The ACIT, Central Circle-2(1), Ahmedabad V. M/s. Sanjay Castings, Bhavnagar

ITSSA 521/AHD/2012

• Counselvise Citation: [2016] 122 COUNSELVISE.COM (IT) 1637 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 22 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 17-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 15-03-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 26-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S N SOPARKAR
• Assessee Lawyers: R I PATEL
• Keywords: Loose papers
• Section: 133A; 131; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH (BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER) IT(SS)A. NOS: 484 TO 487/AHD/2012 & IT(SS)A NOS. 526 TO 529/AHD/2012 (ASSESSMENT YEARS: 2007-08 TO 2010-11) M/S. SANJAY CASTING (I) PVT. LTD. PLOT SURVEY NO. 217, 218, 219 GHANGLI VILLAGE, GIDC PHASE-IV, SIHOR, BHAVNAGAR PAN NO. AAJCS0691P THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(1), AHMEDABAD V/S V/S THE ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(1), AHMEDABAD M/S. SANJAY CASTING (I) PVT. LTD. PLOT SURVEY NO. 217, 218, 219 GHANGLI VILLAGE, GIDC PHASE-IV, SIHOR, BHAVNAGAR PAN NO. AAJCS0691P (APPELLANT) (RESPONDENT) IT(SS)A. NOS: 477 TO 483/AHD/2012 & IT(SS)A NOS. 519 TO 525/AHD/2012 (ASSESSMENT YEARS: 2004-05 TO 2010-11) M/S. SANJAY CASTING, 407/2, PHASE-II, GIDC, SIHOR, DIST: BHAVNAGAR PAN NO. AAKFS7470A V/S THE ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(1), AHMEDABAD IT(SS)A NOS. 484 TO 487/AHD/12 & 526 TO 529/ A/12, 477 TO 483/A/12 519 TO 525/A HD/12 . A.YS. 2004 -05 TO 2010-2011 2 THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(1), AHMEDABAD V/S M/S. SANJAY CASTING, 407/2, PHASE-II, GIDC, SIHOR, DIST: BHAVNAGAR PAN NO. AAKFS7470A (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.N. SOPARKAR, AR RESPONDENT BY : SHRI R.I. PATEL, CIT/ D.R. ( )/ ORDER DATE OF HEARING : 15 -03-201 6 DATE OF PRONOUNCEMENT : 17-03-2016 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THESE CAPTIONED APPEALS AND CROSS APPEALS OF THE AS SESSEE AND THE REVENUE ARE DIRECTED AGAINST THE ORDER OF THE LD. C IT(A)-III, AHMEDABAD DATED 27.08.2012 PERTAINING TO A.Y. 2004- 05 TO 2010-11 AND 2007-08 TO 2010-11 IN RESPECT OF TWO DIFFERENT ASSESSEES NAMELY M/S. SANJAY CASTING AND SANJAY CASTING INDIA PVT. L TD. 2. WE FIND THAT THE FIRST APPELLATE AUTHORITY HAS DISP OSED OF ALL THESE APPEALS BY A CONSOLIDATED ORDER AS THE GRIEVANCE IS COMMON IN ALL THESE APPEALS. WE HAVE, THEREFORE, HEARD ALL THESE APPEALS TOGETHER AND DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE O F CONVENIENCE. IT(SS)A NOS. 484 TO 487/AHD/12 & 526 TO 529/ A/12, 477 TO 483/A/12 519 TO 525/A HD/12 . A.YS. 2004 -05 TO 2010-2011 3 3. THE COMMON GRIEVANCE OF THE ASSESSEES AND THE REVEN UE RELATES TO THE PRODUCTION LOSS. THE ASSESSEE HAS SHOWN THE LOS S @ 11% , THE A.O HAS ACCEPTED THE LOSS @ 8% AND WHEN THE MATTER WAS AGITATED BEFORE THE LD. CIT(A) HE ESTIMATED THE LOSS @ 10%. THE ASS ESSEE AND THE REVENUE ARE IN APPEAL AGAINST THIS FINDING OF THE F IRST APPELLATE AUTHORITY. WE HAVE HEARD THE RIVAL SUBMISSIONS AT L ENGTH AND HAVE CAREFULLY PERUSED THE ORDERS OF THE AUTHORITIES BEL OW. 4. BRIEFLY STATED THAT THE FACTS OF THE CASE ARE THAT BOTH THE ASSESSEES ARE MANUFACTURING C.I. CASTING/MOULD. A SEARCH PROCEE DING UNDER THE ACT WAS CARRIED OUT IN CASE OF PRIYA BLUE GROUP AND ITS ASSOCIATES. DURING THE COURSE OF SEARCH ACTION U/S. 132 OF THE ACT, SO ME LOOSE PAPERS WERE FOUND AND SEIZED. SOME PAGES OF THESE LOOSE PA PERS CONTAIN DOCUMENTS BELONGING TO M/S. SAJAY CASTING AND SANJA Y CASTING INDIA PVT. LTD. ACCORDINGLY, NOTICE U/S. 153C OF THE ACT WAS ISSUED AND SERVED UPON THE ASSESSEES. DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS, THE A.O NOTICED THAT A SURVEY ACTION W AS ALSO CARRIED ON AT THE BUSINESS PREMISES U/S. 133A OF THE ACT WHERE IN STATEMENT OF SHRI VIKRAMADITYA UPADHAYA, WHO WAS PRODUCTION IN-C HARGE, WAS RECORDED U/S. 131 OF THE ACT. 5. SPECIFIC QUESTIONS WERE ASKED IN RELATION TO THE PR ODUCTION PROCESS AND IN RESPONSE TO SUCH SPECIFIC QUESTIONS SHRI UPADHAY A STATED THAT THE BURNING LOSS IN THE PRODUCTION PROCESS IS 6%. 