Shri Bharatkumar Chimanlal Shah, Ahmedabad V. The ACIT.,Range-2, Ahmedabad

ITA 783/AHD/2013

• Counselvise Citation: 78320514 RSA 2013
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 29-08-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 18-03-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K C MATHEWS
• Assessee Lawyers: DILIP M SHAH

Judgement Text

, , , , D, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, D BENCH . .. . . .. . , !' !' !' !', , , , #$ #$ #$ #$ # ## #. .. .% %% % . .. .&'( &'( &'( &'(, , , , %) * %) * %) * %) * % ' % ' % ' % ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND A. K. GARODIA, ACCOUNTANT MEMBER) ITA NO.783/AHD/2013 [ASSTT.YEAR : 2008-2009] BHARATKUMAR CHIMANLAL SHAH PROP. OF KUMAR STEEL (INDIA) 607/2, SHRI MAHAVIR CLOTH MARKET 1 ST FLOOR, STATION ROAD, KALUPUR AHMEDABAD 380 002. PAN : AACFM 5407 H /VS. ACIT, RANGE-2 AHMEDABAD. ( (( (,- ,- ,- ,- / APPELLANT) ( (( (./,- ./,- ./,- ./,- / RESPONDENT) 01 2 3 %/ ASSESSEE BY : SHRI DILIP M. SHAH * 2 3 %/ REVENUE BY : SHRI K.C. MATHEWS, SR.DR 5 2 16)/ DATE OF HEARING : 29 TH AUGUST, 2013 7&8 2 16)/ DATE OF PRONOUNCEMENT : 03-09-2013 %9 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME-TAX (APPEALS)- 6, AHMEDABAD DATED 8.1.2013 FOR THE ASSESSMENT YEA R 2008-2009. 2. THE ONLY GROUND OF THE APPEAL IS REGARDING THE A DDITION OF RS.7,15,020/- ON ACCOUNT OF ESTIMATED SALE OF OIL, BY THE AO AND SUSTAINED BY THE LEARNED CIT(A). ITA NO.783/AHD/2013 -2- 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT ENTIRE OIL INCLUDING DIESEL WAS CONSUMED IN THE PROCESS OF SHI P BREAKING DURING THE PERIOD, WHEN THE SHIP WAS STRANDED IN THE OPEN SEA, AND THEREFORE THE ADDITION HAS BEEN MADE PURELY ON IMAGINATION. HE S UBMITTED THAT THE GP ON SALE OUTSIDE THE BOOKS HAS ALREADY BEEN ADDED SE PARATELY, AND THEREFORE THIS ADDITION ON ACCOUNT OF VALUE OF OIL AT RS.7.15 LAKHS AMOUNTS TO DOUBLE ADDITION. THE LEARNED DR HAS OPPOSED THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. HE SUBMITTED THA T THE SALE OF OIL WAS NOT REFLECTED IN THE BOOKS OF ACCOUNTS, AND THE VALUE O F OIL OF RS.7.15 LAKHS WAS ASSESSED BY THE CUSTOMS AND EXCISE DEPARTMENT, AND THEREFORE, THE ADDITION WAS RIGHTLY MADE BY THE REVENUE. HE SUBMI TTED THAT THE GP ADDITION ON SALE OUTSIDE THE BOOKS WAS ALTOGETHER A SEPARATE ISSUE, AND THEREFORE, IT IS NOT A CASE OF DOUBLE DEDUCTION. H E REFERRED TO THE RELEVANT PARAS OF THE ORDERS OF THE AO AND THE CIT(A) IN SUP PORT OF THE CASE OF THE REVENUE. HE RELIED ON THE ORDERS OF THE AO AND THE CIT(A). 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE AO AND THE CIT(A). WE FIND THAT ALTHOUGH THE E XCISE AND CUSTOM DEPARTMENT HAS ASSESSED THE VALUE OF OIL AT RS.7.15 LAKHS, BUT IT IS ALSO A FACT THAT SOME OIL IS BURNT AND OR UTILISED WHILE T HE SHIP IS STRANDED IN HIGH-SEA DURING THE COURSE OF SHIP BREAKING PROCESS . THE BUSINESS OF THE ASSESSEE OF SHIP BREAKING IS A PECULIAR TYPE OF BUS INESS, IN WHICH FOOLPROOF ACCOUNT OF THE RESIDUARY OIL IN THE OIL T ANK OF THE SHIP COULD NOT BE QUANTIFIED ON DAILY BASIS, AND A FULL-PROOF ACCO UNT MAY NOT BE POSSIBLE IN THE LINE OF TRADE WITH REGARD TO RESIDUARY OIL I N THE SHIP. IN THESE CIRCUMSTANCES, WHILE ACCEPTING EXPLANATION OF THE A SSESSEE PARTLY, WE ARE OF THE VIEW THAT ENDS OF JUSTICE SHALL BE MET, IF A DDITION ON ACCOUNT OF RESIDUARY OIL NOT REFLECTED IN THE BOOKS OF ACCOUNT S, IS SUSTAINED BY WAY OF ITA NO.783/AHD/2013 -3- ESTIMATE AT RS.3,00,000/- (RUPEES THREE LAKHS ONLY) AGAINST RS.7,15,020/- SUSTAINED BY THE LEARNED CIT(A), AND ACCORDINGLY, THE GROUND OF THE APPEAL OF THE ASSESSEE IS PARTLY ALLO WED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( # ## #. .. .% %% % . .. .&'( &'( &'( &'( /A.K. GARODIA) %) * /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT VK* C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD