SUMERMAL PUKHRAJ SHANKLESHA, KALYAN V. ITO 3(4), MUMBAI

ITA 7563/MUM/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 0149 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 23-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N HEMALATHA
• Assessee Lawyers: AJAY R SINGH
• Section: 143(3); 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH SMC, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER ITA NO.7563/M/2016 ASSESSMENT YEAR: 2011-12 M/S. SUMERMAL PUKHRAJ SHANKLESHA, PROP. OF M/S. M.M. SHANKLESHA JWELLERS, NARAYAN WADI, STATION ROAD, KALYAN (WEST)-421 301 PAN: AONPS9463C VS. INCOME TAX OFFICER 3(4), KALYAN (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI AJAY R. SINGH, A.R. REVENUE BY : MISS N. HEMALATHA, D.R. DATE OF HEARING : 31.07.2017 DATE OF PRONOUNCEMENT : 29.08.2017 O R D E R PER D.T. GARASIA, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 21.09.2016 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT Y EAR 2011-12. 2. THE SHORT FACTS OF THE CASE ARE THAT ASSESSEE IS IN BUSINESS OF GOLD AND SILVER ORNAMENTS. THE ASSESSEE IS DOING BUSINESS O F SALES AND PURCHASE OF GOLD AND SILVER AND FROM THE INFORMATION FILED NOT A SIN GLE BILL OF SALES AND PURCHASES ARE FROM ANY BOGUS DEALER OR FROM ANY NON GENUINE DEALER. THE ASSESSING OFFICER (HEREINAFTER REFERRED TO AS THE A O) HAS VERIFIED THE BOOKS OF ACCOUNTS AND FOUND THAT RETURN OF INCOME WAS FILED ON 28.09.2012. THE AO HAS PROCESSED THE RETURN UNDER SECTION 143(3) READ WITH SECTION 147 AND MADE THE ADDITION ON ACCOUNT OF RECASTING TRADE OF RS.28 ,07,892/-. THE AO HAS ITA NO.7563/M/2016 M/S. SUMERMAL PUKHRAJ SHANKLESHA 2 VERIFIED THE CLOSING AND OPENING STOCK OF THE ASSES SEE AND AO HAS MADE THE ADDITION ON ACCOUNT OF UNDERVALUATION OF CLOSING ST OCK BY OBSERVING AS UNDER: 14. IN VIEW OF THESE FACTS THE AO RE-COMPUTED THE VALUE OF CLOSING STOCK AS UNDER DESCRIPTION QUANTITY OF GOLD IN GRAMS VALUE IN RS. AVERAGE RATE PER GRAM OF GOLD OPENING STOCK 8643.000 95,93,730 RS. 1100 PURCHASE DURING THE YEAR 7515.200 1,31,11,310 RS. 1745 TOTAL 16158.200 2,27,05,040 RS. 1405.17 QUANTITY SOLD 7056.600 99,15,732 RS. 1405.17 CLOSING STOCK 9101.600 1,27,89,308 RS. 1405.17 15. THE AO THEREAFTER RE-CASTED THE TRADING AND PROFIT & LOSS ACCOUNT OF THE APPELLANT AND MADE THE ADDITION OF RS.28,07,892/- T O THE APPELLANT'S INCOME AS UNDER- PARTICULAR QUANTITY IN GRAMS VALUE / COST PARTICULAR QUANTITY IN GRAMS VALUE I COST OPENING 8643.000 95,93,730 SALES 7056.600 1,48,17,896 PURCHASE 7515.200 1,31,11,310 CLOSING STOCK 9101.600 1,27,89,308 GROSS PROFIT 16158.200 49,02,164 16158.200 THE ACTUAL PROFIT AS PER RE-CASTED VALUATION OF CLO SING STOCK RS. 49,02,164 LESS: THE ASSESSEE HAS SHOWN PROFIT AT RS. 20,94,27 2 DIFFERENCE IN GROSS PROFIT SHOWN RS.28, 07,892 3. THE SHOW CAUSE NOTICE WAS GIVEN AND AFTER REWORK ING OF OPENING AND CLOSING STOCK THE LD. CIT(A) HAS REWORKED THE ADDIT ION BY CALCULATING THE SAME AS UNDER: PARTICULARS RS. PARTICULARS RS. TO OPENING STOCK 95,93,730/- BY SALES 1,48,17,896/- TO PURCHASES 1,31,11,310/ - BY CLOSING STOCK 1,13,22,390/ - TO GROSS PROFIT 34,35,246/ - 2,61,40,286/- 2,61,40,286/- ACCORDING TO THE APPELLANT EVEN BY THIS METHOD THE ADDITION WORKS OUT TO RS.14,66,378/- ONLY. ITA NO.7563/M/2016 M/S. SUMERMAL PUKHRAJ SHANKLESHA 3 4. THE ASSESSEE IS IN APPEAL BEFORE ME. DURING THE COURSE OF HEARING, THE LD. A.R. SUBMITTED THAT THE ISSUE IN CONTROVERSY IS COVERED BY THE DECISION OF TRIBUNAL IN THE CASE OF ITO VS. KASTURI CONSTRUCTIO N (2012) 54 SOT 384. THE LD. A.R. SUBMITTED THAT ISSUE MAY BE RESTORED TO TH E FILE OF AO TO DECIDE IT AFRESH. 5. LD. D.R. HAS NO OBJECTION. 6. I, THEREFORE, RESTORE THE MATTER BACK TO THE FIL E OF AO TO DECIDE IT AFRESH AS PER THE DECISION. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29.08.2017. SD/- (D.T. GARASIA) JUDICIAL MEMB ER MUMBAI, DATED: 29.08.2017. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.