6. IN ADDITION TO THE STATEMENT OF SHRI UPADHAYA, STAT EMENT OF SHRI SATISH NAIR WAS ALSO RECORDED WHO WAS ASSISTANT MAN AGER. IN HIS REPLY, THE ASSISTANT MANAGER ADMITTED THAT NO SORT OF REGI STERS OR RECORDS ARE MAINTAINED FOR INPUT AS WELL AS OUTPUT I.E. FOR RAW MATERIALS AND IT(SS)A NOS. 484 TO 487/AHD/12 & 526 TO 529/ A/12, 477 TO 483/A/12 519 TO 525/A HD/12 . A.YS. 2004 -05 TO 2010-2011 4 PRODUCTION. HE ALSO STATED THAT THE ENTRIES ARE MAD E ON THE INSTRUCTION OF THE DIRECTORS. HOWEVER, SHRI NAIR ADMITTED THAT IF CONSUMPTION OF RAW MATERIAL IS SHOWN AT 100 KG., THE FINAL PRODUCT ION IS SHOWN AT 89 KG., THEREBY 11% IS SHOWN AS PRODUCTION LOSS. 7. TAKING A LEAF OUT OF THE STATEMENT OF THE PRODUCTIO N IN-CHARGE, SHRI UPADHAYA, THE A.O CALLED FOR DETAILS AND ASKED TO S HOW CAUSE WHY THE BURNING LOSSES SHOULD NOT BE TAKEN AS 6% OF THE TOT AL PRODUCTION. ASSESSEE FILED A DETAILED REPLY VIDE LETTER DATED 2 6.12.2011 IN WHICH NOT ONLY THE MANUFACTURING PROCESS WAS EXPLAINED BU T SPECIFIC REBUTTAL TO THE INFERENCES DRAWN BY THE A.O. FROM THE STATEM ENTS OF SHRI UPADHAYA AND SHRI NAIR WAS ALSO MADE THE DETAILED R EPLY READS AS UNDER:- .KINDLY REFER TO THE SHOW-CAUSE NOTICE DATED 14 .12.2011, WHERE YOUR GOOD SELF HAS CALLED FOR TO FURNISH FOLLOWING DETAILS AND INF ORMATION ALONG WITH NECESSARY EVIDENCES AND EXPLANATIONS IN CONNECTION TO BURNING LOSS IN THE PRODUCTION PROCESS. BURNING LOSS IN THE PRODUCTION PROCESS IN THIS CONNECTION THE A.O STATED THAT DURING THE C OURSE OF SURVEY STATEMENT OF SHRI VIKRAMADITYA UPADHYAYA, PRODUCTION IN-CHARGE OF THE ASSESSEE FIRM WAS RECORDED U/S. 131 OF THE ACT. IN HIS STATEMENT HE EXPLAINED IN DE TAIL THE PRODUCTION PROCESS. FURTHER IN REPLY TO Q. NO. 11 HE SPECIFICALLY STATED THAT THE BURNING LOSS IN THE PRODUCTION PROCESS IS 6%. IN ADDITION TO THE STATEMENT OF SH. VIKRAMADITY A UPADHYAYA. STATEMENT OF SH SATISH N NAIR, U/S. 131 WAS ALSO RECORDED. HE IS WORKING A S AN ASST. MANAGER IN THE FIRM. IN HIS REPLY TO Q.NO.17 OF THE STATEMENT HE CONFIRMED STAT EMENT OF SH. VIKRAMADITYA UPADHAYAY THAT NO SORT OF REGISTER OR RECORDS ARE MAINTAINED FOR INPUT AS WELL AS OUTPUT I.E. FOR RAW MATERIALS AND PRODUCTION. IN REPLY Q.NO.18 HE DEPOS ED THAT ON THE BASIS OF FIXED PERCENTAGE HE FURTHER EXPLAINED THAT IF CONSUMPTION OF RAW MATERIALS IS SHOWN 100 KG, FINAL PRODUCTION IS SHOWN 89 KG. BURNING LOSS IS SH OWN 8 KG, WASTE MATERIALS IS SHOWN 2 KG. AND GENERATION OF SCRAP IS SHOWN 1 KG. THIS RAT IO OF PRODUCTION AND LOSSES IS IT(SS)A NOS. 484 TO 487/AHD/12 & 526 TO 529/ A/12, 477 TO 483/A/12 519 TO 525/A HD/12 . A.YS. 2004 -05 TO 2010-2011 5 FOLLOWED SINCE INCEPTION OF THE FIRM. IN Q NO. 19 H E WAS CONFRONTED THAT THE AS PER HIS REPLIES TO Q. NOS. 18 AND 19 THE PRODUCTION IN BOOK S IS RECORDED IN THE FIX RATIO IN OTHER WORDS THE PRODUCTION IS SHOWN 89 KG. FROM THE STATEMENT OF SH. V.D UPADHAYAY AND SH. SAT ISH NAIR IT BECOMES CLEAR THAT THE FIRM IS RESORTING TO LARGE SCALE SUPPRESSION OF PRO DUCTION AND THEREBY SUPPRESSION OF SALES AND PROFIT TOO. AS AGAINST ACTUAL PRODUCTION OF 94% CONSUMPTION OF RAW MATERIALS THE REDUCTION ARE SHOWN AT 89% ONLY IN THE PRODUCTI ON REGISTER/BOOKS. THEREBY AT LEAST 5% YIELD IS SUPPRESSED. THEREFORE YOU ARE REQUESTED TO SHOW CAUSE WHY THE YIELD SHOULD NOT BE TAKEN AS 94% FOR AY 2004-05 TO AY 2010-11. Y OU ARE ONCE AGAIN REQUESTED TO PROVIDE CERTIFICATE OF CHARTERED ENGINEERS RELATING TO IT AND GIVE DETAILS OF PROCESS OF YOUR BUSINESS. YOU ARE REQUESTED TO SHOW CAUSE WHY ASSESSMENT SHO ULD NOT BE COMPLETED TAKING THE YIELD AT 94% AND RESULTANT DIFFERENCE MA Y BE TREATED AS UNDISCLOSED PRODUCTION AND SALES THEREOF. BEFORE REPLYING TO YOUR SPECIFIC QUERY OF BURNING L OSS WE WOULD LIKE TO SUBMIT THE NATURE OF INDUSTRY AND PROCESS OF MANUFACTURING CI, CASTIN G /MOULDS FROM IRON SCRAP /PIG IRON. MANUFACTURING PROCESS; THE FIRM IS MANUFACTURING CI CASTING/ MOULDS WHICH ARE SUPPLIED TO STEEL INDUSTRIES. THE MOULDS ARE PREPARED FROM SCRAP AND DURING THE PROCE SS, THERE ARE LOSSES OF VARIOUS NATURES, WHICH INCLUDES LOADING UNLOADING LOSSES, B REAKAGE LOSSES, IN MELTING PROCESS DUST, MUD, GREECE, RUBBERS ETC. RECEIVED WITH SCARP VAPORIZED / OXIDIZED IN PROCESS OF POURING METAL IN MOULDS SOME QUANTITY FALL DOWN AND MIXED MUD, AT VARIOUS STAGES OF FINISHING THERE IS LOSSES OF QUANTITY DUE TO QUALIT Y CHECKING, FINAL FINISH ETC. THUS THE LOSSES ARE OCCURRED IN THE PROCESS OF MANUFACTURING MOULDS FROM SCRAP. SIMILARLY AT THE TIME OF MELTING SCRAP THE WASTE IN THE NATURE OF SL AG SEPARATED FROM MELTED. THE VARIOUS PROCESSES IN MAKING CI CASTING/ MOULD FROM IRON SCR AP /PIG IRON ARE AS UNDER: (V) PROCURING OF IRON SCRAP/PIG IRON - IRON SCRAP /PIG IRON IS PURCHASED FROM SHIP BREAKERS. IMPORTERS OF SCRAP AND FROM OPEN LOCAL MA RKET. THE IRON SCRAP /PIG IRON IS RAW MATERIAL FOR THE INDUSTRY AND IN THE PROCESS OF LOA DING / UNLOADING OF SCRAP THERE ARE SOME LOSS IN WEIGHT THIS IS PART OF TOTAL LOSS /PRO CESS LOSS, THE PERCENTAGE OF SUCH LOSS IS 0.5%. IT(SS)A NOS. 484 TO 487/AHD/12 & 526 TO 529/ A/12, 477 TO 483/A/12 519 TO 525/A HD/12 . A.YS. 2004 -05 TO 2010-2011 6 (VI) BREAKING OF IRON SCRAP/PIG IRON - IRON SCRAP /PIG IRON IS BROKEN INTO SMALL PIECES WHICH IS DUE TO 2 REASONS : (I) THE SIZE OF FURNACE IS 36' X 25' I.E THE FURNACE IS OF 25 FEET HEIGHT WITH DIAMETER OF HARDLY 36 INCHES , (II ) THEREFORE SCRAP OF ANY SIZE IS THEN BROKEN /CUT TO SMALL SIZE. THERE ARE SOME LOSSES IN BREAKING THIS IS PART OF TOTAL LOSS /PROCESS LOSS, THE PERCENTAGE OF SUCH LOSS IS 0.5% TO 1%. (VII) IMPURITIES IN IRON SCRAP /PIG IRON - IRON SCRAP /PIG IRON IS PART OF SHIPS SCRAP IMPORTED AND SCRAP COLLECTED FROM LOCAL INDUSTRIES. SUCH SCRAP IS CONTAINING SOME IMPURITIES LIKE RUBBERS / PLASTIC / WOODEN ATTACHME NT GREASE OIL OR COLOR RUST IRON CONTENT ETC. THESE ITEMS ARE PART AND PARTIAL OF IRON SCRAP /PIG IRON PURCHASED THESE ITEMS ARE. SEPARATED / EVAPORATED VAPORIZED AND LOST IN FIRE. THERE ARE SOME LOSSES OF THIS NATURE, THIS IS PART OF TOTAL LOSS /PROCESS LOSS, THE PERCE NTAGE LOSS, THE PERCENTAGE OF SUCH LOSS IS 1% TO 1.5%. (VIII) MELTING / BURNING LOSS - SMALL PIECES OF IRON SCRAP /PIG IRON ARE PUT IN F URNACE ALONG WITH COKE FOR MELTING / BLASTING THE METAL IN LIQUID FORM. IN THIS PROCESS THE IRON SCRAP IS MELTED AT TEMPERATURE OF 1400 C AS THE MIN IMUM TEMPERATURE REQUIRED IS 1100 C, IN THIS PROCESS THE METAL SCRAP VAPORIZED / OXID IZED AND THERE IS BURNING LOSS OF 6% TO 7% DEPENDING UPON THE QUALITY OF SCRAP WHICH IS STE AMED OUT AS SMOKE. SIMILARLY AT THE TIME OF MELTING THERE IS GENERATION OF SLAG WHICH I S PART OF TOTAL LOSS /PROCESS LOSS THE PERCENTAGE OF SUCH SLAG LOSS IS 1.5 % TO 2% INCLUDE D IN OVERALL 6% TO 7 % BURNING LOSS (III) POURING LOSS - THE LIQUID METAL IS POURED IN MOLDING BOX FOR MAK ING CASTINGS / MOULDS OF REQUIRED SIZES AS PER CUSTOMER ORDERS. IN THIS PROCESS, THE HOT LIQUID METAL IS POURED IN A SMALL HOLE ON THE MOLDING BOX AND INSID E THE BOX, THE METAL CAME IN TOUCH OF SAND, IN THIS PROCESS, THERE ARE LOSSES OF METAL AT 0.5% TO 1%. (IV) FATLINS / CHEEPING / GRINDING / MACHINING LOSS -THE ROUGH METAL CASTING / MOULD BROUGHT OUT FROM LIQUID METAL AND THERE ARE SO MANY SMALL DOTS OF METAL PIECES ON SUCH