BIDDLE SAWYER LTD, MUMBAI V. DDL CIT RG 6(1), MUMBAI

ITA 8855/MUM/2010

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3290 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 20-12-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B MUMBAI . . , / BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER /AND . , SHRI D.KARUNAKARA RAO, ACCOUNTANT MEMBER . / ITA NO.8855/MUM/2010 ! ! ! ! ' ' ' ' / ASSESSMENT YEAR 2006-07 M/S.BIDDLE SAWYER LIMITED, 252, GSK HOUSE, DR. A.B.ROAD, WORLI, MUMBAI - 400 030. ! ! ! ! / VS. THE ADDL. CIT, RANGE 6(1), AAYKAR BHAVAN, MK ROAD, MUMBAI - 400 020 # ./ $% ./ PAN/GIR NO. : AAACB2028C ( #& / APPELLANT ) .. ( '(#& / RESPONDENT ) #& ) / APPELLANT BY: MS. AARTI SATHE '(#& * ) / RESPONDENT BY : SHRI PARESH JOHRI ! * + / DATE OF HEARING : 03/07/2013 ,-' * + / DATE OF PRONOUNCEMENT : 03/07/2013 . / O R D E R PER I.P.BANSAL, J.M: THIS IS AN APPEAL FILED BY THE ASSESSEE. IT IS D IRECTED AGAINST THE ORDER PASSED BY LD. CIT(A)-14, MUMBAI DATED 03/09/2010 FO R ASSESSMENT YEAR 2006-07. GROUNDS OF APPEAL READ AS UNDER: I (A) THE LEARNED COMMISSIONER OF INCOME-TAX (APPE ALS) 14, MUMBAI [HEREINAFTER REFERRED TO AS THE CIT(A)} ERRED IN UPHOLDING THE A CTION OF THE ADDITIONAL COMMISSIONER OF INCOME-TAX, RANGE 6(1) (HEREINAFTER REFERRED TO AS THE AO) OF NOT ADJUSTING THE OPENING STOCK FOR THE ASSESSMENT YEAR 2006-07 BY RS.20,75,917, BEING ADDITION MADE TO THE CLOSING ST OCK ON ACCOUNT OF EXCISE DUTY . / ITA NO.8855/MUM/2010 ! ! ! ! ' ' ' ' / ASSESSMENT YEAR 2006-07 2 FOR THE ASSESSMENT YEAR 2005-06, VIDE ORDER UNDER S ECTION 143(3) DATED 27TH DECEMBER, 2007. (B) THE CIT(A) WHILE DOING SO ERRED IN STATING THAT THE AFOREMENTIONED ISSUE DID NOT ARISE OUT OF THE ORDER UNDER APPEAL. THE APPELLANTS SUBMIT THAT CIT(A) OUGHT TO HAVE APP RECIATED THE FACT THAT THE CLOSING STOCK FOR THE ASSESSMENT YEAR 2005-06 WOULD BE THE OPENING STOCK FOR THE YEAR UNDER APPEAL. (C) THE APPELLANTS FURTHER SUBMIT THAT CONSISTENT W ITH THE DEPARTMENTS STAND THE AO BE DIRECTED TO INCREASE THE VALUE OF OPENING STO CK FOR THE YEAR UNDER APPEAL TO THE EXTENT OF RS.20,75,917. THE APPELLANTS PRAY THAT THE AO BE DIRECTED SUITABL Y. 2. AT THE OUTSET IT WAS SUBMITTED BY LD. A.R THAT W HILE DECIDING THE ISSUE REGARDING ADDITION OF EXCISE DUTY IN THE VALUE OF C LOSING STOCK AN ADDITION OF RS.20,75,917/- WAS MADE IN RESPECT OF ASSESSMENT YE AR 2005-06. VIDE AFOREMENTIONED APPEAL FILED BY THE ASSESSEE, IT IS THE REQUEST OF THE ASSESSEE THAT THE VALUE ADOPTED BY THE AO ON CLOSING STOCK IN ASSESSMENT YEAR 2005- 06 SHOULD BE TAKEN AS VALUE OF OPENING STOCK IN ASS ESSMENT YEAR 2006-07. IT WAS FURTHER SUBMITTED THAT EARLIER SIMILAR ADDIT ION MADE BY THE AO IN RESPECT OF ASSESSMENT 2005-06 WAS SUBJECT MATTER OF APPEAL FILED BEFORE THE TRIBUNAL AND THE TIBUNAL VIDE ITS ORDER DATED 4/6/2010 IN I TA NO.3214/MUM/09 & 3459/MUM/09 HAS RESTORED BACK TO THE FILE OF AO WI TH THE FOLLOWING OBSERVATIONS: 3. AARTI SATHE, APPEARED ON BEHALF OF THE ASSESSEE AND SHRI SANJEEV JAIN LEARNED DR ON BEHALF OF THE REVENUE. LEARNED AR OF THE ASS ESSEE SUBMITTED THAT NO MODAVT CREDIT IS AVAILABLE WITH THE ASSESSEE IN EARLIER YE ARS AND CONSEQUENTLY NO ADJUSTMENT NEEDS TO BE MADE TO THE CLOSING STOCK AN D THERE IS NO QUESTION OF MAKING ADDITION TO THE OPENING STOCK. IN VIEW OF T HE SUBMISSION MADE BY THE LEARNED COUNSEL FOR ASSESSEE, WE SET ASIDE THE ORDE R OF THE CIT(APPEALS) ON THIS ISSUE AND REMAND THE MATTER TO THE FILE OF THE AO TO VERIFY THE RECORDS AND DECIDE THE ISSUE AS PER LAW. IN VIEW OF THE MATTER BEIN G REMITTED TO THE FILE OF THE AO, THE APPEAL FILED BY THE REVENUE BECOMES INFRUCTUOUS AN D IS ACCORDINGLY DISMISSED. SO FAR AS THE APPEAL OF THE ASSESSEE IS CONCERNED, IT IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS T REATED AS ALLOWED FOR STATISTICAL PURPOSES AND THE APPEAL OF THE REVENUE IS DISMISSED . . / ITA NO.8855/MUM/2010 ! ! ! ! ' ' ' ' / ASSESSMENT YEAR 2006-07 3 COPY OF AFOREMENTIONED ORDER WAS PLACED ON OUR RECO RD AND WAS ALSO GIVEN TO LD. DR. 3. LD. D.R SUBMITTED THAT FOR THIS YEAR ALSO THE MATTER IS REQUIRED TO BE SENT BACK TO AO FOR ADJUDICATION OF THE PRESENT IS SUE IN THE LIGHT OF THE VIEW TAKEN IN RESPECT OF ASSESSMENT YEAR 2005-06 BY THE AO IN PURSUANCE TO AFOREMENTIONED ORDER OF THE TRIBUNAL. SHE SUBMITT ED THAT A DIRECTION SHOULD BE GIVEN TO THE AO TO TAKE THE DETERMINED VALUE O F CLOSING STOCK IN RESPECT OF ASSESSMENT YEAR 2005-06 AS VALUE OF OPENING STOCK I N A.Y 2006-07. 4. LD. D.R DID NOT HAVE ANY OBJECTION ON SUCH REQ UEST OF THE LD. A.R. 5. IN THIS VIEW OF THE SITUATION, AFTER HEARING BOT H THE PARTIES, WE RESTORE THE ISSUE RAISED IN PRESENT APPEAL TO THE FILE OF A O WITH A DIRECTION TO TAKE VALUE OF OPENING STOCK OF THE PRESENT ASSESSMENT Y EAR AS PER VALUE OF CLOSING STOCK TO BE DETERMINED FOR ASSESSMENT YEAR 2005-06 IN PURSUANCE TO AFOREMENTIONED ORDER OF THE TRIBUNAL. WE DIRECT AC CORDINGLY. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS CONSIDERED TO BE ALLOWED FOR STATISTICAL PURPOSES IN THE MANNER AFORESAID. ORDER PRONOUNCED IN THE OPEN COURT ON 03/07/2013 . * ,-' / 0!1 03/07/2013 - * 2 3 SD/- SD/- ( . / D.KARUNAKARA RAO ) ( . . / I.P. BANSAL ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; 0! DATED 03/07/2013 . / ITA NO.8855/MUM/2010 ! ! ! ! ' ' ' ' / ASSESSMENT YEAR 2006-07 4 . . . . * ** * '+45 '+45 '+45 '+45 65'+ 65'+ 65'+ 65'+ / COPY OF THE ORDER FORWARDED TO : 1. #& / THE APPELLANT 2. '(#& / THE RESPONDENT. 3. 7 ( ) / THE CIT(A)- 4. 7 / CIT 5. 582 '+! , , / DR, ITAT, MUMBAI 6. 2 9 / GUARD FILE. .! .! .! .! / BY ORDER, (5+ '+ //TRUE COPY// : :: : / ; ; ; ; $ $ $ $ (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI . ! . ./ VM , SR. PS