DCIT, Ambala V. M/s Micro Instruments Company, Ambala Cantt.

ITA 858/CHANDI/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68547 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-12-2013
• Assessment Year: 2010-2011
• Appeal Filed On: 22-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Gross profit estimation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES ACHANDIGARH BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 858/CHD/2013 ASSESSMENT YEAR:2010-11 THE DY. COMMISSIONER OF VS M/S MICRO INSTRUM ENTS COMPANY, INCOME TAX, # 8,INDUSTRIAL AREA, CIRCLE, AMBALA CANTT. AMBALA. PAN NO. AAOFM8899H (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH RESPONDENT BY : NONE DATE OF HEARING : 24.10.2013 DATE OF PRONOUNCEMENT : 31.10.2013 O R D E R PER SUSHMA CHOWLA, JM THE REVENUE HAS FILED THE APPEAL AGAINST THE ORDER OF CIT(A), DATED 24.06.2013 RELATING TO ASSESSMENT YEAR 2010-11 AGAI NST THE ORDER PASSED UNDER SECTION 143(3) OF THE INCOME-TAX ACT, 1961 ( 'THE ACT' FOR SHORT). 2. THE REVENUE HAS RAISED FOLLOWING GROUNDS OF APPE AL: 1. THE LD. CIT(A) HAS ERRED ON THE FACTS AND CIRCU MSTANCES OF THE CASE BY DELETING THE ADDITION OF RS. 3,62, 18,945/- MADE BY THE AO AFTER INVOKING THE PROVISIONS OF SECTION 145(3) OF THE I.T. ACT WHILE IGNORING THE FACTS THAT THE ASSESSEE DID NOT MAINTA IN INVENTORY OF OPENING AND CLOSING STOCK AND STOCK REGISTER. 2. IT IS PRAYED THAT THE ORDER OF THE LD. CIT (APPE AL) BE SET-ASIDE AND THAT OF THE A.O. BE RESTORED. 3. THE APPELLANT CRAVES LEAVE TO ADD OR AMEND THE G ROUNDS OF APPEAL BEFORE THE APPEAL IS HEARD AND DISPOSED OFF. 2 3. THE ONLY ISSUE ARISING IN THE PRESENT APPEAL FILED BY THE REVENUE IS AGAINST DELETION OF ADDITION OF RS. 3,62,18,945/ - MADE BY THE ASSESSING OFFICER AFTER INVOKING THE PROVISIONS OF SECTION 14 5(3) OF THE ACT AND IGNORING THE FACTS THAT THE ASSESSEE DID NOT MAINTA IN INVENTORY OF OPENING AND CLOSING STOCK AND STOCK REGISTER. 4. DESPITE SERVICE OF NOTICE, NONE APPEARED ON BEHA LF OF THE ASSESSEE. HOWEVER, WE FIND THAT ISSUE IS SQUARELY COVERED BY THE DECISION OF THE CHANDIGARH BENCH OF THE TRIBUNAL IN ITA NO. 420/CHD /2011 FOR ASSESSMENT YEAR 2008-09 IN ASSESSEE'S OWN CASE. TH E CIT(APPEALS) HAD IN TURN PLACED RELIANCE ON THE ORDER OF THE CIT(APP EALS) IN THE EARLIER YEAR I.E. ASSESSMENT YEAR 2008-09. 5. THE LD. DR FOR THE REVENUE PLACED RELIANCE ON TH E ORDER OF THE ASSESSING OFFICER. 6. WE HAVE CONSIDERED THE SUBMISSIONS OF LD. DR FOR THE REVENUE AND PERUSED THE RECORD. THE ISSUE IN GROUND NO. 1 IS A GAINST THE DELETION OF ADDITION OF RS. 3,62,18,945/- BY CIT(APPEALS) BY IN VOKING THE PROVISIONS OF SECTION 145(3) OF THE ACT. THE ASSESSING OFFICER HAD MADE THE ADDITION ON ACCOUNT OF LOW GROSS PROFIT RATE AND AL SO IN THE ABSENCE OF THE OPENING AND CLOSING STOCK INVENTORY. THE BOOKS OF ACCOUNT PRODUCED BY THE ASSESSEE WERE REJECTED UNDER SECTION 145(3) OF THE ACT. THE ASSESSING OFFICER ACKNOWLEDGED THAT THE TRIBUNAL I N ASSESSEE'S OWN CASE DELETED THE AFORESAID ADDITION BUT AS THE DEPA RTMENT HAS FILED AN APPEAL BEFORE THE HON'BLE PUNJAB & HARYANA HIGH COU RT ON THE ISSUE WHICH WAS PENDING. THE CIT(APPEALS) ACKNOWLEDGED T HAT THERE WAS NO NEW FACTS AND ALLOWED THE CLAIM OF THE ASSESSEE IN VIEW OF THE RATIO LAID DOWN BY THE TRIBUNAL IN EARLIER YEARS. 3 7. WE FIND THAT THE ISSUE RAISED BY THE REVENUE IS COVERED BY THE DECISION OF THE TRIBUNAL IN ASSESSEE'S OWN IN ITA NO. 420/CHD/2011 A.Y. 2008-09 VIDE ORDER DATED 27.07.2011 AND FOLLOW ING THE SAME PARITY OF REASONING, WE DISMISS THE GROUND OF APPEAL RAISE D BY THE REVENUE. 8. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 31 ST OCTOBER, 2013. SD/- SD/- (T.R.SOOD) (SUSHMA CHOW LA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 31 ST OCTOBER,2013 POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH