DCIT, CIR-1(2), KOLKATA, Kolkata V. M/s The India Jute & Industries Ltd., Kolkata

ITA 995/KOL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1203 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2005-2006
• Appeal Filed On: 09-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KALYAN NATH
• Assessee Lawyers: N O N E

Judgement Text

1 ITA NO.995/KOL/2015 THE INDIA JUTE & IND. LTD.., AY, 2005-06 , D , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: KOL KATA ( ) . . , . ' # $% % , '( ) [BEFORE SHRI A. T. VARKEY, JM & DR. A. L. SAINI, A M] I.T.A. NO. 995/KOL/2015 ASSESSMENT YEAR: 2005-06 DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-1(2), KOLKATA VS. THE INDIA JUTE & INDUSTRIES LTD. (PAN: AABCT1896P) APPELLANT RESPONDENT DATE OF HEARING 07.09.2017 DATE OF PRONOUNCEMENT 03.11.2017 FOR THE APPELLANT SHRI KALYAN NATH, ADDL. CIT, DR FOR THE RESPONDENT N O N E ORDER PER SHRI A.T.VARKEY, JM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A)-1, KOLKATA DATED 20.03.2015 FOR AY 2005-06. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL OF REVENU E RELATES TO DELETION OF ADDITION OF RS.62,93,959/- ON ACCOUNT OF VALUATION OF CLOSING S TOCK. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE AT THE TIME OF HEARING BEFORE US. AFTER CAREFULLY PERUSING THE RECORDS WE FIND THAT THIS AP PEAL CAN BE DECIDED BY US EX PARTE AFTER HEARING THE LD. DR. 4. WE HAVE HEARD LD. DR AND CAREFULLY PERUSED THE M ATERIAL AVAILABLE ON RECORD. WE NOTE THAT THE ASSESSEE HAD REDUCED THE VALUE OF CLO SING STOCK DUE TO OBSOLESCENCE AS THE MILL WAS LYING CLOSED SINCE 2002 AND THE VALUE OF CLOSIN G STOCK AND PLANT WERE BEING DEPLETED. WE ALSO NOTE THAT IDENTICAL ISSUE WAS CONSIDERED BY THE TRIBUNAL IN ASSESSEES OWN CASE FOR AY 2004-05. WE ALSO NOTE THAT THE LD. CIT(A) FOR D ELETING THE IMPUGNED ADDITION OF RS.62,93,959/- FOLLOWED THE TRIBUNALS ORDER DATED 26.10.2007 IN ASSESSEES OWN CASE FOR AY 2004-05 HAS OBSERVED AS UNDER: 4.2. THE SUBMISSIONS OF THE APPELLANT HAVE BEEN C ONSIDERED. IT IS SEEN FROM THE ASSESSMENT ORDER THAT THE A.O. HAS MADE ADDITION ON THE BASIS OF ADDITION MADE IN THE CASE OF THE 2 ITA NO.995/KOL/2015 THE INDIA JUTE & IND. LTD.., AY, 2005-06 APPELLANT ON SIMILAR GROUNDS IN A.Y.2004-05. IT IS HOWEVER SEEN THAT THE SAME HAS BEEN CONSIDERED IN A.Y. 2004-05 BY HON ITAT KOLKATA, VID E ITS ORDER DATED 26.10.2007 IN WHICH THE ITAT HAS HELD AS UNDER- 'WE HAVE GIVEN OUR CAREFUL CONSIDERATION TO THE RIV AL SUBMISSIONS MADE BEFORE US AND HAVE PERUSED THE ORDERS OF LAX AUTHORITIES. WE HAVE ALSO CONSIDERED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IT IS AN UNDISPUTED F ACT THAT THE MILL OF THE ASSESSEE IS LYING CLOSED SINCE 2002 AND THE SALE OF THE ASSESSE E-COMPANY DURING THE YEAR UNDER CONSIDERATION ALSO CAME DOWN TO RS.0.47 CRORES AGAI NST RS.13.65 CRORES IN 2003-04 AND RS.29.29 CRORES IN 2001-02. THE ASSESSEE-COMPAN Y IN SUPPORT OF ITS ARGUMENT FOR DE-VALUATION OF STOCK HAS FURNISHED DETAILS OF SALES OF THE FINISHED GOOD FOR THE SUBSEQUENT YEAR, WHICH HAS NOT BEEN CONSIDERED BY T HE ID. CIT(A) HOLDING THAT SALE OF SUBSEQUENT YEAR WILL NOT HAVE ANY BEARING FOR TH E RELEVANT ASSESSMENT YEAR. HOWEVER, IT IS ALSO A FACT THAT IN THE IMMEDIATELY NEXT YEAR ALSO, THE ASSESSEE HAS SHOWN LOSS OF RS.0.L1 CRORE AND IF THE SO-CALLED CL OSING STOCK ENHANCED BY THE REVENUE IS BEING GIVEN EFFECT TO THE OPENING STOCK, THE LOSS WOULD HAVE INCREASED COMPARING TO THE LOSS OWN BY THE ASSESSEE IN THIS Y EAR AT RS.0.431 CRORE AND, THEREFORE, CONSIDERING THE ABOVE FACTS AND CIRCUMST ANCES, IN OUR OPINION, THE ACTION OF A.O. AND LD. CIT(A) IN MAKING AND SUSTAINING THE ADDITION WAS NOT CORRECT AND THEREFORE, THE SAME IS DELETED AND THE GROUNDS RAIS ED BY THE ASSESSEE IN THIS REGARD ARE ACCEPTED.' IT IS THEREFORE, SEEN THAT THE ADDITION HAS BEEN MA DE IN THE CURRENT YEAR UNDER SIMILAR GROUNDS AND NO NEW FADS HAVE BEEN BROUGHT ON RECORD BY THE A.O IN THIS YEAR, THEREFORE FOLLOWING THE ORDER OF ITAT AS ABOVE IN THE APPELLA NTS OWN CASE FOR AY 2004-05 THE ADDITION MADE BY THE AO OF RS.62,93,959/- IS DELETE D. 5. AFTER HEARING THE LD. DR AND CAREFULLY CONSIDER ING THE MATERIAL AVAILABLE ON RECORD, WE NOTE THAT THE ISSUE INVOLVED IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF COORDINATE BENCH OF THIS TRIBUNAL IN ASSESSEES OWN CASE FOR AY 2004-05 DATED 26.10.2007 AND THE LD. CIT(A) DELETED THE IMPUGNED ADDITION BY RELYING ON THE ORDER OF THE TRIBUNAL, CITED SUPRA. SINCE THE LD. CIT(A) DELETE D THE ADDITION BY FOLLOWING THE ORDER OF THE TRIBUNAL, AND SINCE THERE IS NO CHANGE IN FACT S OR LAW, WE CONFIRM THE ORDER OF LD. CIT(A) AND THE SAME IS HEREBY UPHELD. SO, THE APPE AL OF THE REVENUE IS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 3 RD NOVEMBER, 2017 SD/- SD/- (DR. A. L. SAINI) (ABY. T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 3RD NOVEMBER, 2017 JD.(SR.P.S.) 3 ITA NO.995/KOL/2015 THE INDIA JUTE & IND. LTD.., AY, 2005-06 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT DCIT, CIRCLE-1(2), KOLKATA 2 RESPONDENT M/S. THE INDIA JUTE & INDUSTRIES LTD ., 216, A. J. C. BOSE ROAD, ROOM NO. 4A, KOLKATEA-24. 3. THE CIT(A), KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, SR. PVT. SECRETARY