND IT WAS SUBMITTED THAT THERE WAS NO SHORTAGE AS SUCH AND DE FICIENCY HAS BEEN WRONGLY BEEN ARRIVED AT BY AO. FOLLOWING TABLE WAS SUBMITTED TO SHOW THAT IN RESPECT OF 2 ITEMS DATED 28/5/2007 THE ASSESSEE RECEIVED THE GOLD AS IT IS AND THE SAME WERE NOT CONVERTED INTO GOLD ORNAMENT S OF 18 CARAT. THUS ACTUALLY THERE WAS NO DEFICIENCY IN THE GOLD . DETAILS OF KARIGAR WISE STATEMENT OF 24 CT. GIVEN & 18 CT RECEIVED. DATE NAME OF KARIGAR 24 CT.GIVEN 18 CT RECD. % OF 2 4 CT. GOLD GIVEN FOR MAKING 18 CTS. GOLD ORNAMENTS. 23/04/2007 MIDDAY ANSA BAKAR 300 GMS. 388 GMS. 77.32 23/04/2007 PRASANTA R. SAMANTA 200 GMS. 259 GMS 77.22 24/04/2007 JHANTU MAITY 175 GMS 227 GMS 77.09 28/05/2007 PRASANTA R. SAMANTA 400 GMS 517 GMS 77.37 28/05/2007 JHANTU MAITY 300 GMS 338 GMS 77.32 28/05/2007 SANAT DAS 177 GMS 177 GMS 28/05/2007 SANAT DAS 123 GMS 123 GMS 12/06/2007 SUNIT BELEI 277 GMS 360 GMS 76.94 12/06/2007 BIKAS PURKAIT 500 GMS 646 GMS 77.4 12/06/2007 SUJIT BETEI 123 GMS 2575 GMS - 300 GMS 160 GMS 3245 GMS -300 GMS 76.88 2275 GMS ======== 2945 GMS ========= 77.25 ===== ITA NO.5398/MUM/2011(A.Y. 2008-09) 3 REFERRING TO THE ABOVE IT WAS SUBMITTED BY LD. AR THAT THE MATTER MAY BE RESTORED BACK TO THE FILE OF AO FOR VERIFICATION OF ABOVE TABLE. 4. ON THE OTHER HAND LD. DR RELIED UPON ORDER PASSE D BY THE LD. CIT(A). 5. WE HAVE HEARD BOTH THE PARTIES AND THEIR CONTENT IONS HAVE CAREFULLY BEEN CONSIDERED. AFTER HEARING BOTH THE PARTIES, A CCEPTING REQUEST OF LD. AR WE REMIT THIS ISSUE TO THE FILE OF AO FOR DENOVO CO NSIDERATION OF THE ISSUE INVOLVED IN THE PRESENT APPEAL. THE AO WILL GIVE R EASONABLE AND SUFFICIENT OPPORTUNITY OF HEARING TO THE ASSESSEE AND THEREAFT ER WILL RE-ADJUDICATE THE ISSUE AS PER PROVISIONS OF LAW. WE DIRECT ACCORDIN GLY. FOR STATISTICAL PURPOSES THE APPEAL FILED BY THE ASSESSEE IS CONSID ERED TO BE ALLOWED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 10 TH DAY OF OCT., 2012 SD/- SD/- (RAJENDRA ) (I.P.BANSAL) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED 10TH OCT., 2012. COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CITY CONCERNED 4. THE CIT(A)- CONCERNED 5. THE D.R A BENCH. (TRUE COPY) BY ORDER ASST. REGISTRAR, I TAT, MUMBAI BENCHES MUMBAI. VM.