MOULD/ CASTING, THESE SMALL METAL PIECES / DOTS ARE SEPARATED BY HAMMER, PEERING, AND CHISEL TO CLEAR RUNNERS AND RISERS FROM THE MOULD A ND THE FINAL CASTING / MOULD ITEM IS GIVEN FINISHING TOUCH BEFORE DISPATCH, THIS IS LIKE POLISHING THE METAL ON UPPER / OUTER SURFACE TO GIVE BETTER SHAPE AND LOOK, SO THAT THE BUYERS CAN USE IT. THERE ARE LOSSES OF IT(SS)A NOS. 484 TO 487/AHD/12 & 526 TO 529/ A/12, 477 TO 483/A/12 519 TO 525/A HD/12 . A.YS. 2004 -05 TO 2010-2011 7 METAL AT 1.25% TO 1.50%, WHICH IS MIXED IN SAND / M UD AND INVISIBLE FORM I.E. METAL POWDER / DUST ETC. THUS, THERE IS TOTAL LOSS INCLUDING BURNING LOSS, S LAG AND WASTAGE @ 10% TO 12%, AS NORMAL TREND IN THE INDUSTRY, PROCESS CONTROL CHART ALONG WITH PROCESS DIAGRAM ENCLOSED EXB-1. IN THIS REGARD, WE ARE FURNISHING EXPLANATIONS/REPL IES TO THE OBJECTIONS RAISED BY AO: 4. DURING THE COURSE OF SURVEY STATEMENT OF SHRI VIKRAMADITYA UPADHYAYA, PRODUCTION IN - CHARGE OF THE ASSESSEE COMPANY WAS RECORDED U/ S. 131 OF THE ACT. IN HIS STATEMENT HE EXPLAINED IN DETAIL THE PRODUCTION PROCESS. FURTHER , IN REPLY TO QN. 11, HE SPECIFICALLY STATED THAT THE BURNING LOSS IN THE PRODUCTION PROC ESS IS 6%. OUR REPLY - IN REPLY TO QN. 11, PRODUCTION IN-CHARGE SH. VIK RAMADITYA UPADHYAYA STATED AS UNDER: Q.11 WHAT IS THE YIELD PERCENTAGE IN THIS PRODUCTIO N PROCESS? A.11 I WILL UNDERSTAND IN THE SENSE THAT IF I PUT 100 KG RAW MATERIAL (CI SCRAP) IN THE BHATTI THEN IT WILL GIVE OUT 94 KG LIQUID IR ON AND AFTER THAT IT IS PUT IN THE MOLD AND THE BURNING LOSS IS 6% IN THIS PROCESS HE IS PRODUCTION IN-CHARGE AND HE RIGHTLY SAID THAT THERE IS BURNING LOSS OF 6%, HE EXPLAINED THAT IF RAW MATERIAL I.E. CI SCRAP OF 100 KG IS MELTED IN BHATTI, IT WILL GIVE OUT LIQUID IRON WEIGHING 94 KG, THUS, HE RIGHTLY SAID T HE BURNING LOSS AT 6%; HOWEVER, AS EXPLAINED ABOVE, THE TOTAL LOSS IS ABOUT 10% TO 12% . . 5. DURING THE COURSE OF SURVEY, STATEMENT OF SH. SATISH N NAIR, U/S. 131 WAS ALSO RECORDED. HE IS WORKING AS AN ASST. MANAGER IN THE COMPANY. IN HIS REPLY TO Q. NO. 17 OF THE STATEMENT HE CONFIRMED STATEMENT OF SH. VIKRAMA DITYA UPADHYAYA THAT NO SORT OF REGISTERS OR RECORDS ARE MAINTAINED FOR INPUT AS WE LL AS OUTPUT I.E. FOR RAW MATERIALS AND PRODUCTION. IN REPLY TO Q. NO. 18. HE DEPOSED THAT ON THE INSTRUCTION FROM THE DIRECTORS HE MAKES ENTRY IN THE PRODUCTION REGISTER ON THE BA SIS AFFIXED PERCENTAGE, HE FURTHER EXPLAINED THAT IF CONSUMPTION OF RAW MATERIALS IS S HOWN 1 00 KG, FINAL PRODUCTION IS SHOWN 89 KG. BURNING LOSS IS SHOWN 8 KG, WASTE MATE RIALS IS SHOWN 2 KG. AND GENERATION IT(SS)A NOS. 484 TO 487/AHD/12 & 526 TO 529/ A/12, 477 TO 483/A/12 519 TO 525/A HD/12 . A.YS. 2004 -05 TO 2010-2011 8 OF SCRAP IS SHOWN 1 KG. THIS RATIO OF PRODUCTION AN D LOSSES IS FOLLOWED SINCE INCEPTION OF THE COMPANY. OUR REPLY - SH. SATISH NAIR STATED THAT THERE IS TOTAL LOSS OF 11%, THE AUTHORIZED OFFICER ASKED HIM THAT THERE IS NO REGISTER OF INPUT OR OUT PUT IS MAINTAINED AND CALLED FOR TO REPLY, IT IS SUBMITTED THAT THE COMPANY IS MAINTAIN ING COMPLETE INPUT AND OUTPUT REGISTERS AS EXCISE REGISTER IN FORM 4, HE ALSO ANSWERED THAT THE BURNING LOSS, SLAGING LOSS, AND WASTAGE ARE SEPARATELY, WHICH IS TRUE TO THE BEST O F HIS KNOWLEDGE, HE STATED THAT THE ACTUAL PRODUCTION AS PER FACTORY OR THE PRODUCTION FIGURE IN THE BOOKS ARE NOT SAME, IS THE ANSWER PUT IN HIS MOUTH THROUGH QUESTION, AS IN THE SEARCH & SURVEY, NOT A SINGLE RUPEE MATERIAL IS FOUND RELATED TO UNACCOUNTED PRODUCTION . 6. YOU ARE REQUESTED TO SHOW CAUSE WHY ASSESSMENT SHOULD NOT BE COMPLETED TAKING THE YIELD AT 94% AND RESULTANT DIFFERENCE MAY BE TREATE D AS UNDISCLOSED PRODUCTION AND SALES THEREOF. YOUR REPLY MUST REACH THIS OFFICE WITHIN T HREE DAYS OF RECEIPT OF THIS LETTER IN THE ABSENCE OF IT ADDITION WILL BE MADE BY DISALLOWING EXCESS BURNING LOSS. OUR REPLY - IT IS QUITE SURPRISING THAT THE LD AO HAS ASKED QUESTIONS RUNNING IN 15 PAGES OR MORE, IN THOSE QUESTIONS, YOUR GOODSELF HAS ASKE D ABOUT REPLIES IN STATEMENTS, HOWEVER, YOUR GOODSELF HAS NOT CALLED FOR ANY EXPLA NATIONS ON THE STATEMENT OF SH. SANJAY RATHOD IN POST-SEARCH PROCEEDINGS BEFORE ADIT, BHAV NAGAR ON 06-04-2010, IN CONNECTION TO THE BURNING LOSS, IN REPLY TO QN. 16, SH. SANJAY RATHOD, DIRECTOR OF THE COMPANY STATED THAT THE BURNING LOSS IS ABOUT 6%, WHEREAS THE TOTAL LOSS IS 10% TO 12%, THE REPLY TO THE QN. 16 IS REPRODUCED HEREUNDER: Q. 16 DURING THE COURSE OF SURVEY AT FACTORY PREMISES OF SANJAY CASTING (IND.) PVT LTD. STATEMENT OF SHRI VIKRAMADI TYA UPADHYAY PRODUCTION IN-CHARGE OF YOUR COMPANY WAS RECORDED U/S 131 OF THE ACT. IN REPLY TO Q.I 1 HE SPECIFICALLY STATED THAT BURNING LOSS IN THE PRODUC TION PROCESS IS 6%. FURTHER IN REPLY TO Q. NO. 6 & 9 HE DEPOSED THAT NO RECORDS ARE MAINTAINED IN RESPECT OF RAW MA TERIAL AND PRODUCTION. IN REPLY TO Q. NO. 10 HE STATED THA T IT(SS)A NOS. 484 TO 487/AHD/12 & 526 TO 529/ A/12, 477 TO 483/A/12 519 TO 525/A HD/12 . A.YS. 2004 -05 TO 2010-2011 9 WHENEVER THE MANAGEMENT ASKED ABOUT THE PRODUCTION HE REPORTS THE FIGURES OF PRODUCTION ON ESTIMATED BASI S AFTER PHYSICAL INSPECTION. IN ADDITION TO THE STATEMENT O F SHRI UPADHYAY, STATEMENT OF SHRI SATISH NAIR, ASST. MANA GER OF YOUR COMPANY WAS ALSO RECORDED. IN REPLY TO Q. NO. 17 HE CONFIRMED THE STATEMENT OF SHRI UPADHYAY. ALSO IN R EPLY TO Q. NO. 18. HE STATED THAT ON THE INSTRUCTION FROM T HE DIRECTOR HE MAKES THE ENTRY IN THE PRODUCTION REGIS TER ON THE BASIS AFFIXED PERCENTAGE. THE STATEMENT OF SHRI UPADHYAY AND SHRI NAIR ARE SHOWN TO YOU. IN LIGHT O F ABOVE PLEASE EXPLAIN THE FACT ABOUT THE ACTUAL BURN ING LOSS IN THE PRODUCTION PROCESS. A. 16 SHRI UPADHYAY STATED THAT IF 100 KG CI SCRAP IS POU RED IN FURNISH THEM IN THE MELTING PROCESS 94 KG LIQUID IR ON RECEIVED IS PERFECTLY RIGHT. AS THERE IS 6 % BURNIN G LOSS, THEREFORE THE PROCESS OF SLATING IS CARRIED OUT WHI CH GAVE THE IMPURE MATERIAL SEPARATE FROM IRON THE LOSSES A RE NEAR ABOUT 2%. OTHER THAN THIS IN THE LOADING, UNLOADING AND THE BREAKING LOSS. LOSSES UPTO 0.5% IN POURING LIQUID I RON IN PATTERN/MOLTS. SIMILARLY TO MAKE THE PRODUCT FINISH ED THERE ARE LOSSES IN CHIPPING PROCESS, GRINDING PROCESS AN D MACHINERY PROCESS WHICH IS APPOX. 1.25% TO 1.5 %. T HUS IN THE INDUSTRY AS A WHOLE MANUFACTURING CT. MOULD CAS TING THE BURNING LOSS/WASTAGE RUNS BETWEEN 10% TO 12% . AS FAR AS STATEMENT OF SHRI SATISH NAIR ARE CONCERNED. HE IS NOT A MAN OF PRODUCTION. HE LOOKS AFTER DELIVERIES ONLY T HEREFORE HIS STATEMENT ON SUCH A TECHNICAL ISSUES IS OUT OF HIS KNOWLEDGE, THEREFORE WE ARE NOT AGREE WITH HIS STAT EMENT. IN THIS REGARD TO EXPLAIN BURNING LOSS AND WASTAGE WE ARE FURNISHING A REPLY TODAY ALONG WITH A CERTIFICATE O F CHARTER IT(SS)A NOS. 484 TO 487/AHD/12 & 526 TO 529/ A/12, 477 TO 483/A/12 519 TO 525/A HD/12 . A.YS. 2004 -05 TO 2010-2011 10 ENGINEER WHICH SHOWS THAT THE LOSSES IN CASTING IND USTRY RANGES BETWEEN 10% TO 12%. THUS, IN THE ABOVE STATEMENT, THE BURNING LOSS AND TOTAL LOSS EXPLANATIONS ARE GIVEN BY DIRECTOR, SH. SANJAY RATHOD, HOWEVER, IT IS QUITE S URPRISING WHY YOUR GOODSELF IS NOT PUTTING THIS QUESTION IN THE ABOVE QUESTIONNAIRE AN D WHEN THE REPLY IS IN THE ABOVE STATEMENT, WHY YOUR GOODSELF IS HARASSING THE ASSES SEES. IT IS FURTHER SUBMITTED THAT NOT ONLY IN STATEMENT, BUT ALSO IN EXPLANATIONS, LETTER DATED 08- 04-2010, VIDE SERIAL NO. 20, EXPLANATION ON BURNING LOSS WAS FILED, COPY ATTACHED EXB-2, THE CONTENTS OF THE SAID LETTER ARE REPRODUCED HERE UNDER: YOUR GOODSELF HAS CALLED FOR TO FILE DETAILS OF BUR NING LOSS AND JUSTIFICATION WITH REGARD TO BURNING LOSS SHOWN IN THE BOOKS OF A/CS. IN THIS REGARD, IT IS FURNISHED THAT THE FIRM IS MA NUFACTURING CI CASTING MOULDS, WHICH ARE SUPPLIED TO STEEL INDUSTRIES. THE MOULDS ARE PREPAR ED FROM SCRAP AND DURING THE PROCESS, THERE ARE LOSSES OF VARIOUS NATURES, WHICH INCLUDES LOADING UNLOADING LOSSES, BREAKAGE LOSSES, IN MELTING PROCESS DUST MUD GREECE RUBBERS ETC. RECEIVED WITH SCRAP VAPORIZED / OXIDIZED, IN PROCESS OF POURING METAL IN MOULDS SOM E QUANTITY FALL DOWN AND MIXED IN MUD, AT VARIOUS STAGES OF FINISHING THERE IS LOSSES OF QUANTITY DUE TO QUALITY CHECKING, FINAL FINISH ETC. THUS THE LOSSES ARE OCCURRED IN T HE PROCESS OF MFG. MOULDS FROM SCRAP. SIMILARLY AT THE TIME OF MELTING SCRAP THE WASTE IN THE NATURE OF SLAG SEPARATED FROM MELTED METAL. THE SUMMARY OF BURNING LOSS I WASTAGE / SLAG ETC. C LAIMED IN PAST YEARS IS AS UNDER: SN ASST. YEAR % OF LOSS/ WASTAGES / SLAG 1 2003-04 10.00% 2 2004-05 12.15% 3 2005-06 10.00% IT(SS)A NOS. 484 TO 487/AHD/12 & 526 TO 529/ A/12, 477 TO 483/A/12 519 TO 525/A HD/12 . A.YS. 2004 -05 TO 2010-2011 11 4 2006-07 10.00% 5 2007-08 10.00% 6 2008-09 10.00% 7 2009-10 10.00% IN THIS REGARD WE ARE FURNISHING HEREWITH CERTIFICA TE OF SHRI DEEPAK SHAH, CHARTERED ENGINEER, EXPLAINING THE PROCESS, NATURE OF LOSSES OCCURRED AT EACH PROCESS, PERCENTAGE OF WASTAGES / LOSSES AT EACH STAGE. THE CERTIFICATE IS PROVIDED AFTER COMPLETE VERIFICATION, SAMPLING OF EACH PROCESS, THE BURNING LOSS IN THE R ANGE OF 10% TO 12% AS CERTIFIED BY HIM IS TREND OF INDUSTRY. IN VIEW OF THE ABOVE IT I S FURNISHED THAT THE BURNING LOSS / WASTAGES / SLAG CLAIMED ARE GENUINE AND AS PER TREN D OF INDUSTRY. IN THIS REGARD WE ARE FURNISHING HEREWITH CERTIFICA TE OF SHRI DEEPAK SHAH, CHARTERED ENGINEER EXB-3, EXPLAINING THE PROCESS, NATURE OF L OSSES OCCURRED AT EACH PROCESS, PERCENTAGE OF WASTAGES / LOSSES AT EACH STAGE. THE CERTIFICATE IS PROVIDED AFTER COMPLETE VERIFICATION, SAMPLING OF EACH PROCESS, THE BURNING LOSS IN THE RANGE OF 10% TO 12% AS CERTIFIED BY HIM IS TREND OF INDUSTRY. IN THIS REGARD, IT IS SUBMITTED THAT THE OVERALL YI ELD POSITION/ PRODUCTION LOSS POSITION AS PER AUDITED ACCOUNTS ARE ENCLOSED EXB-4, THE SUMMAR Y OF THE SAME IS AS UNDER: SN PARTICULARS UNIT TOTAL A.Y. 2003-04 A.Y. 2004-05 A.Y. 2005-06 A.Y. 2006-07 1 CONSUMPTION OF RAW MATERIAL INCLUSIVE OF CAPTIVE CONSUMPTION OF WASTE & SCRAP M.T. 2286.154 2980.510 4020.175 6133.550 2 PRODUCTION OF C.I. CASTING/ MOULDS, COUPLINGS, LINES, DOORS ETC. M.T. 2034.680 2589.382 3577.950 5458.860 3 % OF PRODUCTION M.T. 89.00 86.88 89.00 89.00 IT(SS)A NOS. 484 TO 487/AHD/12 & 526 TO 529/ A/12, 477 TO 483/A/12 519 TO 525/A HD/12 . A.YS. 2004 -05 TO 2010-2011 12 4 PRODUCTION OF WASTE & SCRAP, SLAG, AND SHORTAGES - DURING THE PROCESS M.T. 251.474 391.128 442.325 674.690 5 % OF LOSS - 11.00 13.12 11.00 11.00 SN PARTICULARS UNIT TOTAL A.Y. 2007-08 A.Y. 2008-09 A.Y. 2009-10 A.Y. 2010-11 1 CONSUMPTION OF RAW MATERIAL INCLUSIVE OF CAPTIVE CONSUMPTION OF WASTE & SCRAP M.T. 5300.240 4391.420 5015.000 4591.009 2 PRODUCTION OF C.I. CASTING/ MOULDS, COUPLINGS, LINES, DOORS ETC. M.T. 4717.220 3908.365 4463.350 4085.990 3 % OF PRODUCTION M.T. 89.00 89.00 89.00 89.00 4 PRODUCTION OF WASTE & SCRAP, SLAG, AND SHORTAGES - DURING THE PROCESS M.T. 583.020 483.055 551.650 505.019 5 % OF LOSS M.T. 11.00 11.00 11.00 11.00 IN VIEW OF THE ABOVE, IT IS SUBMITTED THAT THE BURN ING LOSS IS FROM 10% TO 12%, THERE IS NO THUMB RULE, BUT IT INCREASES OR DECREASES ON THE QU ALITY OF SCRAP RECEIVED FROM MELTING. THE MELTING LOSS SHOWN BY 11% ON AVERAGE IS VERY RE ASONABLE AND LOOKING TO THE TREND OF INDUSTRY. UNDER SUCH CIRCUMSTANCES, IT IS PRAYED THAT NO ADDI TION ON ACCOUNT OF YIELD BY TREATING THE DIFFERENCE OF 94% LESS 89% MAY KINDLY BE MADE, AS THE ASSESSEE HAS EXPLAINED THE SAME TO THE ADIT, BHAVNAGAR, SH. LALIT JAIN, WHO HA S RECORDED STATEMENT OF SH. SANJAY RATHOD AND ALSO KEPT EXPLANATION ON RECORD. 5.1 THE REPLY OF THE ASSESEE IS CAREFULLY EXAMINED AND NOT FOUND ACCEPTABLE. IT IS NOTICED THAT DURING THE POST SEARCH PROCEEDING SH S ANJAY H RATHOD IN HIS STATEMENT RECORDED U/S. 131 OF THE ACT ON 08/04/10 WAS CONFRO NTED ON THE STATEMENTS BY SH IT(SS)A NOS. 484 TO 487/AHD/12 & 526 TO 529/ A/12, 477 TO 483/A/12 519 TO 525/A HD/12 . A.YS. 2004 -05 TO 2010-2011 13 VIKRAMADITYA UPADHYAY AND SH SATISH NAIR ABOUT THE BURNING LOSS. SH. SANJAY RATHOD IN REPLY TO QUESTION NO 16 HAS SUBMITTED AS UNDER: 'SH UPADHYAY STATED THAT IF 100 KG CI SCRAP IS POURED IN FURNACE THEN IN THE MELTING PROCESS 94 KG LIQUID IRON IS RECEIVED IS PERFECTLY RIGHT AS THERE IS 6% BURNING LOSS} THEREAFTER THE PROCESS OF SLAGGING IS CARRIED OUT W HICH GIVE THE IMPURE MATERIAL SEPARATE FROM IRON. THE LOSSES ARE NEAR ABOUT 2%. OTHER THAN STATING THERE IS A LOSS OF APROX 1.5% IN THE LOADING, UNLOADING AND THE BREAKING LOSS. LO SSES UP TO 0.5% IN POURING LIQUID IRON IN PATTERNS/ MOULDS. SIMILARLY TO MAKE THE PRODUCT FINISHED THERE IS LOSSES IN CHITTING PROCESS, GRINDING PROCESS AND MACHINING PROCESS WHI CH IS ABOUT 1.25 TO 1.5%. THUS IN THE INDUSTRIES IN THE OWN MANUFACTURING THE MOULD C I CASTING THE BURNING LOSS/WASTAGE RUNS BETWEEN 10% TO 12%. AS FAR AS STATEMENT OF SH. SATISH NAIR CONCERNE D HE IS NOT A MAN OF PRODUCTION, HE LOOKS AFTER DELIVERY ONLY. THEREFORE HIS STATEMENT ON SUCH A TECHNICAL ISSUE IS OUT OF HIS KNOWLEDGE. THEREFORE WE DO NOT AGREE WITH HIS STATE MENT. IN THIS REGARD TO EXPLAIN BURNING LOSS AND WASTING LOSS WE ARE FURNISHING A R EPLY TODAY ALONG WITH A CERTIFICATE OF CHARTED ENGINEER WHICH SHOWS THAT THE LOOSES IN THE CASTING INDUSTRY RANGES BETWEEN 10 TO 12%.' 8. THE DETAILED EXPLANATION OF THE ASSESSEE DID NOT FI ND ANY FAVOUR WITH THE A.O WHO WAS OF THE FIRM BELIEF THAT THE ADMISSI ON OF THE PRODUCTION IN-CHARGE, SHRI UPADHAYA IS TRUE AND CORRECT AND AL LOWED THE SAME @ 6%. HOWEVER, THE A.O ESTIMATED THE BURNING LOSS @ 8 % AND MADE AN ADDITION ON ACCOUNT OF UNACCOUNTED PRODUCTION IN TH E IMPUGNED ASSESSMENT YEARS. 9. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) A ND REITERATED WHAT HAS BEEN STATED BEFORE THE A.O. ONCE AGAIN, THE ENT IRE MANUFACTURING PROCESS WAS EXPLAINED. IT WAS BROUGHT TO THE KNOWLE DGE OF THE LD. IT(SS)A NOS. 484 TO 487/AHD/12 & 526 TO 529/ A/12, 477 TO 483/A/12 519 TO 525/A HD/12 . A.YS. 2004 -05 TO 2010-2011 14 CIT(A) THAT SO FAR AS ADMISSIBILITY OF PRODUCTION LOSS IS CONCERNED. MINISTRY OF STEEL AND HEAVY INDUSTRIES VIDE CIRCULA R NO. PS-55(6)62, DATED 19.03.1963 AND PC/P&P/6(1)/GEN/1363, DATED 31 .03.1989 HAS CONSIDERED THE BURNING LOSS OF 10% FROM RE-ROLLING OF BILLETS, BLOOMS AND SLABS TO FINISHED PRODUCTS AS NORMAL. RELIANCE WERE PLACED ON THE DECISIONS OF CENTRAL EXCISE TRIBUNAL CESTAT IN THE CASE OF RAM STEEL ROLLING & FORGING MILLS 2006 (204) ELT 87 AND NARBA DA STEELS LTD. 2007 (217) ELT 469. 10. AFTER CONSIDERING THE FACTS AND THE SUBMISSIONS AND ALSO THE DECISIONS OF THE CESTAT RELIED UPON BY THE ASSESSEE . THE LD. CIT(A) CALLED FOR THE EXCISE REGISTER FOR THE PRODUCTION O F THE CASTINGS AND FOUND THAT IN ALL THE LOTS LOSS OF 11% HAS BEEN SHO WN. THE LD. CIT(A) WAS NOT CONVINCED WITH THE LOSS OF 11% COMING IN TH E CASE OF BOTH THE ASSESSEES UNDER CONSIDERATION. THE LD. CIT(A) OBSER VED THAT IT APPEARS THAT THE PRODUCTION LOSS IS ENTERED AT THE INSTRUCT IONS OF THE DIRECTORS AND THE PARTNERS. HOWEVER, IN SO FAR AS THE CLAIM O F LOSS IS CONCERNED. THE LD. CIT(A) ACCEPTED THE DECISION OF CESTAT IN T HE CASE OF RAM STEEL ROLLING MILLS (SUPRA) AND NARBADA STEELS LTD. (SUPRA) WHEREIN PRODUCTION LOSS OF 10% HAS BEEN HELD TO BE REASONAB LE AND ACCORDINGLY DIRECTED THE A.O TO ADOPT THE PRODUCTIO N LOSS OF 10% AS AGAINST 8%. 