Shri Kiritbhai N. Patel, Ahmedabad V. The Income Tax Officer, Ward-6(4), Ahmedabad

ITA 959/AHD/2014

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 6394 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 15-06-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 04-04-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LALIT P JAIN
• Assessee Lawyers: M K PATEL
• Keywords: Unexplained investment; Cost of acquisition; Corroborative evidences
• Section: 143(3); 133(6); 201; 143(2); 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER SHRI KIRITBHAI N. PATEL PROP. KARNAVATI ENGINEERING WORKS, PLOT NO. 619/A, PHASE - IV VATVA, GIDC, AHMEDABAD PAN: AENPP8130R (APPELLANT) VS THE IT O , WARD 6(4) , AHMEDABAD (RESPONDENT) REVENUE BY : S H RI LALIT P. JAIN , SR. D . R. ASSESSEE BY: SHRI M.K. PATEL, A.R. DATE OF HEARING : 10 - 12 - 2 018 DATE OF PRONOUNCEMENT : 14 - 02 - 2 019 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT M EMBER : - THIS ASSESSEE S APPEAL FOR A.Y. 2010 - 11 , ARI SES FROM ORDER OF THE CIT(A) - XVI, AHMEDABAD DATED 06 - 03 - 2 014 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEA L: - 1. THE LEARNED A.O. AND CIT (APPEAL) HAVE ERRED IN NOT CONSIDERING THAT WHEN THE BOOKS OF ACCOUNT ARE REJECTED, NO AMOUNT CAN BE ADDED OF INDIVIDUAL ITEMS AS HAS BEEN MADE BY THE LEARNED A.O. 2. THE LEARNED A.O. AND CLT(APPEAL) HAVE ERRED IN MAKING AND CONFIRMING THE ADDITION OF RS. (14,12,064 - 2,80,800)= 11,31,264/ - ON ACCOUNT OF ALLEGED UNDER VALUATION OF CLOSING STOCK U/S I T A NO . 959 / A HD/20 14 A SS ESSMENT YEAR 2010 - 11 I.T.A NO. 959 /AHD/20 14 A.Y. 2010 - 11 PAGE NO SHRI KIRITBHAI N. PATEL VS. IT O ONTO THE MATERIAL ON RECORD 2 145A DISREGARDING THE SUBMISSIONS MADE VIZ. (A) METHOD OF ACCOUNTING APPLIED CONSISTENTLY (B) IF ADDITION MADE, EFFECT OF SECTI ON 145A SHOULD BE GIVEN IN THE OPENING STOCK PURCHASES AND SALES AND CONSEQUENTLY ADDITION WILL BE NIL 3. THE LEARNED A.O. AND CIT(APPEAL) HAVE ERRED IN MAKING AND CONFIRMING THE ADDITION OF (6,93,924 - 28,444/ - ) R = 6,65,480/ - ON ACCOUNT OF UNEXPLAINED PURC HASE OF RAW MATERIAL DISREGARDING THE SUBMISSION OF THE ASSESSEE. 4. (A) THE LEARNED A.O. AND CIT (APPEALS) HAVE ERRED IN MAKING ADDITION OF RS. 3,36,727/ - AND CIT (A) IN ENHANCING THE ADDITION BY RS. 2,03,708/ - ON ACCOUNT OF DIFFERENCE IN CREDITOR'S A CCOUNT OF ONE M/S. ROYAL SEALS PVT. LTD. DISREGARDING THE SUBMISSIONS MATTE BY THE ASSESSEE THAT THERE IS NO DIFFERENCE IN THE ACCOUNT OF THE CREDITOR VIS - VIS TRANSACTIONS IN CURRENT YEAR EXCEPT THE SMALL AMOUNT OF KASAR AND HENCE NO ADDITION CAN BE M ADE I N CURRENT YEAR. (B) THE LEARNED A.O. AND CIT(APPEAL) HAVE ERRED IN NOT CONSIDERING THAT THE DISCREPANCY IN THE FIGURES ARE PERTAINING TO OPENING BALANCE AND HENCE, NO EFFECT OF THE SAME CAN BE MADE IN THE YEAR UNDER ASSESSMENT AS NO DISCREPANCY IS SEEN IN THE YEAR UNDER ASSESSMENT. 5. THE HON. CIT(APPEAL) HAS E RRED IN ISSUING NOTICE U/S 271(1 )(C) ON ACCOUNT OF ENHANCEMENT OF INCOME OF RS. 2,03,708/ - BEING DISCREPANCY IN ONE CREDITOR'S ACCOUNT, WHICH DIFFERENCE DOES NOT PERTAIN TO CURRENT YEAR. 3. THE B RIEF FACT OF THE CASE IS THAT RETURN OF INCOME DECLARING INCOME OF RS. 9 , 41 , 700/ - WAS FILED ON 2 2 ND JULY, 2010. SUBSEQUENTLY , THE CASE WAS SELECTED UNDER SCRUTINY BY ISSUING OF NOTICE U/S. 143(2) OF THE ACT O N 28 TH SEP, 2012. 4. FURTHER FACT OF THE CASE ARE DISCUSSED UNDER DIFFERENT GROUND S OF APPEAL. 5. GROUND NO S . 1 & 5 ARE NOT PRESSED AT THE TIME OF HEARING BY LD. COUNSEL OF THE ASSESSEE, THEREFORE, THE SAME ARE DISMISSED AS NOT PRESSED. GROUND NO. 2 (ADDITION U/S. 145A) 6. DURING THE COURSE OF ASSE SSMENT YEAR O N VERIFICATION OF THE DETAILS FILED , ASSESSING OFFICER OBSERVED T H AT ASSESSEE HAS NOT INCLUDED THE DIRECT T A XES LIKE EXCISE DUTY, EDUCATION CESS, SURCHARGE AND V AT IN THE VALUE OF CLOSING STOCK. THE ASSESSING OFFICER ASKED THE ASSESSEE TO EXPLA IN WHY THE I.T.A NO. 959 /AHD/20 14 A.Y. 2010 - 11 PAGE NO SHRI KIRITBHAI N. PATEL VS. IT O ONTO THE MATERIAL ON RECORD 3 AFORESAID DIRECT TAXES SHOULD NOT BE INCLUDED IN THE VALUATION OF CLOSING STOCK. THE ASSESSEE EXPLAINED THAT CLOSING STOCK HAS BEEN VALUED NET OF TAXES AND EXCISE DUTIES AND FURTHER STATED THAT THE AFORESAID TAXES HAS BEEN SHOWN IN THE BALANCE SHEET AND NOT CLAIMED AS EXPENDITURE IN THE PROFIT AND LOSS ACCOUNT. THE ASSESSING OFFICER HAS NOT AC CEPT ED THE EXPLANATION OF THE ASSESSING OFFICER AND STATED THAT AS PER SECTION 145A , IT IS REQUIRED TO VALUE THE CLOSING STOCK AFTER INCLUDING THE AMOUN T OF ANY TAX DUTY CESS ETC. ACTUALLY PAID BY THE ASSESSEE. CONSEQUENTLY, THE ASSESSING OFFICER INCLUDED THE EXCISE DUTY, VAT ETC. IN THE VALUATION O F CLOSING STOCK AND MADE ADDITION OF RS. 14 , 12 , 064/ - AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE. 7. AGG RIEVED ASSESS EE HAS FILED APPEAL BEFORE THE L D . CIT(A). THE LD. CIT(A) HAS PARTLY SUSTAINED THE ADDITION AFTER DELETING THE CALCULATION ERROR OF RS. 2 , 80 , 800/ - IN THE VALUATION OF CLOSIN G STOCK AND RESTRICTED THE ADDITION TO THE EXTENT OF RS. 11 , 31 , 264/ - . 8. DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE US, THE LD. COUNSEL HAS SUBMITTED PAPER BOOK CONTAINING DETAIL OF SUBMISSION MADE BEFORE ASSESSING OFFICER AND CIT(A). THE LD. COUNSEL HAS CONTENDED THAT ASSESSEE HAS NOT INCLUDED EXCISE DUTY A ND VAT ELEMENT IN THE VALUATION OF CLOSING STOCK AS THIS PRACTICE HAS BEEN FOLLOWED BY THE ASSESSEE FROM YEAR TO YEAR. HE HAS FURTHER SUBMITTED THAT ASSESSEE HAS FOLLOWED EXCLUSI VE METHOD AND NOT CLAIMED THESE EXPENSES ON THE DEBIT SID E OF THE P & L A/C. ON THE OTHER HAND, LD. DEPARTMENTAL REPRESENTATIVE HAS SUPPORTED THE ORDER OF LD. CIT(A). I.T.A NO. 959 /AHD/20 14 A.Y. 2010 - 11 PAGE NO SHRI KIRITBHAI N. PATEL VS. IT O ONTO THE MATERIAL ON RECORD 4 9. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD CAREFULLY. IT IS NOTICED THAT ASSESSEE HAS BEEN FOLLOWING THE EXCLUSIVE METHOD O F ACCOUNTING FOR EXCISE DUTY AND V AT ELEMENT I.E. EXCISE DUTY AND V AT COLLECTED WAS ACCOUNTED IN THE BALANCE SHEET. THE ASSESSEE HAS ALSO NOT CLAIMED PAYMENT OF SUCH EXCISE DUTY VAT ETC . AS EXPENSE IN THE DEBI T SIDE OF THE P & L A/C. IT IS ALSO BROUGHT TO OUR NOTICE THAT THE IDENTICAL ISSUE HAS BEEN ADJUDICATED IN THE CASE OF THE ASSESSEE FOR ASSESSMENT YEAR 2012 - 13 BY THE CO - ORDINATE BENCH AND THE ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE. WE HAVE GONE THROUGH THE AFORESAID ORDER O F THE CO - ORDINATE B ENCH IN THE CASE OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2012 - 13 VIDE ITA NO. 2676/AHD/2016 DATED 17 TH JULY 2018 WHEREIN THE ISSUE HAS BEEN DECIDED IN FA V OUR OF THE ASSESSEE. RELEVANT PART OF THE DECISION IS REPRODUCED AS UNDER : - 2. WITH THE ASSISTANCE O F THE REPRESENTATIVES FOR REVENUE AND THE ASSESSEE, WE HAVE CAREFULLY EXAMINED THE ISSUE. WHILE IT IS THE CASE OF THE REVENUE THAT THE ELEMENT OF EXCISE DUTY AND VAT AMOUNTING TO RS.38,74,927/ - REPRESENTS PART OF THE CLOSING STOCK OF THE ASSESSEE IN TERMS OF SECTION 145A OF THE ACT, IT IS THE CASE OF THE ASSESSEE ON THE OTHER HAND THAT SECTION 145A HAS NO APPLICATION TO THE FACTS OF THE CASE. IT IS FURTHER CASE OF THE ASSESSEE THAT THE ASSESSEE FOLLOWS EXCLUSIVE METHOD OF ACCOUNTING FOR VALUATION OF INVEN TORY AND THEREFORE, ENTIRE EXERCISE WOULD BE TAXED NEUTRAL. IT IS THE CASE OF THE ASSESSEE THAT ON ACCOUNT OF THE EXCLUSIVE METHOD OF ACCOUNTING, THE EXCISE DUTY AND VAT IS EXCLUDED AT THE THRESHOLD AND ACCOUNTED FOR SEPARATELY AS A BALANCE SHEET ITEM. T HUS, WHEN THE PURCHASE COST DOES NOT INCLUDE THE EXCISE DUTY AND VAT ETC. AND CONSEQUENTLY DO NOT FORM PART OF THE PROFIT & LOSS ACCOUNT, THERE IS NO WARRANT TO INCLUDE SUCH DUTY AND COSTS IN THE CLOSING STOCK. IT IS THE CASE OF THE ASSESSEE THAT WHEN SEE N IN PERSPECTIVE, ACCOUNTING METHOD ADOPTED BY THE ASSESSEE IS REVENUE NEUTRAL AND DOES NOT MAKE ANY IMPACT ON THE PROFITABILITY OF THE CONCERN PER SE. IN THE BACKDROP OF FACTS NOTED ABOVE, WE DO NOT SEE ANY ERROR IN THE CONCLUSION DRAWN BY THE CIT(A). I N ESSENCE, THERE WILL BE NO INFRINGEMENT OF SECTION 145A WHERE THE ACTION OF ASSESSEE IS REVENUE NEUTRAL. IN THIS REGARD, THE CIT(A) OBSERVED THAT THE ISSUE IS NO LONGER RES INTEGRA AND ADJUDICATED THE ISSUE IN FAVOUR OF THE ASSESSEE PLACING RELIANCE UPON SEVERAL DECISIONS OF THE CO - ORDINATE BENCH OF TRIBUNAL AS LISTED IN THE ORDER OF THE CIT(A). THE CONCLUSION OF CIT(A) IS ON LEGALLY SOUND FOOTING. IN THESE CIRCUMSTANCES, WE DECLINE TO INTERFERE WITH THE ORDER OF THE CIT(A). I.T.A NO. 959 /AHD/20 14 A.Y. 2010 - 11 PAGE NO SHRI KIRITBHAI N. PATEL VS. IT O ONTO THE MATERIAL ON RECORD 5 RESPECTFULLY FOLLOWING THE D ECISION O F THE CO - ORDINATE BENCH OF THE IT AT ON IDENTICAL ISSUE AND FACT AS SUPRA , W E ALLOW THE APPEAL O F THE ASSESSEE . GROUND NO. 3 (UNEXPLAINED INVESTMENT IN PURCHASE OF RAW MATERIAL) 10. DURING ASSESSMENT, THE ASSESSING OFFICER NOTICED THAT ASSES SEE HAS NOT MAINTAINED ANY STOCK REGISTER EXCEPT THE REGISTER MAINTAINED FOR THE PURPOSE OF PAYMENT OF EXCISE DUTY AS PER EXCISE LAW. THE ASSESSEE HAS NOT FURNISHED TIME WISE CONSUMPTION DETAILS OF RAW MATERIAL. AFTER VERIFICATION OF THE DETAILS FURNISH ED BY THE ASSESSEE, THE ASSESSING OFFICER NOTICED THE FOLLOWING DISCREPANCIES IN THE MAINTENANCE OF STOCK AT VARIOUS ITEMS: - MONTH ITEM NAME OPENING INWARD CONSUMPTION CLOSING CLOSING STOCK DIFFEREN INKGS INKGS INKGS STOCK AS REFLECTED IN THE RG CE IN (A) (B) (Q PER 23 PART I KGS CALCULATION FURNISHED BY THE (A)+(B) - ASSESSEE IN KGS (C) INKGS APRIL M S ROUND BARS 92955 9895 5193 0 50920 50890 ( - )30 2009 JUNE M S ROUND BARS 25750 5740 19470 12020 11750 ( - ) 270 2 009 - I.T.A NO. 959 /AHD/20 14 A.Y. 2010 - 11 PAGE NO SHRI KIRITBHAI N. PATEL VS. IT O ONTO THE MATERIAL ON RECORD 6 NOV MS 0 167938 67788 100150 99150 ( - ) 1000 2009 TUBE/PIPE JANUARY MS 151421 127653 110773 168301 184721 (+) 2009 TUBE/PIPE 16420 = THE ASSESSING OFFICER HAS ASKED THE ASSESSEE TO EXPLAIN THE DISCREPANCIES AS MENTIONED IN THE TABLE AND THE ASSESSEE HAS FAILED TO EXPLAIN THE EXCESS STOCK OF 16420 KG MS TUBES/PIPE AS ON JAN, 2009. C ONSEQUENTLY, THE ASSESSING OFFICER HAS MADE ADDITION OF RS. 693934/ - AS UNEXPLAINED INVESTMENT U/S. 69 OF THE ACT. 11. AGGRIEVED ASSESSEE HAS FILED APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) HAS PARTLY ALLOWED THE APPEAL SUBJECT TO RE - VERIFICATION AND RE - CALCULATION BY THE A O 12. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD CAREFULLY. ON VERIFICATION OF THE DETAIL, THE ASSESSING OFFICER NOTICED THAT THE RE WAS EXCESS STOCK OF 16420 KG MS TUBES IN THE MONTH OF JAN, 2009 AS REPORTED ABOVE IN THIS ORDER . IN SPITE OF GIVING A NUMBER OF OPPORTUNITIES, THE ASSESSEE HAS FAILED TO EXPLAIN THE DISCREPANCY NOTICED IN THE STOCK OF MS TUBE S . WE HAVE GONE THROUGH THE ORDER OF THE LD. CIT(A) REPRODUCED AS UNDER: - 4.2 I HAVE CAREFULLY CONSIDERED THE FACTS OF THE CASE IN THE LIGHT OF SUBMISSIONS IN A IN AND IN A MADE BY THE APPELLANT, THE ARGUMENTS TAKEN BY THE ASSESSING OFFICER & MATERIAL AV AILABLE ON RECORDS. IT IS THE CASE OF THE APPELLANT THAT IT HAS MAINTAINED ALL RECORDS AS PER EXCISE LAW. IT HAS I.T.A NO. 959 /AHD/20 14 A.Y. 2010 - 11 PAGE NO SHRI KIRITBHAI N. PATEL VS. IT O ONTO THE MATERIAL ON RECORD 7 BEEN ARGUED THAT THE ADDITION IS BASED UPON AN ISOLATED INSTANCE OF EXCESS WHICH WAS ACTUALLY ON ACCOUNT OF AN ARITHMETICAL ERROR OF C/F BALANC E OF STOCK ON 11 - 1 - 2010, OF RS. 154,133/ - AS AGAINST RS. 1,30,713/ - . THUS IT HAS BEEN SUBMITTED THAT THE DISCREPANCY IS ACTUALLY OF RS. 14,420/ - AND NOT RS. 16,420/ - . THE APPELLANT HAS POINTED OUT THAT THERE ARE OTHER DISCREPANCIES ON ACCOUNT OF TOTALLING ERRORS WHICH IF CONSIDERED WOULD LEAD TO REDUCTION OF THE TOTAL ADDITION OF AT LEAST RS. 28,444/ - . THE APPELLANT HAS ADMITTED THAT THERE ARE DISCREPANCIES IN THE STOCK STATEMENT VIJ A VI EXCISE RECORDS WHICH INDICATE TOWARDS AN UNACCOUNTED INVESTMENT. THE APPELLANT ON ITS PART HAS NOT BEEN ABLE TO SATISFACTORILY EXPLAIN THE REASONS FOR REPEATED OCCURRENCE OF THESE SO CALLED ARITHMETICAL AND CALCULATION ERRORS. THUS THERE CAN BE NO JUSTIFICATION IN THE ARGUMENT OF THE APPELLANT THAT THE DIFFERENCE NOTED BY T HE LD A O IS PURELY A CASE OF INADVERTENT ARITHMETICAL ERROR. CONSEQUENTLY, THE ACTION OF THE A O IN MAKING ADDITION ON ACCOUNT OF STOCK DISCREPANCY IS SUSTAINED. AS FAR AS THE ARGUMENT OF THE APPELLANT REGARDING THE ARITHMETICAL AND CALCULATION ERRORS OF RS. 28,444/ - IS CONCERNED, THE A O IS TO RE - VERIFY AND RECALCULATE THE VALUATION DONE BY HIM IN RESPECT OF CLOSING STOCK. IN CASE, IT IS FOUND THAT A CALCULATION ERROR OF RS. 28,444/ - OR ANY OTHER AMOUNT HAS CREPT IN THE SAME HAS TO BE REMOVED. THUS, THE ADDITION TO THE EXTENT OF RS.6,65,490/ - IS CONFIRMED FORTHWITH (693934 MINUS 28444). AS REGARDS, THE BALANCE ADDITION OF RS. 2S444/ - , THE A O SHALL RE - VERIFY AND RECALCULATE THE VALUATION DONE BY HIM AND IN CASE IT IS FOUND THAT IT WAS ON ACCOUNT OF CALCUL ATION ERRORS THEN THE SAME SHALL BE REMOVED. IN CASE, IT IS NOTED THAT THERE WAS NO SUCH CALCULATION ERROR, THEN THE SAID ADDITION OF RS. 28444/ - WILL ALSO PREVAIL. TO THE EXTENT THE GROUND OF APPEAL NO. 2 RAISED IS PARTLY ALLOWED SUBJECT TO RE - VERIFICATIO N AND RE - CALCULATION OF THE A O. WITH THE ASSISTANCE OF LEARNED COUNSEL WE HAVE GONE THROUGH THE MATERIAL ON RECORD AND OBSERVED THAT IN SPITE OF GIVING A NUMBER OF OPPORTUNITIES THE ASSESSEE HAS FAILED TO EXPLAIN THE REASON FOR THE AFORESAID DISCREPAN CY WITH ANY RELEVANT SUPPORTING EVIDENCE AND MATERIAL . EVEN DURING THE COURSE OF APPELLANT PROCEEDING BEFORE US THE LEARNED COUNSEL HAS FAILED TO EXPLAIN WITH RELEVANT MATERIAL ABOUT THE INTERCONNECTNESS IN THE ACTION OF THE ASSESSING OFFICER IN POINTING OUT THE AFORESAID DISCREPANCY IN THE STOCK. IN THE LIGHT OF THE ABOVE FACTS AND CIRCUMSTANCES W E CONSIDER THAT THERE IS NO INFIRMITY IN THE ORDER OF LD. CIT(A) . ACCORDINGLY , APPEAL OF THE ASSESSEE ON THIS ISSUE IS DISMISSED. GROUND NO. 4 ( ERROR IN ENH ANCING THE ADDITION BY RS. 2 , 03 , 708) 13. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER HAS MADE A DDITION OF RS. 3 , 36 , 727/ - ON ACCOUNT OF DIFFERENCE IN ACCOUNT OF I.T.A NO. 959 /AHD/20 14 A.Y. 2010 - 11 PAGE NO SHRI KIRITBHAI N. PATEL VS. IT O ONTO THE MATERIAL ON RECORD 8 CREDITORS. IN THE ASSESSMENT, THE ASSESSING OFFICER HAS ISSUED NOTICE U /S. 133(6) TO THE CREDITORS CALLING FOR LEDGER ACCOUNT CONFIRMATIONS FROM THEIR BOOKS OF ACCOUNT. THEREAFTER , THE ASSESSING OFFICER HAS VERIFIED THE CONFIRMATION S RECEIVED FROM THE CREDITORS WITH THE BALANCE OF THOSE CREDITORS APPEARING IN THE BOOKS OF AC COUNT OF THE ASSESSEE. ON VERIFICATION HE NOTICED THAT O NE OF THE CREDITORS NAMELY ROYAL SEALS P VT. LTD. HAS SHOWN AN AMOUNT OF RS. 62 , 951/ - AS PAYABLE TO THE ASSESSEE O N THE OTHER HAND THE ASSESSEE HAS SHOWN AN AMOUNT OF RS. 2 , 73 , 777/ - AS PAYABLE BY M/ S ROYAL STEEL PVT. LTD. TO THE ASSESSEE. SINCE THE ASSESSEE HAS FAILED TO RECONCILE THE AFORESAID DISCREPANCY, THEREFORE, THE ASSESSING OFFICER HAS ADDED RS. 3 , 36 , 727/ - (RS. 2 , 73 ,777+ RS. 62, 951) AS UNEXPLAINED PAYMENT MADE BY THE ASSESSEE TO THE SAID PA RTIES AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE. 14. AGGRIEVED ASSESSEE HAS FILED APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) HAS ENHANCED THE AFORESAID ADDITION TO THE AMOUNT OF RS. 5 , 39 , 805/ - BY MAKING ANOTHER ADDITION OF RS. 2 , 03 , 708/ - . IN THI S CONNECTION, THE LD. CIT(A) STATED THAT IN RESPECT OF RSPL THE ASSESSING OFFICER HAD NOT CONSIDERED THE RECONCILIATION ON ACCOUNT OF NON - DEPOSIT OF CHEQUE OF RS. 2 , 03 , 078 BY RSPL AND IF THAT AMOUNT IS TAKEN INTO ACCOUNT THEN THE DIFFERENCE C OULD BE ACTU ALLY INCREASED TO RS . 5 , 39 , 805/ - . DURING T HE COURSE OF APPELLATE PROCEEDINGS, LD. COUNSEL HAS SUBMITTED PAPER BOOK CONTAINING THE LEDGER ACCOUNT OF ROYAL STEEL PVT. LTD. IN WHICH AS PER PAGE NO. 57 OF THE PAPER BOOK THE ASSESSEE HAS MADE PAYMENT OF RS. 2 , 03 , 7 0 8/ - ON 29 TH MARCH, 2010 BY RT GS AND IT IS CONTENDED THAT SAID PARTY RSPL HAD A CCOUNTED THE SAID AMOUNT OF RS. 203 7 0 8/ - IN THEIR ACCOUNT IN THE MONTH OF APRIL , T HERE FORE, THERE SHOULD NOT BE ANY ENHANCEMENT. THE LEARNED COUNSEL HAS I.T.A NO. 959 /AHD/20 14 A.Y. 2010 - 11 PAGE NO SHRI KIRITBHAI N. PATEL VS. IT O ONTO THE MATERIAL ON RECORD 9 ALSO SUBMITTED THAT OTHER PART OF ADDITION TO THE AMOUNT OF RS. 3,36,727 WAS INCORRECTLY MADE WITHOUT CONSIDERING THE DETAIL OF TRANSACTIONS REFLECTED IN THE LEDGER ACCOUNT OF THE RSPL PLACED AR PAGE NO. 56 OF THE PAPER BOOK. ON THE OTHER HAND, LD. DEPARTMENTAL REPRESENTATI VE RELIED ON THE ORDER OF LD. CIT(A). AFTER CONSIDERING THE ABOVE SUBMISSION OF THE ASSESSEE ALONG WITH SUPPORTING DOCUMENT AND MATERIAL AS MENTIONED ABOVE IN THE SUBMISSION OF LD. COUNSEL WE CONSIDER IT APPROPRIATE TO REMIT THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR DECIDING A FRESH AFTER EXAMINATION OF THE MATERIAL TO BE PRODUCED BY THE ASSESSEE. IN THE RESULT THIS GROUND OF APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. GROUND NO. 4(B): ( DISCREPANCY IN THE FIGURE PERTAINING T O OPENING BALANCE) 15 . LD. COUNSEL HAS CONTENDED THAT THE ASSESSING OFFICER HAS MADE ADDITION IN RESPECT OF SUNDRY CREDITOR S BY T AKING INTO ACCOUNT THE OPENIN G STO CK BALANCE OF SUNDRY CREDI TORS. HE HAS FURTHER CONTENDED THAT ADDITION ON ACCOUNT OF OPENING BALANCE SHOULD NOT BE MADE IN THE CURRENT YEAR. ON THE OTHER HAND, LD. DEPARTMENTAL REPRESENTATIVE HAS SUPPORTED THE ORDER OF ASSESSING OFFICER. 16 . W E HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD CAREFULLY. WE FIND THAT STRENGTH IN THE ARGUMENT OF THE LD. COUNSEL, THEREFORE, WE RESTORE THIS ISSUE TO THE FILE OF ASSESSING OFFICER TO ADJUDICATE AFTER VERIFICATION AND WITH DIRECTI ON THAT IF THE BALANCE PERTAINING TO THE I.T.A NO. 959 /AHD/20 14 A.Y. 2010 - 11 PAGE NO SHRI KIRITBHAI N. PATEL VS. IT O ONTO THE MATERIAL ON RECORD 10 OPENING STOCK , THE SAME SHOULD NOT BE ADDED DURING THE YEAR UNDER CONSIDERATION . IN THE RESULT, THIS ISSUE IS ALLOWED FOR STATISTICAL PURPOSES. 17. IN THE RESULT, GROUND NO. 1 IS DISMISSED, GROUND NO. 2 IS ALLOWE D, GROUND NO. 3 IS DISMISSED , GROUND NO. 4 (A) AND GROUND NO. 4 (B) ALLOWED FOR STATISTICAL PURPOSE AND GROUND NO. 5 IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 14 - 02 - 201 9 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 14 /02 /2019 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,