M/s. M. Kantilal Exports, Surat V. The ACIT., Cent.Circle-2, Surat

ITA 940/AHD/2008

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5938 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 07-02-2014
• Assessment Year: 2004-2005
• Appeal Filed On: 12-03-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: T P KRISHNA KUMAR
• Assessee Lawyers: ASHWIN PAREKH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER ITA NO.940/AHD/2008 A.YS. 2004-05 M/S. KANTILAL EXPORTS, AMBICA NIWAS, MOHAN-NI- CHAWL, VARACCHA ROAD, SURAT. PAN: AAAFM4325L VS ACIT, CENTRAL CIRCLE-2, SURAT. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI T.P. KRISHNA KUMAR, CIT-D.R., ASSESSEE(S) BY : SHRI ASHWIN PAREKH, AR / DATE OF HEARING : 07/02/2014 / DATE OF PRONOUNCEMENT: 29/04/2014 / O R D E R PER SHRI MUKUL KUMAR SHRAWAT, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE ARISING FR OM AN ORDER OF LEARNED CIT(A)-II, AHMEDABAD DATED 09.01.2008. THE GROUNDS RAISED ARE REPRODUCED BELOW: I. THE LEARNED CIT(A) HAS GRIEVOUSLY ERRED IN LAW A ND ON FACTS IN CONFIRMING THE ADDITION OF RS. 4,99,35,148/- ON ACC OUNT OF VALUATION OF CLOSING STOCK OF POLISHED DIAMONDS DISREGARDING THE FACTS OF INFERIOR QUALITY OF DIAMONDS IN STOCK AND SALES OF HIGHER QU ALITY OF DIAMONDS WHICH IS EVIDENT FROM WORKING OF COST OF SALES HIGH ER BY RS. 317.95 PER CTS. THAN AVERAGE MANUFACTURING COST. THE ADDITION OF RS. 4,99,35,148/- SHOULD BE DELETED. II. THE LEARNED CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS. 3,37,18,921/- ON ACC OUNT OF VALUATION OF CLOSING STOCK OF ROUGH DIAMONDS DISREGARDING THE FA CTS OF ACTUAL CONSUMPTION PER LOT SUPPORTED'' BY MANUFACTURING BI LLS / JANGADS AND THE DIAMONDS IN STOCK CONSUMED FOR MANUFACTURING PO LISHED DIAMOND IN ITA NO.940/AHD/2008 M/S. M. KANTILAL EXPORTS VS. ACIT, CENTRAL CIRCLE-2 , SURAT. A.Y.2004-05 - 2 - SUBSEQUENT YEAR AS PER PRODUCTION RECORDS. THE ADDI TION OF RS.3,37,18,921/- SHOULD BE DELETED. III. THE LEARNED CIT(A) HAS GRIEVOUSLY ERRED I N LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS. 11,95,547/- ON ACCOU NT OF VALUATION OF CLOSING STOCK OF REJECTION DIAMONDS DISREGARDING TH E FACTS OF VALUATION MADE AT COST. THE ADDITION OF RS. 11,95,547/- SHOUL D BE DELETED. 2. AT THE TIME OF HEARING, LEARNED AR HAS DRAWN OUR ATTENTION ON A LETTER DATED 10 TH OF JUNE, 2013, THROUGH WHICH THE APPELLANT HAD EXP RESSED TO WITHDRAW THIS APPEAL, RELEVANT PORTION EXTRACTED BELOW: DATE: 10.06.2013 TO, THE MEMBERS OF THE INCOME-TAX APPELLATE TRIBUNAL, AHMEDABAD. REG : M/S. M. KANTILAL EXPORTS 251, SHRI AMBIKA, OPP. RAJHANS POINT, VARACHHA MAIN ROAD, SURAT. APPEAL NO. : 940/AHD/2008 SUB : HEARING OF APPEAL AS ON 11.06.2013 BEFORE ' C ' BENCH. WITHDRAW THE APPEAL A.Y. : 2004/05 HON'BLE SIR, THE ASSESSING OFFICER HAS GIVEN SET OFF OF ADDITION MADE IN THIS YEAR FOR CLOSING STOCK OF POLISHED DIAMOND AS OPENI NG STOCK IN SUBSEQUENT YEAR. AS PER THE INSTRUCTION OF ASSESSEE , THIS APPEAL IS WITHDRAWN. KINDLY PERMIT THE WITHDRAWAL OF THIS APP EAL AND OBLIGE . 3. LEARNED AR HAS INFORMED THAT THE QUESTION OF VAL UATION OF CLOSING STOCK OF POLISHED DIAMOND/ROUGH DIAMOND/STOCK OF RE JECTION DIAMOND IS RECURRING FROM THE PAST YEARS, THEREFORE, THE CLOSI NG VALUE AS DETERMINED IN THE PAST SHALL DIRECTLY BE APPLIED AS THE OPENIN G VALUE OF THE CLOSING STOCK AND THEREUPON THE ASSESSEE SHALL GET THE REQU ISITE RELIEF. IN THE LIGHT ITA NO.940/AHD/2008 M/S. M. KANTILAL EXPORTS VS. ACIT, CENTRAL CIRCLE-2 , SURAT. A.Y.2004-05 - 3 - OF THE SUBMISSIONS OF LEARNED AR AS WELL AS CONSIDE RING THE LETTER AS REPRODUCED ABOVE THIS APPEAL OF THE ASSESSEE IS HER EBY DISMISSED AS WITHDRAWN. 4. ACCORDINGLY, THE APPEAL OF THE ASSESSEE IS DISMI SSED AS WITHDRAWN. SD/- SD/- (ANIL CHATURVEDI) ( MUKUL KR. SHRAWAT) ACCOUNTANT MEMBER JUD ICIAL MEMBER AHMEDABAD; DATED 29/04/2014 PRABHAT KR. KESARWANI, SR. P.S. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A)-III, AHMEDABAD 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE. / BY ORDER, / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD