SHIRPUR GOLD REFINERY LTD, MUMBAI V. DCIT CIR 9(3), MUMBAI

ITA 5431/MUM/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7249 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: 2011-2012
• Appeal Filed On: 06-09-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V VIDHNYADHAR
• Assessee Lawyers: B S SHARMA; DALPAT
• Keywords: Bad and doubtful debts; Corroborative evidences
• Section: 143(3); 142(1); 37

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'G' BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO. 5431/MUM/2016 (ASSESSMENT YEAR: 2011-12) M/S. SHIRPUR GOLD REFINERY LTD. 135, CONTINENTAL BLDG. DR. A.B. ROAD, WORLI MUMBAI 400018 VS. DCIT, CIRCLE 9(3) ROOM NO. 146 AAYAKAR BHAVAN, M.K. ROAD MUMBAI 400020 PAN AAACA4896K APPELLANT RESPONDENT APPELLANT BY: SHRI B.S. SHARMA & SHRI DALPAT RESPONDENT BY: SHRI V. VIDHNYADHAR DATE OF HEARING: 10.04.2018 DATE OF PRONOUNCEMENT: 26.04.2018 O R D E R PER RAJESH KUMAR, AM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE CIT(A)-21, MUMBAI DATED 07.06.2016 FOR A.Y. 2011-12 . 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF AP PEAL: - 1. THE HON'BLE COMMISSIONER OF INCOME TAX APPEAL 21, (HEREINAFTER REFERRED TO AS THE 'THE CIT(A)-21') ERRED IN LAW, O N FACTS AND UNDER THE CIRCUMSTANCES OF THE CASE, IN CONFIRMING DISALLOWANCE MADE BY THE LD ASSESSING OFFICER 9(3) (THE A.O.,) O F RS.53,43,830/- AS BAD DEBTS OR WRITE OFFS UNDER SEC TION 36(1)(VII), SECTION 36(2)(I) AND/OR SECTION 37 OF T HE INCOME TAX ACT 1961 (HEREINAFTER REFERRED TO AS 'THE ACT'). 2. THE CIT(A)-21 ERRED IN LAW, ON FACTS AND UNDER T HE CIRCUMSTANCES OF THE CASE IN CONFIRMING ADDITION BY THE LD A.O., OF RS.54,11,304/- ON THE GROUND THAT THE APPELLANT ERR ED IN TAKING INTERNATIONAL RATE IN VALUATION OF CLOSING INVENTOR Y, PURCHASED FROM MMTC-THE CHANNELIZED AGENCY, INSTEAD OF PREVAI LING DOMESTIC RATE AT THE YEAR END. 3. THE APPELLATE CRAVE LEAVE TO ADD, ALTER, MODIFY OR SUBMIT, RESUBMIT AFRESH ANY OR ALL THE GROUNDS OF APPEAL OR ANY ITA NO. 5431/MUM/2016 M/S. SHIRPUR GOLD REFINERY LTD. 2 SUPPORTING EVIDENCES OR AS MAY BE REQUIRED IN CONNE CTION WITH THE GROUNDS HEREIN OF APPEAL ON OR BEFORE HEARING O F THE SAME. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE C OMPANY, ENGAGED IN THE BUSINESS OF MANUFACTURING, REFINING AND TRADING IN GOLD AND SILVER, FILED ITS RETURN OF INCOME FOR A.Y. 2011-12 ON 05.09.2011 DECLARING TOTAL LOSS OF ` 32,56,62,070/-. THE CASE HAS BEEN SELECTED FOR SCRU TINY AND NOTICES UNDER SECTIONS 143(2) AND 142(1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT) WERE ISSUED. IN RESPONSE TO THE NOTICES, THE AUTHORISED REPRESENTATIVE OF THE ASSESSEE APPEARED FROM TIME T O TIME AND FURNISHED DETAILS AS CALLED FOR. THE ASSESSMENT HAS BEEN COMP LETED UNDER SECTION 143(3) OF THE ACT, ON 26.03.2014 DETERMINING THE TO TAL LOSS AT ` 31,49,06,926, INTER ALIA, MAKING ADDITIONS TOWARDS DISALLOWANCE OF BAD DEBTS CLAIMED BEING SUNDRY BALANCES WRITTEN OFF FOR ` 53,43,840/- AND DIFFERENCE IN VALUE OF CLOSING STOCK AT ` 54,11,304/-. 4. AGGRIEVED BY THE ASSESSMENT ORDER, ASSESSEE PREFER RED APPEAL BEFORE THE CIT(A). BEFORE THE CIT(A), THE ASSESSEE SUBMITT ED THAT IT HAS WRITTEN OFF SUNDRY BALANCES IN THE BALANCE SHEET IN RESPECT OF BOTH DEBITS AND CREDITS WHICH ARE IRRECOVERABLE FOR MORE THAN SIX YEARS AND THE NET RESULT OF WRITTEN OFF OF SUNDRY BALANCES HAS BEEN CONSIDERED AS MISCELLANEOUS INCOME. THE ASSESSEE FURTHER SUBMITTED THAT IT HAS WRITTEN BACK THE SUNDRY BALANCES APPEARING IN THE CREDIT SIDE OF THE BALANCE SHEET AMOUNTING TO ` 1,18,94,846/- AND SUNDRY BALANCES APPEARING IN THE DEBIT SIDE OF THE BALANCE SHEET AT ` 53,43,830/- AND THE NET RESULT OF ` 65,51016/- WAS OFFERED AS OTHER INCOME. THE AO, WHI LE ACCEPTING THE SUNDRY BALANCES WRITTEN OFF APPEARING IN THE CREDIT SIDE OF THE BALANCE SHEET DISALLOWED THE SUNDRY BALANCES APPEARING IN T HE DEBIT SIDE OF THE BALANCE SHEET ON THE GROUND THAT THE CONDITIONS PRE SCRIBED UNDER SECTION 36(1)(VII) R.W.S. 36(2) ARE NOT FULFILLED. IN SO FA R AS THE DIFFERENCE IN VALUE OF CLOSING STOCK IT WAS SUBMITTED THAT IT HAS PURCHASE D GOLD BY IMPORTING, OUT OF WHICH UNSOLD PORTION OF THE GOODS HAS BEEN VALUE D BY SUPPLIERS METHODOLOGY OF BILLING BY CONSIDERING THE INTERNATI ONAL PREVAILING MARKET RATE OF GOLD AS ON THE DATE OF VALUATION. HOWEVER, THE AO HAS ADOPTED THE ITA NO. 5431/MUM/2016 M/S. SHIRPUR GOLD REFINERY LTD. 3 COST OR MARKET WHICH RATE, WHICHEVER IS LESS, BY TA KING THE PREVAILING DOMESTIC MARKET RATE AS ON VALUATION DATE. SINCE TH E CLOSING STOCK OF GOLD CONSISTS OF GOODS PURCHASED FROM INTERNATIONAL MARK ET AS WELL AS GOODS PURCHASED FROM DOMESTIC MARKET, IT HAS VALUED THE C LOSING STOCK AT RESPECTIVE COSTS OR MARKET RATE WHICHEVER IS LESS, WHICH IS IN ACCORDANCE WITH ACCOUNTING STANDARED-2 ISSUED FOR VALUATION OF CLOSING STOCK. 5. THE CIT(A), AFTER CONSIDERING THE SUBMISSIONS OF TH E ASSESSEE, UPHELD THE ADDITIONS MADE BY THE AO TOWARDS DISALLO WANCE OF SUNDRY BALANCES WRITTEN OFF BY HOLDING THAT THE ASSESSEE F AILED TO FURNISH NECESSARY EVIDENCES TO PROVE THAT THE SUNDRY BALANC ES WRITTEN OFF ARE REALLY BAD DEBTS AND WHICH ARE COMING WITHIN THE PARAMETER S OF PROVISIONS OF SECTION 36(2) OF THE ACT. THE ASSESSEE EVEN FAILED TO FILE BASIC DETAILS IN RESPECT OF THE TRANSACTIONS TO PROVE THAT SUCH DEBT S ARE ARISEN OUT OF SALES MADE IN THE