11. AGGRIEVED BY THIS, THE ASSESSEE AND THE REVENUE ARE IN APPEAL BEFORE US. LET, US FIRST SEE HOW THE PRODUCTION LOS S HAS BEEN WORKED OUT BY THE ASSESSEES, THE SAME IS SHOWN AS UNDER:- IT(SS)A NOS. 484 TO 487/AHD/12 & 526 TO 529/ A/12, 477 TO 483/A/12 519 TO 525/A HD/12 . A.YS. 2004 -05 TO 2010-2011 15 WORKING OF PRODUCTION LOSS IN THE CASE OF SANJAY CA STING (I) PVT. LTD . SR. NO. DESCRIPTION UNITS IN M.T. A.YS. 2007-08 2008-09 2009-10 2010-11 1 CONSUMPTION OF RAW MATERIALS INCLUSIVE OF CAPTIVE CONSUMPTION OF WASTE AND SCRAP 1317.34 4225.128 7315.197 11026.76 2 CAPTIVE CONSUMPTION OF WASTE AND SCRAP 13.175 -- 73.155 110.265 3 CONSUMPTION OF RAW MATERIALS INCLUSIVE OF CAPTIVE CONSUMPTION OF WASTE AND SCRAP (1-2) 1304.165 4225.128 7242.042 10916.495 4 PRODUCTION OF FINISHED GOODS 1159.26 3760.37 651 0.51 9813.81 5 % OF PRODUCTION (4./3.) 88.89% 89.00% 89.90% 89.9 0% 6 LOSS DURING PROCESS 7 % OF ACTUAL LOSS (6./3.) 11.11% 11.00% 10.10% 10. 10% WORKING OF PRODUCTION LOSS IN THE CASE OF SANJAY CA STING SR. NO DESCRIPTION UNITS IN M.T . A.YS. 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 1 CONSUMPTION OF RAW MATERIALS INCLUSIVE OF CAPTIVE CONSUMPTION OF WASTE AND SCRAP 4020.175 6133.55 5300.24 4391.42 5015 4591.009 2 CAPTIVE CONSUMPTION OF WASTE AND SCRAP 40.205 61.335 52.995 43.915 50.15 45.91 3 CONSUMPTION OF RAW MATERIALS INCLUSIVE OF CAPTIVE CONSUMPTION OF WASTE AND SCRAP (1- 2) 3979.97 6072.215 5247.245 4347.505 4964.85 4545.099 4 PRODUCTION OF FINISHED GOODS 3577.95 5458.86 4717.22 3908.365 4463.35 4085.99 IT(SS)A NOS. 484 TO 487/AHD/12 & 526 TO 529/ A/12, 477 TO 483/A/12 519 TO 525/A HD/12 . A.YS. 2004 -05 TO 2010-2011 16 5 % OF PRODUCTION (4./3.) 89.90% 89.90% 89.90% 89.90% 89.90% 89.90% 6 LOSS DURING PROCESS 402.02 613.355 530.025 439.14 501.5 459.109 7 % OF ACTUAL LOSS (6./3.) 10.10% 10.10% 10.10% 10.10% 10.10% 10.10% 12. A PERUSAL OF THE AFOREMENTIONED CHART SHOWS THAT TH E ASSESSEE HAS BEEN CONSISTENTLY SHOWING LOSS WHICH RANGES BET WEEN 11.11% TO 10.10%. IT CAN ALSO BE SEEN THAT THE LOSSES ARE AT FIXED MARGIN AND THE ASSESSEES ARE SHOWING THEM SO ACCURATELY YEAR A FTER YEAR. HERE, WE AGREE WITH THE OBSERVATIONS OF THE FIRST APPELLA TE AUTHORITY THAT THE LOSSES SHOWN IN THE PRODUCTION REGISTER ARE MANIPUL ATED. 13. HOWEVER, THE PRODUCTION IN-CHARGE, SHRI UPADHAYA HA D ADMITTED LOSS @ 6% , WHEREAS THE A.O HAS ESTIMATED THE LOSS @ 8% , WHICH MEANS THAT THE A.O HIMSELF WAS CONVINCED THAT BESID ES MELTING LOSS, THERE ARE ADDITIONAL LOSSES ALSO. 14. THIS LEAVES US TO THE ESTIMATION OF THE PRODUCTION LOSS. THE UNDISPUTED FACT IS THAT THE A.O IN HIS ASSESSMENT O RDER HAS NOT BROUGHT ANY COMPARABLE CASES ON RECORD TO JUSTIFY T HE ESTIMATION WHEREAS WE FIND THAT THE ESTIMATION OF THE LD. CIT( A) IS WELL SUPPORTED BY THE DECISIONS OF THE CESTAT (SUPRA) WHICH ARE IN TURN SUPPORTED BY THE CIRCULAR OF MINISTRY OF STEEL AND HEAVY INDUSTR IES. 15. IN OUR CONSIDERED OPINION, SINCE THE FINDINGS OF TH E LD. CIT(A) IS BASED ON COMPARABLE CASES QUA THE CIRCULAR OF THE M INISTRY, WE DECLINE TO INTERFERE WITH THE FINDINGS OF THE LD.CIT(A). IN THE RESULT, THE APPEALS OF THE ASSESSEE AND THE REVENUE ARE DISMISS ED. IT(SS)A NOS. 484 TO 487/AHD/12 & 526 TO 529/ A/12, 477 TO 483/A/12 519 TO 525/A HD/12 . A.YS. 2004 -05 TO 2010-2011 17 16. BEFORE PARTING, THE ASSESSEE HAS ALSO CHALLENGED TH E ASSESSMENT ORDER PASSED U/S. 153C OF THE ACT ON THE GROUND THA T NO INCRIMINATING MATERIAL WAS FOUND. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE STATED THAT HE IS NOT PRESSING THIS GROUND AND THE SAME IS ACCORDINGLY DISMISSED AS NOT PRESSED. ORDER PRONOUNCED IN OPEN COURT ON 17 - 03 - 2016 SD/- SD/- (RAJPAL YADAV) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD