ITO, WARD-3, NAMAKKAL V. SHRI K. PALANIVEL, RASIPURAM

MA 229/CHNY/2022

AI Insights

The case revolves around a miscellaneous application filed by the revenue against a Tribunal order concerning the valuation of closing stock for the assessment year 2013-14. The original dispute was about the method of valuing closing stock, where the assessee used a specific method that the Tribunal initially accepted. The revenue, in its application, argued for the adoption of the FIFO method, which would increase the taxable income. However, the Tribunal found that the revenue's application was essentially a request for a review of the order, which is not permissible under the statute.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135575 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 2 month(s) 5 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 20-04-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 20-04-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 14-02-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकर अपीलीय ’बी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय (ी वी. द ु गा. राव, ाियक सद1 एवं माननीय (ी मनोज कु मार अ6वाल ,लेखा सद1 के सम8। BEFORE HON’BLE SHRI V. DURGA RAO, JUDICIAL MEMBER AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM M.A.No.229/Chny/2022 (Arising out of ITA No. 405/Chny/2020) ( िनधा.रणवष. / Assessment Year:2013-14) Income Tax Officer Ward-2, Namakkali. बनाम/ V s. Shri K. Palanivel Prop. Sri Thirumurugan Commission Mundy, Namagiripettai Rasipuram Tk., Namakkal – 637 406. थायीलेखासं. /जीआइआरसं. /P A N/ G I R No . AR I P P - 4 7 5 6 - H (अ पीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Assessee by : None थ कीओरसे/Revenue by : Shri D. Hema Bhupal (JCIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 21-04-2023 घोषणाकीतारीख /Date of Pronouncement : 21-04-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member): 1. The captioned miscellaneous application has been preferred by revenue against Tribunal order passed on 06-07-2022 in assessee’s appeal ITA No.405/Chny/2020 for Assessment Year 2013-14. At the time of hearing, none appeared for assessee. Accordingly, the application was proceeded with the able assistance of Ld. Sr. DR who supported interference in the order as mentioned in the application. M.P No.229/Chny/2022 2 2. The prime argument made in the petition is that the rate of closing stock as adopted by Tribunal in Para-6 of Page No.9 is Rs.39.36 Kg. The assessee had purchased goods from 01-07-2012 to 10-08-2012. However, Tribunal has not considered FIFO method for valuation of closing stock. If the said method is adopted, the rate would be Rs.46.48 per Kg. and the taxable income would be more. Accordingly, a prayer has been made to recall the order. 3. Upon perusal of Tribunal order, it could be seen that the assessee was subjected to survey action and certain additions were made on account of stock while framing the assessment. The Ld. AO adopted rate of Rs.150/- per Kg. while valuing the stock. The Ld. CIT(A) granted partial relief to the assessee. Aggrieved, the assessee as well as revenue preferred further appeal. The Tribunal, in para-6 of the order, accepted the ground raised by the assessee and dismissed the ground raised by the revenue, in this regard. It was held by the bench that no infirmity could be found in the methodology of the assessee and therefore, the stock valuation as reflected by the assessee at year-end was to be accepted. This being so, the plea raised by the revenue in this application is nothing but a plea seeking review of the order and nothing more. The same is not permissible under statute. We do not find any mistake apparent from record which would require our indulgence u/s 254(2). M.P No.229/Chny/2022 3 4. In the result, the application stand dismissed. Order pronounced on 21 st April, 2023. Sd/- (V. DURGA RAO) ाियक सद1 /JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखासद1 /ACCOUNTANT MEMBER चे+ई/ Chennai; िदनांक/ Dated : 21-04-2023 EDN/- आदेशकीWितिलिपअ6ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant2. थ /Respondent 3. आयकरआयु4/ CIT4. िवभागीय ितिनिध/DR 5. गाड9फाईल/GF