EARLIER PERIOD AND SUCH SALES HAS BEEN SUBJECTED TO TAX, WHICH IS THE PRECONDITION FOR ALLOWING BAD DEBTS CLAIMED UNDER SECTION 36(1) OF THE ACT. IN SO FAR AS VALUATION OF CLOSING STOCK I S CONCERNED THE CIT(A) OBSERVED THAT THE AO HAS CONSIDERED THE VALUE OF CL OSING STOCK ON THE BASIS OF COST OR MARKET RATE WHICHEVER IS LESS METH OD BY CONSIDERING THE COST OF IMPORTS AS PER THE BOOKS OF ACCOUNT OF THE ASSESSEE WHEREAS THE ASSESSEE HAD DETERMINED THE COST AS ON VALUATION DA TE BY ADOPTING THE METHODOLOGY OF BILLING BY THE SUPPLIES BY TAKING GJ EPC RATE ON WHICH THE APPLICABLE TAXES AND OTHER CESS HAVE BEEN ADDED TO ARRIVE AT THE COST TO COMPARE THE MARKET RATE WHICH IS NOT IN ACCORDANCE WITH THE PRESCRIBED METHOD FOR VALUATION OF CLOSING STOCK AS PER THE AC COUNTING STANDARD. THE CIT(A) FURTHER OBSERVED THAT THE COST PER KG. OF GO LD AS PER ASSESSEES BOOKS OF ACCOUNT WORKS OUT TO ` 2,08,385/- AND THE MARKET VALUE IN THE INDIAN LOCAL MARKET IS ` 21,18,000/- PER KG. THE ASSESSEE HAS ADOPTED THE COST PER KG. AT ` 20,81,859/- IN RESPECT OF CLOSING STOCK OF GOLD IMP ORTED THROUGH MMTC EVEN THOUGH THE COST WORKS OUT TO ` 21,08,385/-. THEREFORE THE AO WAS RIGHT IN REJECTING THE VALUATION OF CLOS ING STOCK BY THE ASSESSEE AND ADOPTING COST OR MARKET RATE AS PER THE INDIAN MARKET WHICHEVER IS ITA NO. 5431/MUM/2016 M/S. SHIRPUR GOLD REFINERY LTD. 4 LESS TO DETERMINE THE VALUE OF CLOSING STOCK. THE R ELEVANT PORTION OF THE CIT(A)S ORDER IS EXTRACTED AS UNDER: - 5.3 I HAVE CONSIDERED THE SUBMISSIONS CAREFULLY. IT IS SEEN THAT COST OF PURCHASES AS PER BOOKS IS RS.21,08,385/- PER KG (43,01,10,649 / 204 KG). AS PER THE VALUATION ADOPTED BY THE APPELL ANT, THE MARKET VALUE IS RS,20,81,859/- PER KG. IT HAS ADOPTED THE LOWER OF THE TWO VALUE AND THE VALUE OF THE INVENTORY OF 204 KG AT R S.20,81,859/- PER KG. GOLD BEING A COMMODITY FOR WHICH MARKET VALUE I S READILY ASCERTAINABLE, I FIND THAT THE AO WAS CORRECT IN CO NSIDERING THE MARKET VALUE TO BE THE LOCAL RATE FOR GOLD PREVAILING ON 3 1.03.2011. A CONTRARY .VALUATION BASED ON HYPOTHETICAL LANDED COST OF IMP ORTED GOLD CANNOT BE CONSIDERED TO BE ACCEPTABLE WHEN THERE IS LOCAL MARKET RATES AVAILABLE AT WHICH SUCH GOLD CAN BE SOLD OR PURCHAS ED . IT IS FURTHER SEEN THAT THE AO HAS NOTED THAT THE COST OF PURCHAS ES HAS BEEN COMPUTED AT RS.21,08,385/- PER KG AND THE MARKET VA LUE IN THE INDIAN LOCAL MARKET IS RS.2L,18,000/- PER KG. THE A O HAS ALSO NOTED THAT THE LOCAL PURCHASE OF GOLD BY THE APPELLANT HA S BEEN VALUED AT THE COST PRICE OR THE LOCAL MARKET VALUE WHICHEVER IS LOWER. HE HAS THEREFORE CONSIDERED THE VALUATION OF 204 KG OF GOL D STOCK IMPORTED THROUGH MMTC LTD. ON THE BASIS OF COST OF PURCHASE WHICH IS RS.21,08,385/- PER KG BEING LOWER THAN THE MARKET V ALUE OF RS.21,18,000/- IN THE LOCAL MARKET. HE HAS RIGHTLY REJECTED THE MARKET VALUE COMPUTED BY THE APPELLANT FOR THE GOLD IMPORT ED THROUGH MMTC LTD OF RS.20,81,859/- PER KG. IN THESE FACTS, THERE IS NO BASIS FOR INTERFERENCE IN THE ASSESSMENT ORDER AND GROUND OF APPEAL NO.2 IS DISMISSED . 6. THE FIRST ISSUE CAME UP FOR CONSIDERATION IN ASSES SEES APPEAL IS DISALLOWANCE OF SUNDRY BALANCES WRITTEN OFF AND CLA IMED AS BAD DEBTS UNDER SECTION 36(1)(VII) OF THE ACT. THE AO DISALLO WED BAD DEBT CLAIM ON THE GROUND THAT THE ASSESSEE FAILED TO PROVE BAD DE BT WRITTEN OFF IN THE BOOKS OF ACCOUNT ARE ARISEN OUT OF SALES MADE IN TH E EARLIER YEARS AND SAME HAS BEEN OFFERED FOR TAXATION. ACCORDING TO TH E AO, THE ASSESSEE HAS WRITTEN OFF CERTAIN BALANCES APPEARING IN THE BALAN CE SHEET UNDER THE HEAD LOANS AND ADVANCES WITHOUT ANY EVIDENCE TO PROVE THAT SUCH ADVANCES ARE ARISEN IN THE NORMAL COURSE OF BUSINESS. IT IS THE CONTENTION OF THE ASSESSEE THAT IT HAS WRITTEN OFF SUNDRY BALANCES AP PEARING IN THE BALANCE SHEET UNDER THE HEAD LOANS AND ADVANCES IRRECOVER ABLE IN CASH OR KIND WHICH ARE OUTSTANDING FOR MORE THAN SIX YEARS AND T HE CHANCES OF RECOVERY OF SUCH ADVANCES IS REMOTE. THE ASSESSEE FURTHER CO NTENDED THAT IT HAS WRITTEN OF SUNDRY BALANCES IN ITS BOOKS OF ACCOUNT AS IRRECOVERABLE. ITA NO. 5431/MUM/2016 M/S. SHIRPUR GOLD REFINERY LTD. 5 THEREFORE THE AO WAS INCORRECT IN DISALLOWING BAD D EBTS CLAIMED WHEN HE HAS ACCEPTED THE SUNDRY BALANCES WRITTEN OFF APPEAR ING IN CREDIT SIDE OF THE BALANCE SHEET. 7. WE HAVE HEARD BOTH THE PARTIES AND PURSED THE MATER IAL AVAILABLE ON RECORD. IT IS AN UNDISPUTED FACT THAT THE ASSESSEE HAS WRITTEN OFF SUNDRY BALANCES APPEARING IN DEBIT AS WELL AS CREDIT SIDE OF THE BALANCE SHEET UNDER VARIOUS HEADS WHICH ARE OUTSTANDING FOR MORE THAN SIX YEARS. THE AO HAS ACCEPTED THE SUNDRY BALANCES APPEARING IN TH E CREDIT SIDE OF THE BALANCE SHEET UNDER THE HEAD INCOME FROM OTHER SOU RCES AS MISCELLANEOUS INCOME. THE AO HAS DISPUTED THE SUNDR Y BALANCES APPEARING IN THE DEBIT SIDE OF THE BALANCE SHEET ON THE GROUND THAT THE SAID WRITE OFF IS NOT IN ACCORDANCE WITH THE PROVIS IONS OF SECTION 36(1)(VII) R.W.S. 36(2), AS THE ASSESSEE HAS FAILED TO PROVE T HAT SUCH DEBITS ARE ARISEN OUT OF THE SALES MADE IN THE EARLIER YEAR. 8. HAVING HEARD BOTH SIDES WE DO NOT FIND ANY MERIT IN THE FINDING OF THE AO FOR THE REASON THAT, WHEN THE AO HAS ACCEPTE D CREDIT SIDE OF THE BALANCE SHEET, THERE IS NO REASON FOR THE AO TO REJ ECT THE SUNDRY BALANCES WRITTEN OFF APPEARING IN THE DEBIT SIDE OF THE BALA NCE SHEET ONLY ON THE GROUND THAT THE ASSESSEE HAS FAILED TO FILE NECESSA RY EVIDENCE TO PROVE THAT SUCH DEBTS ARE ARISEN OUT OF THE SALES MADE IN THE PREVIOUS FINANCIAL YEAR. WE FURTHER OBSERVE THAT WHEN THE ASSESSEE HAS WRITT EN OFF DEBIT AS WELL AS CREDIT BALANCES, THE NET RESULT OF WHICH MAY BE DEB IT OR CREDIT, IT HAS TO BE TREATED EITHER AS INCOME OR EXPENSES. WE FURTHER OB SERVE THAT THE ASSESSEE HAS FILED CERTAIN EVIDENCES TO PROVE THAT SUCH ADVA NCES ARE OUTSTANDING FOR MORE THAN SIX YEARS AND ARE ARISEN OUT OF NORMAL CO URSE OF BUSINESS LIKE ADVANCES FOR EXPENSES AND OTHER ADVANCES WHICH ARE IRRECOVERABLE. THEREFORE, IN OUR OPINION THE AO WAS INCORRECT IN D ISALLOWING SUNDRY BALANCES WRITTEN OFF AND CLAIMED AS BAD DEBT UNDER SECTION 36(1)(VII) OF THE ACT. HENCE WE DIRECT THE AO TO DELETE THE ADDITIONS MADE TOWARDS SUNDRY BALANCES WRITTEN OFF. ITA NO. 5431/MUM/2016 M/S. SHIRPUR GOLD REFINERY LTD. 6 9. THE NEXT ISSUE CAME UP FOR OUR CONSIDERATION IS TH E ADDITIONS TOWARDS DIFFERENCE IN VALUATION OF CLOSING STOCK. T HE AO MADE ADDITION OF ` 54,11,304/- TOWARDS VALUE OF CLOSING STOCK ON THE G ROUND THAT THE ASSESSEE HAS NOT FOLLOWED PRESCRIBED METHOD OF VALU ATION OF CLOSING STOCK AS PER THE ACCOUNTING STANDARD, WHICH IS EVIDENT FR OM THE FACT THAT THE ASSESSEE HAS FOLLOWED TWO DIFFERENT MARKET RATES FO R CLOSING STOCK OF GOLD PROCURED FROM TWO SOURCES. ACCORDING TO THE AO, ASS ESSEE HAS ADOPTED A SEPARATE MARKET RATE FOR IMPORTED GOLD AND SEPARATE MARKET RATE FOR GOLD PURCHASED IN DOMESTIC MARKET. THE AO HAS ADOPTED CO ST OR MARKET RATE, WHICHEVER IS LESS, ON THE BASIS OF THE PREVAILING M ARKET RATE IN DOMESTIC MARKET AS ON VALUATION DATE AND ADOPTED THE COST OR MARKET RATE, WHICHEVER IS LESS, TO DETERMINE THE VALUE OF CLOSIN G STOCK FOR BOTH IMPORTED AS WELL AS DOMESTIC GOLD. IT IS THE CONTENTION OF T HE ASSESSEE THAT IT HAS FOLLOWED COST OR MARKET PRICE WHICHEVER IS LESS MET HOD FOR VALUING CLOSING STOCK. HOWEVER, ITS CLOSING STOCK CONSISTS OF IMPOR TED AS WELL AS LOCALLY PROCURED GOLD FOR WHICH IT HAS FOLLOWED DIFFERENT M ARKET RATES PREVAILING ON THE VALUATION DATE. THEREFORE, ITS VALUATION OF CLO SING STOCK IS IN ACCORDANCE WITH THE ACCOUNTING STANDARD ISSUED FOR VALUATION OF CLOSING STOCK. 10. HAVING HEARD BOTH THE SIDES AND CONSIDERING THE MAT ERIAL ON RECORD WE FIND THAT THE ASSESSEE HAS ADOPTED COST OR MARKE T RATE WHICHEVER IS LESS METHOD FOR VALUING CLOSING STOCK. FURTHER, FOR VALU ATION OF IMPORTED GOLD IT HAS CONSIDERED THE PREVAILING MARKET RATE AVAILABLE IN THE INTERNATIONAL MARKET AS ON VALUATION DATE AND THEN ADOPTED THAT C OST TO DETERMINE THE VALUE OF CLOSING STOCK. FOR VALUING THE CLOSING STO CK IN RESPECT OF GOODS PROCURED IN DOMESTIC MARKET IT HAS FOLLOWED COST OR MARKET RATE IN DOMESTIC MARKET AS ON VALUATION DATE. THERE IS NO D ISPUTE IN THE METHOD FOLLOWED BY THE ASSESSEE FOR VALUATION OF CLOSING S TOCK. THE DISPUTE IS WITH REGARD TO THE PREVAILING MARKET RATE ADOPTED BY THE ASSESSEE. ASSESSEE HAS ADOPTED TWO MARKET RATES FOR DOMESTIC AS WELL AS IM PORTED GOODS. THE AO HAS CONSIDERED THE PREVAILING MARKET RATE IN INDIAN MARKET AS ON VALUATION DATE AND THEN ADOPTED COST TO DETERMINE THE COST OR MARKET RATE WHICHEVER ITA NO. 5431/MUM/2016 M/S. SHIRPUR GOLD REFINERY LTD. 7 IS LESS FOR VALUING THE CLOSING STOCK. WE FIND THAT THERE IS NO ERROR IN THE METHOD FOLLOWED BY THE AO TO DETERMINE THE COST OR MARKET PRICE. FOR VALUATION OF CLOSING STOCK THE ASSESSEE HAS TO FOLL OW COST OR MARKET RATE WHICHEVER IS LESS AND SUCH MARKET RATE HAS TO BE DE TERMINED ON THE BASIS OF THE PREVAILING MARKET RATE IN INDIAN MARKET AS O N THE VALUATION DATE. IF THE ASSESSEE HAS CONSIDERED THE PREVAILING RATE IN INDIAN MARKET TO ARRIVE AT COST OR MARKET RATE WHICHEVER IS LESS, THEN THER E IS NO REASON FOR THE AO TO DEVIATE FROM THE SAID METHOD. BUT, THE FACT REMA INS THAT AS PER THE FINDING OF THE AO THE ASSESSEE HAS DETERMINED A DIF FERENT MARKET RATE BY ADOPTING GJEPC RATE TO ARRIVE AT MARKET RATE WHICH IN OUR OPINION IS NOT IN ACCORDANCE WITH THE PRESCRIBED METHOD FOR VALUATION OF CLOSING STOCK. THEREFORE WE SET ASIDE THE ISSUE TO THE FILE OF THE AO AND DIRECT HIM TO DETERMINE THE VALUE OF CLOSING STOCK BY ADOPTING TH E COST OR MARKET RATE WHICHEVER IS LESS METHOD AS PRESCRIBED UNDER ACCOUN TING STANDARD-2 FOR VALUATION OF CLOSING STOCK. IF THE AO FINDS THE RAT E ADOPTED BY THE ASSESSEE IS IN ACCORDANCE WITH AS-2, THEN THE AO IS DIRECTED TO DELETE THE ADDITION MADE TOWARDS DIFFERENCE IN VALUATION OF CLOSING STO CK. IF THE ASSESSEE HAS ADOPTED PREVAILING MARKET RATE IN THE INTERNATIONAL MARKET AS ON THE VALUATION DATE FOR VALUING THE CLOSING STOCK AND CO MPARE WITH THAT COST, THEN THE AO IS DIRECTED TO ASCERTAIN THE COST AS PE R THE BOOKS OF ACCOUNT OF THE ASSESSEE THEN COMPARE AND THE PREVAILING MARKET RATE IN INDIAN MARKET AS ON DATE OF VALUATION TO ARRIVE AT THE COS T OR MARKET RATE WHICHEVER IS LESS. ACCORDINGLY THE GROUND RAISED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 11. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH APRIL, 2018. SD/ - SD/ - (SAKTIJIT DEY) (RAJESH KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 26 TH APRIL, 2018 ITA NO. 5431/MUM/2016 M/S. SHIRPUR GOLD REFINERY LTD. 8 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -21, MUMBAI 4. THE PR. CIT - 13, MUMBAI 5. THE DR, G BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.