M/s. Rm. K.V. Fabrics, CHENNAI V. DCIT, CHENNAI

MA 354/CHNY/2017

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6700 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-06-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 09-03-2018
• Assessment Year: 2012-2013
• Appeal Filed On: 30-11-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: R VIJAYARAGHAVAN

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . , . , BEFORE SHRI ABRAHAM P. GEORGE , ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY , JUDICIAL MEMBER M .P.NO . 354 / CHNY /2017 [IN I.T.A.NO. 2 471 / CHNY /20 1 6 ] ASSESSMENT YEAR: 2012 - 13 M/S. RM K.V. FABRICS, 176F , TRIVANDRUM ROAD, TIRUNELVELI - 627 003. [PAN: A AHFB 70 67 M ] VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE RANGE - 1(1 ) , CHENNAI . ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI R. VIJAYARAGHAVAN , ADVOCATE / RESPONDENT BY : SHRI AR.V.SREENIVASAN , J CIT / DATE OF HEARING : 09.03.2018 / DATE OF P RONOUNCEMENT : 06 .0 6 .201 8 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : THIS MISCELLANEOUS PETITION IS FILED BY THE ASSESSEE. THE GRIEVANCE OF THE ASSESSEE IS THAT THE TRIBUNAL IN I.T.A. NO. 2471/CHNY/2016 DATED 26.07.201 7 PASSED THE ORDER WITH REGARD TO THE ISSUE OF CONFIRMATION OF ADDITION TOWARDS VALUATION OF CLOSING STOCK ERRONEOUSLY. THE LD. AR O F THE ASSESSEE SUBMITTED THAT DURING THE RELEVANT PREVIOUS YEAR, THE ASSES SEE FIRM WAS TAKEN OVER BY A COMPANY CALLED M / S. R MKV FABRICS P. LTD. AND M .P. NO . 354 / CHNY/2017 2 THEREFORE, THE STOCK WAS TAKEN OVER BY THE SAID COMPANY. AS PER LD. AR, IT WAS A QUESTION OF SALE OF STOCK AND NOT VALUATION OF STOCK. ACCORDING TO THE LD. AR, THE TRIBUNAL COMMITTED MISTAKE IN DISMISSING THE APPEAL FILED BY THE ASS ESSEE. 2. PER CONTRA, THE LD. DR SUBMITTED THAT THERE WAS NO MISTAKE IN THE ORDER OF THE TRIBUNAL WARRANTING INTERFERENCE UNDER SECTION 254(2) OF THE ACT. 3. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE ORDER OF THE TRIBUNAL. GROUNDS TAKEN BY THE ASSESSEE ARE TOTALLING TO 3, WHEREIN GROUND NO. 1 & 3 ARE GENERAL IN NATURE AND GROUND NO. 2 READS AS UNDER: 2. VALUATION OF CLOSING STOCK: 2.1 THE CIT(APPEALS) ERRED IN CONFIRMING THE ORDER OF THE ASSESSING OFFICER IN MAKING AN ADDITION OF .251214/ - TO THE CLOSING STOCK. 4. IT IS CLEAR FROM THE ABOVE GROUND THAT THE ASSESSEE WAS AGGRIEVED BY THE METHOD OF VALUATION OF STOCK. NO THING WHAT SO EVER MENTIONED IN THE GROUND WITH REGARD TO TAKEOVER OF THE ASSESSEE BY A COMPANY FOR SALE OF STO CK TO THE SAID COMPANY. IN THE CIRCUMSTANCES, WE ARE OF THE OPINION THAT THE FINDINGS OF THE TRIBUNAL AS CONTAINED IN PARA 5 AND 6 ARE IN ORDER. WE DO NOT FIND ANY MISTAKE IN THE ORDER OF THE TRIBUNAL OF THE NATURE MENTIONED BY THE ASSESSEE MUCH LESS ANY M ISTAKE GLARING ON RECORD. M .P. NO . 354 / CHNY/2017 3 5 . IN THE RESULT, THE MP FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON THE 06 TH JUNE , 201 8 AT CHENNAI. SD/ - SD/ - ( ABRAHAM P. GEORGE ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNAI, DATED, THE 06.06 . 2 01 8 VM/ - / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.