Smt. Sangeeta Somani, Ujjain V. The DCIT Circle 2(1), Ujjain

ITA 577/IND/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6289 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2000-2001
• Appeal Filed On: 08-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Section: 133A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE (SINGLE MEMBER CASE) BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER I.T.A.NO.577/IND/2014 A.Y. : 2000-01 SMT. SANGEETA SOMANI DY. CIT, PROP. OF M.M. BROTHERS, VS. CIRCLE 2(1), UJJAIN 60, AMARSINGH MARG, UJJAIN APPELLANT RESPONDENT PAN NO. AFVPS2095B A PPELLANT S BY : SHRI PAWAN VED, ADV. RESPONDENT BY : SHRI R. A. VERMA, DR O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A), UJJAIN, DATED 10.06.2014 FOR THE ASSESSM ENT YEAR 2000-01. 2. GROUND NOS. 1 & 2 ARE COMMON. GROUND NO. 3 IS NOT PRESSED, HENCE, THE SAME IS DISMISSED. DATE OF HEARING : 15 .0 3 . 20 16 DATE OF PRONOUNCEMENT : 04 .0 4 . 201 6 SMT. SANGEETA SOMANI, UJJAIN VS. DY. CIT, CIRCLE 2( 1), UJJAIN I.T.A.NO. 577/IND/2014 A.Y. 2000-01 2 2 3. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE I S A PROPRIETOR OF M/S. M. M. BROTHERS INVOLVED IN THE B USINESS OF WHEAT AND KIRANA GOODS. SURVEY U/S 133A HAS BEEN C ARRIED OUT AT THE BUSINESS PREMISES ALONGWITH HER TWO SIST ER CONCERNS VIZ. M/S. MANGNIRAM MURLIDHAR ( R. F.) AND M/S. M.M. TRADERS. DURING THE COURSE OF SURVEY AT THE BU SINESS PREMISES OF THE ASSESSEE, THE TOTAL STOCK OF RS. 12 ,23,576/- WAS FOUND AND AS PER BOOKS OF ACCOUNT OF THE ASSESS EE, THE STOCK WAS RS. 5,26,637/-. THUS, THE EXCESS STOCK OF RS. 6,96,939/- WAS FOUND. THUS, THE ASSESSEE HAD SURREN DERED AN ADDITIONAL INCOME OF RS. 5,50,000/- FOR THE FINANCI AL YEAR 1999-2000 AND ACCEPTED TO PAY ADVANCE TAX THEREON. THE AO HAS MADE THE ADDITION OF RS. 5,46,939/-. 4. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. C IT(A) HAS CONFIRMED THE ADDITION OF RS. 4,00,000/-. 5. THE LD. AUTHORIZED REPRESENTATIVE SUBMITTED THAT DURING THE COURSE OF SURVEY, ACTUAL PHYSICAL STOCK WAS TAKEN AT M.R.P. AND FOR THE STOCK MAKING FOR CONSIDERING THE STOCK THE BASIS OF MRP WAS TAKEN. THE 25% REBATE SHOULD H AVE BEEN GIVEN. THE LD. AUTHORIZED REPRESENTATIVE ALSO SUBMI TTED THAT SMT. SANGEETA SOMANI, UJJAIN VS. DY. CIT, CIRCLE 2( 1), UJJAIN I.T.A.NO. 577/IND/2014 A.Y. 2000-01 3 3 THERE WAS SOME BILLS OF PURCHASE, WHICH WERE OMITTE D TO BE RECORDED UP TO THE DATE OF SURVEY AND THE ASSESSEE SUBMITTED THE COPY OF THE RELEVANT BOOKS WHICH WERE SUBMITTED , BUT NO CREDIT HAS BEEN GRANTED. 6. I HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PART IES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, I FIND THAT THE AO HAS MADE THE ADDITION ON ACCOUNT OF EXCESS S TOCK. THE ASSESSEE HAS SUBMITTED THE WRITTEN SUBMISSION BEFOR E THE SURVEY PARTY AND THE PHYSICAL STOCK DURING THE COUR SE OF SURVEY WAS TAKEN AT RS. 12,23,576/- AND AS PER THE BOOKS WAS RS. 5,26,637/-. THEREFORE, THE EXCESS STOCK OF RS. 6,96,939/- WAS MADE. THE GOODS WERE OF EXPIRY DATE AND NON-SAL EABLE GOODS AND THAT WAS RECOGNIZED BY THE SURVEY PARTY A ND AMOUNT OF RS. 1,46,939/- WAS DEBITED FROM THIS STOC K AND THE ASSESSEE HAS DECLARED RS. 5,50,000/- STOCK AND THE ASSESSEE HAS DECLARED RS. 1,50,000/- AS EXCESS STOCK. THEREF ORE, THE DIFFERENCE OF RS. 4 LAKHS WAS GIVEN. WE FIND THAT T HE VALUE OF THE STOCK SHOULD HAVE BEEN TAKEN AT RS. 3,54,894/- ON THE GROUND THAT THE MRP IS PRINTED MUCH HIGHER AND THE SURVEY PARTY HAS VALUED THE STOCK AT MRP. THEREFORE, THE V ALUE OF THE SMT. SANGEETA SOMANI, UJJAIN VS. DY. CIT, CIRCLE 2( 1), UJJAIN I.T.A.NO. 577/IND/2014 A.Y. 2000-01 4 4 STOCK MUST BE TAKEN AT NOT FOLDED RATE BUT IT MUST BE TAKEN AT RS. 3,05,894/- AND ADDITION SHOULD HAVE BEEN NOT AT RS. 4 LAKHS, BUT AT RS. 3,05,894/- ONLY. THE ASSESSEE HAS ALSO TAKEN THE CONTENTION REGARDING SHORTAGE OF STOCK BUT THAT HAS BEEN NOT PROVED BY THE ASSESSEE. THEREFORE, WE MODIFY TH E ORDER OF THE CIT(A) AND WE DIRECT THE AO TO CONFIRM THE ADDI TION OF RS. 3,05,894/- INSTEAD OF RS. 4 LAKHS CONFIRMED BY THE LD. CIT(A). THEREFORE, THE AO IS DIRECTED TO TAKE THE ADDITIONA L INCOME OF RS. 3,05,894/-, AS THE ASSESSEE HAS ALREADY DECLARE D RS, 1,50,000/-. THEREFORE, THE ADDITION MAY BE RESTRICT ED ACCORDINGLY. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. THIS ORDER HAS BEEN PRONOUNCED IN THE OP EN COURT ON 4 TH APRIL , 2016, SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 4 TH APRIL, 2016. CPU*