Meena Devi Jaiswal, Faizabad V. Income Tax Officer-1, Faizabad

ITA 714/LKW/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0722 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 30-06-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 21-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PINKI MAHAWAR
• Assessee Lawyers: M P MISHRA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO. 71 4 /LKW/201 3 ASSESSMENT YEAR:200 7 20 08 MEENA DEVI JAISWAL , PROP. M/S VAISHNAV RICE UDYOG, BARUN BAZAR, MILKIPUR, FAIZABAD PAN:A JTPD9530A V S . INCOME TAX OFFICER 1, FAIZABAD (APPELLANT) (RESPONDENT) APPELLANT BY SHRI M. P. MISHRA, ADVOCATE RESPONDENT BY SMT. PINKI MAHAWAR, SR. DR DATE OF HEARING 30/06/2015 DATE OF PRONOUNCEMENT 2 4 /07/2015 O R D E R PER A. K. GARODIA, A.M. T HIS IS ASSESSEE S APPEAL DIRECTED AGAINST THE ORDER OF LEARNED CIT (A) I LUCKNOW DATED 29 .0 7 .201 3 FOR A.Y. 200 7 20 08 . 2. THE ASSESSEE HAS RAISED 3 GROUNDS BUT THE ONLY GRIEVANCE IS FOR CONFIRMING OF ADDITION OF RS. 200 , 090 / - MADE BY THE A.O. FOR ALLEGED UNDER VALUATION OF CLOSING STOCK. 3 . LEARNED AR OF THE ASSESSEE REITERATED THE SAME CONTENTIONS WHICH WERE RAISED BEFORE THE LOWER AUTHORITIES. LEAR NED DR OF THE REVENUE SUPPORTED THE ORDER S OF THE LOWER AUTHORITIES . 4 . WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT THE ADDITION WAS MADE BY THE A.O. BY VALUING THE CLOSING STOCK AT AVERAGE SELLING PRICE DURING THE YEAR AT RS. 1057 PER QUINTAL AND THE SAME WAS VALUED BY THE ASSESSEE AT RS. 900 PER QUINTAL. THIS WAS THE CLAIM OF THE ASSESSEE SINCE BEGINNING THAT FIRST GR ADE RICE IS SOLD TO GOVERNMENT DEPARTMENT AND AVERAGE SELLING PRICE OF RS. 1057 PER QUINTAL IS FOR THAT RICE BUT THE RICE LYING IN CLOSING 2 STOCK WAS SECOND GRADE BROKEN RICE AND HENCE , NO ADDITION IS JUSTIFIED . A S PER SALE CHART FOR MARCH 2007 AVAILABLE ON PAGE 2 OF WRITTEN SUBMISSIONS AND PAGE 20 OF THE PAPER BOOK , SALE WAS AT RS. 1057.20 PER QUINTAL TO S.R.O. FAIZABAD AND ONLY ONE SALE IS THERE TO A PRIVATE PARTY AND IT WAS ON 09.03.2007 AT RS. 800 PER QUINTAL. RELEVANT SALE BILL IS AVAILABLE ON PAGE 21 O F THE PAPER BOOK. THIS CONTENTION CANNOT BE BRUSHED ASIDE AND THE SECOND GRADE STOCK CANNOT BE VALUED AT THE PRICE OF FIRST GRADE STOCK. WE, THEREFORE, HOLD THAT IN THE FACTS OF THE PRESENT CASE, THIS ADDITION IS NOT JUSTIFIED. WE DELETE THE SAME. 5 . IN T HE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED . (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 4 /0 7 /201 5 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR