M/s. Srinidhi Gold, Mandya V. ITO, Mandya

MA 107/BANG/2010

• Counselvise Citation: [2010] 123 COUNSELVISE.COM (IT) 5855 (ITAT-BANGALORE)
• Duration Of Justice: 24 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 13-12-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 20-02-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 19-11-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRABHAKAR REDDY J
• Assessee Lawyers: S VENKATESAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE K., JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER M.P. NO.107/BANG/2010 (ARISING OUT OF ITA NO.464/BANG/09) ASSESSMENT YEAR : 2006-07 M/S. SRINIDHI GOLD, V.V. ROAD, MANDYA. : APPLICANT VS. THE INCOME TAX OFFICER, WARD 1, MANDYA. : RESPONDENT APPLICANT BY : SHRI S. VENKATESAN, C.A. RESPONDENT BY : SHRI PRABHAKAR REDDY, JCIT(DR) O R D E R PER A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER THIS MISCELLANEOUS PETITION IS FILED BY THE ASSES SEE SEEKING RECALL OF THE ORDER OF THE TRIBUNAL DATED 24.09.2009 FOR R ECTIFICATION OF CERTAIN MISTAKES APPARENT FROM THE FACE OF THE RECORDS. 2. THE ASSESSEE SUBMITTED THAT THE QUANTITY OBSERVE D AS PER THE MATERIALS IMPOUNDED DURING SURVEY REPRESENTS QUANTI TY 18,382.87 GMS. OF GOLD ORNAMENTS WHEREAS THE WEIGHT OF 17,076.535 GMS . IS THE FIGURE TO THE AO ON THE BASIS OF WHICH HE HAS ARRIVED THE AVERAGE COST REPRESENTED THE M.P. NO.45/BANG/10 PAGE 2 OF 3 QUANTITY OF PURE GOLD CONTENT IN THE ORNAMENTS. TH EREFORE IF ONE HAS TO ASCERTAIN THE EXCESS/SHORTAGE OF THE CLOSING STOCK OF THE GOLD ORNAMENTS HIS QUANTITY OF 18,382.70 GMS. IS TO BE REDUCED WIT H THE QUANTITY OF COPPER ETC. IN WHICH CASE THERE IS NO WARRANT TO MAKE ADDI TION AS CONTENDED IN THE LETTER AND BEFORE THE LEARNED CIT(A). AS STATED IN THE APPELLANTS LETTER DATED 26/12/2008 ADDRESSED TO INCOME TAX OFFICER, W ARD 1, MANDYA, IF THE COPPER CONTENT OF 8.4% IS TO BE DEDUCTED THEN THE G OLD CONTENT WOULD BE 18,382.17 GMS. (-) 8.4% OF 18,382.817 GMS. = 16,838 .66 GMS. AS AGAINST THE QUANTITY REPORTED OF 17,076.535 WHICH IS MORE C ALLING FOR NO ADDITION AT ALL ON MERITS. NOTWITHSTANDING IT WAS NOT WARRANTE D IT HAD ACCEPTED FOR THE ADDITION. THE QUESTION AS TO HOW THE AVERAGE COST TO BE ARRIVED AT FOR VALUING CLOSING STOCK IS NOT IN ISSUE AT ALL. WHAT WAS IN ISSUE IS WHETHER ANY ADDITION IS WARRANTED ON ACCOUNT OF EXCESS QUAN TITY FOUND. HOWEVER THE CONSENT WAS GIVEN FOR ADDITION IN VIEW OF THE T AX NEUTRAL EFFECT AND THEREFORE IT WAS PLEADED IN VIEW OF THE CONSENT ADD ITION MIGHT BE RESTRICTED TO RS.7,76,665. 3. IT WAS FURTHER SUBMITTED THAT THE ITAT HAS NOT D EALT WITH THIS ASPECT OF THE MATTER WHETHER IF THE ADDITION WAS TO BE MAD E AT ALL AND SUCH ALLOWANCE HAD TO BE GIVEN TO THE WASTE ITEMS LIKE C OPPER, LAC, ETC. WHILE MAKING THE GOLD ORNAMENTS AT ALL. FAILURE TO DEAL WITH THIS ASPECT OF THE GROUND EXPRESSIVELY IS AN APPARENT MISTAKE ON THE F ACE OF THE RECORDS WHICH REQUIRES TO BE RECTIFIED. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. SINCE WE HAVE ALREADY ALLOWED THE MISCE LLANEOUS PETITION FILED BY THE REVENUE BY RECALLING THE ORDER OF THE TRIBUN AL DATED 24.9.2009 FOR M.P. NO.45/BANG/10 PAGE 3 OF 3 THE A.Y. 2006-07 IN THE ASSESSEES CASE, THIS MISCE LLANEOUS PETITION DOES NOT SURVIVE. HOWEVER, THE ASSESSEE IS AT LIBERTY T O RAISE ALL THE ISSUES MENTIONED SUPRA TO DEFEND ITS CASE AT THE TIME OF H EARING OF THE APPEAL. 5. IN THE RESULT, THE MISCELLANEOUS PETITION BY THE ASSESSEE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS 13 TH DECEMBER, 2010. SD/- SD/- ( GEORGE GEORGE K.) (A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 13 TH DECEMBER, 2010. DS/- COPY TO: BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE. 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE