M/S. SANGHI FINANCE & INVESTMENT LTD.(NOW MERGED WITH SANGHI BROTHERS (I) LTD.,), Indore V. THE ACIT 3(1), Indore

ITA 635/IND/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5776 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 03-09-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOHD JAVED
• Assessee Lawyers: S N AGRAWAL
• Keywords: Opportunity of being heard; Revised return

Judgement Text

SANGHI FINANCE & INVESTMENT. LTD. ITA NO. 635/IND/2015 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JM & SHRI O.P. MEENA, AM ITA NO.635/IND/2015 A.Y.2005-06 M/S SANGHI FINANCE & INVESTMENT LIMITED (NOW MERGED WITH SANGHI BROTHERS(P)LTD. INDORE PAN AAECS 9257Q ::: APPELLANT VS ACIT 3(1) INDORE ::: RESPONDENT APPELLANT BY SHRI S.N. AGRAWAL & SHRI PANKAJ MOGRA RESPONDENT BY SHRI MOHD.JAVED DATE OF HEARING 2 .8.2016 DATE OF PRONOUNCEMENT 2 .8.2016 O R D E R PER SHRI D.T.GARASIA, JM THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A)-II, INDORE, DATED 30.4.2 015. SANGHI FINANCE & INVESTMENT. LTD. ITA NO. 635/IND/2015 2 2. THE ONLY GROUND TAKEN BY THE ASSESSEE IS THAT THE LEARNED CIT(A) ERRED IN CONFIRMING THE ADDITION AS MADE BY THE ASSESSING OFFICER OF RS.3,73,959/- ON ACCOUNT OF GROSS PROFIT ON THE ALLEGED TOTAL TURNOVER OF RS.2,24,94,68 4/- INSTEAD OF CORRECT TOTAL TURNOVER OF RS.2,05,56,066/- . 3. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE FIL ED THE ORIGINAL RETURN OF INCOME DECLARING TOTAL LOSS OF RS.53,08,000/- ON 31.10.2005. THERE WAS A CENTRAL EXCI SE ACTION AGAINST THE ASSESSEE ON 18.1.2005 WHEN A TRUCK OF UNACCOUNTED SALE WAS CAUGHT AND THE ASSESSEE PAID CENTRAL EXCISE DUTY ON UNACCOUNTED SALE OF RS.2,24,94,684/-. THEREAFTER THE ASSESSEE FILED REVI SED RETURN OF INCOME ON 16.1.2007 DECLARING TOTAL LOSS OF RS.38,00,482/-. THE CASE WAS SELECTED UNDER SCRUTINY. THE ASSESSEE WAS ASKED TO FURNISH DETAILED WORKING OF GROSS PROFIT OFFERED BY IT IN THE REVISED RETURN OF INCOM E. IN RESPONSE, THE ASSESSEE SUBMITTED THAT IT HAS ALREADY SANGHI FINANCE & INVESTMENT. LTD. ITA NO. 635/IND/2015 3 OFFERED GP ON SALES OF RS.39,65,265/- IN THE RETURN WHICH IS CORRECT AND NO DISALLOWANCE IS CALLED FOR. HOWEVER, THE ASSESSING OFFICER DID NOT ACCEPT THE SUBMISSIONS OF THE ASSESSEE AND MADE ADDITION OF RS.3,73,959/- ON ACCOUNT O F GROSS PROFIT ON THE ALLEGED TOTAL TURNOVER OF RS.2,24,94,684/-. ON APPEAL, THE LEARNED CIT(A) CONF IRMED THE ACTION OF THE ASSESSING OFFICER. NOW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TURNOVER OF THE ASSESSEE DURING TH E YEAR UNDER CONSIDERATION WAS RS.2,05,56,066/- WHEREAS THE ASSESSING OFFICER HAS WRONGLY TAKEN THE TURNOVER AT RS.2,24,94,684/- AND AS SUCH THE ADDITION HAS BEEN MADE BY THE ASSESSING OFFICER ON THE INCORRECT FIGURE OF TURNOVER. ON THE OTHER HAND, THE LEARNED DR SUPPORTED THE ORDE RS OF THE AUTHORITIES BELOW. SANGHI FINANCE & INVESTMENT. LTD. ITA NO. 635/IND/2015 4 5. HAVING HEARD BOTH THE SIDES, WE ARE OF THE VIEW THAT THAT IT IS SIMPLY A CASE OF VERIFICATION OF TOTAL TURNO VER. WE, THEREFORE, IN THE INTEREST OF JUSTICE AND FAIR PLAY, SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND RESTORE THE M ATTER TO THE FILE OF THE ASSESSING OFFICER WITH THE DIREC TION TO VERIFY THE CLAIM OF THE ASSESSEE AND THEREAFTER DETERM INE THE GROSS PROFIT ON THE CORRECT TURNOVER, AFTER AFFOR DING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE ORDER ACCORDINGLY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALL OWED FOR STATISTICAL PURPOSES. PRONOUNCED IN OPEN COURT ON 2 ND AUGUST, 2016 SD/- SD/- (O.P. MEENA) (D.T. G ARASIA) ACCOUNTANTMEMBER JUDICIAL MEMB ER 8 TH SEPTEMBER, 2016 DN/- SANGHI FINANCE & INVESTMENT. LTD. ITA NO. 635/IND/2015 5