ACIT, Mohali V. M/s Mount Shivalik Breweries Ltd., Mohali

ITA 796/CHANDI/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64003 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2012
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 17-10-2012
• Assessment Year: 2009-2010
• Appeal Filed On: 03-08-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: N K SAINI
• Section: 143(3)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B, CHANDIGARH BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 796/CHD/2012 (ASSESSMENT YEAR : 2009-10) THE A.C.I.T., VS. M/S MOUNT SHIVALIK BREWERIES LTD., CIRCLE 6(1), MOHAN GRAM, PO BHANKARPUR, MOHALI. MOHALI. PAN: AAACM9806D (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI N.K. SAINI, DR RESPONDENT BY : SHRI TEJ MOHAN SINGH DATE OF HEARING : 18.10.2012 DATE OF PRONOUNCEMENT : 31.10.2012 O R D E R PER SUSHMA CHOWLA, J.M, : THE APPEAL FILED BY THE REVENUE IS AGAINST THE ORDE R OF THE COMMISSIONER OF INCOME-TAX (APPEALS), CHANDIGARH DA TED 14.05.2012 RELATING TO ASSESSMENT YEAR 2009-10 AGAINST THE ORD ER PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHOR T THE ACT). 2. THE ONLY GROUND OF APPEAL RAISED BY THE REVENUE READS AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) HAS ERRED IN ALLOWING APPEAL OF THE ASSESSEE WITHOUT APPRECIATING THE FACTS OF THE CASE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.10,00,000/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF SUPPRESSION OF SALE VALUE OF WASTAGE AND SCRAP. 2 3. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL BY T HE REVENUE IS AGAINST THE ORDER OF THE CIT (APPEALS) IN DELETING THE ADDITION OF RS.10 LACS ON ACCOUNT OF WASTAGE AND SCRAP. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E HAS SHOWN INCOME FROM WASTAGE AND SCRAP AT RS.58,10,935/-. THE PLEA OF THE ASSESSEE WAS THAT IT WAS SELLING THE SAID SCRAP ONLY WHEN THERE WERE LARGER QUANTITIES. HOWEVER, NO DETAILS WERE BEING MAINTAINED BY THE AS SESSEE IN RESPECT OF THE SAID SALE OF WASTAGE AND SCRAP. THE ASSESSING OFFICER IN ORDER TO PLUG ANY LEAKAGE MADE AN ADDITION OF RS.10 LACS ON THIS ACCOUNT. 5. THE CIT (APPEALS) DELETED THE SAID ADHOC ADDITIO N THERE BEING NO REASONABLE BASIS FOR THE SAID ADHOC ADDITION. 6. THE REVENUE IS IN APPEAL AGAINST THE SAID DELETI ON OF ADDITION OF RS.10 LACS. SHRI TEJ MOHAN SINGH APPEARED FOR THE ASSESSEE AND SHRI N.K.SAIN PUT IN APPEARANCE ON BEHALF OF THE REVENUE AND PUT FORWARD THEIR CONTENTIONS. 7. THE LEARNED A.R. FOR THE ASSESSEE FAIRLY ADMITTE D THAT NO DETAILS WERE BEING MAINTAINED, THOUGH STRESSED THAT THE ADD ITION MADE BY THE ASSESSING OFFICER WAS ADHOC. HOWEVER, THE LEARNED A.R. FOR THE ASSESSEE FAIRLY AGREED TO THE ADDITION OF RS.1 LAC IN THIS REGARD. 8. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. IN THE TOTALITY OF THE FACTS AND CIRCUMSTANCES OF THE CASE WHERE THE ASSESSEE HAS FAILED TO MAINTAIN THE RECORDS OF SALE OF WASTAGE A ND SCRAP, WE ARE OF THE VIEW THAT THE LEAKAGE ON THIS ACCOUNT CANNOT BE RUL ED OUT. IN VIEW THEREOF, WE DIRECT THE ASSESSING OFFICER TO MAKE TH E ADDITION OF RS.1 LAC 3 ON THE SAID ACCOUNT. THUS THE ORDER OF THE CIT (AP PEALS) IS PARTLY REVERSED. THE GROUND OF APPEAL RAISED BY THE REVEN UE IS PARTLY ALLOWED. 9. IN THE RESULT, THE APPEAL OF THE REVENUE IS PART LY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST DAY OF OCTOBER, 2012. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 31 ST OCTOBER, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH