The ACIT, Circle II, RAJKOT-GUJARAT V. M/s Turbo Bearings Pvt Ltd, RAJKOT-GUJARAT

MA 57/RJT/2010

• Counselvise Citation: [2011] 123 COUNSELVISE.COM (IT) 6745 (ITAT-RAJKOT)
• Duration Of Justice: 8 month(s) 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 24-06-2011
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 17-06-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 06-10-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Assessee Lawyers: GB PARIKH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI A.L. GEHLOT (AM) AND SHRI N.R.S. GANESA N (JM) M.A. NO.57/RJT/2010 (ARISING OUT OF I.T.A. NO.447/RJT/2008) (ASSESSMENT YEAR 2005-06) THE ACIT, CIR.2 VS M/S TURBO BEARINGS PVT LTD RAJKOT 250/251, Q-ROAD, AJI GIDC INDUSTRIAL AREA, RAJKOT PAN :AAACT7854N (APPLICANT) (RESPONDENT) APPLICANT BY : SHRI AVINASH KUMAR RESPONDENT BY: SHRI GB PARIKH O R D E R PER N.R.S. GANESAN, JM THE REVENUE HAS FILED THE PRESENT MISCELLANEOUS AP PLICATION ON THE GROUND THAT THERE IS AN ERROR IN THE ORDER OF THIS TRIBUNAL BOTH DATED 17-12-2009. 2. SHRI AVINASH KUMAR, THE LD.DR SUBMITTED THAT THI S TRIBUNAL, WHILE CONSIDERING GROUND NO.7 RAISED BY THE ASSESSEE CONF IRMED THE VALUATION OF CLOSING STOCK IN PROCESS FOR THE YEAR UNDER CONSIDE RATION. REFERRING TO THE ORDER OF THE TRIBUNAL FOR THE ASSESSMENT YEAR 2004-05 THE LD.REPRESENTATIVE SUBMITTED THAT FOR THE ASSESSMENT YEAR 2004-05 THE VERY SAME ISSUE WAS REMANDED BACK TO THE FILE OF THE ASSESSING OFFICER. ACCORDING TO THE LD.REPRESENTATIVE, WHEN THE VALUATION OF CLOSING STOCK FOR THE ASSESSMENT YEAR 2004-05 WAS REMANDED BACK TO THE FILE OF THE ASSESSING OFFICER IT WAS FAIR AN D PROPER TO REMAND BACK THE MATTER FOR ASSESSMENT YEAR 2005-06 THEREFORE, TO TH IS EXTENT, THERE IS AN ERROR IN THE ORDER OF THE TRIBUNAL. 3. WE HAVE HEARD SHRI GB PARAIKH, THE LD.COUNSEL FO R THE ASSESSEE. ACCORDING TO THE LD.COUNSEL THERE IS NO ERROR IN TH E ORDER OF THIS TRIBUNAL. REFERRING TO THE ORDER OF THIS TRIBUNAL FOR ASSESSM ENT YEAR 2004-05 THE MA NO.57/RJT/2010 2 LD.REPRESENTATIVE VERY FAIRLY SUBMITTED THAT THE MA TTER WAS REMANDED BACK TO THE ASSESSING OFFICER WITH REGARD TO VALUATION OF CLOSI NG STOCK AND CONSEQUENT TO THE ORDER OF THE ITAT THE ASSESSING OFFICER REVALUED TH E CLOSING STOCK AND RESTRICTED THE ADDITION TO THE EXTENT OF RS. 28,075 ONLY. THE REFORE, IF THE MATTER WAS TO BE REMANDED BACK TO THE FILE OF THE ASSESSING OFFICER FOR THE YEAR UNDER CONSIDERATION THE ASSESSEE NATURALLY WILL GET SOME MORE RELIEF, THEREFORE, THE ASSESSEE HAS NO OBJECTION FOR REMANDING BACK THE MA TTER FOR THE YEAR UNDER CONSIDERATION ALSO. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND HAVE ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. ADMITTED LY, FOR THE ASSESSMENT YEAR 2004-05, THE TRIBUNAL REMANDED BACK THE MATTER TO T HE FILE OF THE ASSESSING OFFICER WITH REGARD TO THE VALUATION OF CLOSING STO CK. THE ASSESSMENT YEAR UNDER CONSIDERATION IS IMMEDIATELY THE ASSESSMENT YEAR FO LLOWING ASSESSMENT YEAR 2004-05. THEREFORE, WHATEVER CLOSING STOCK DETERMI NED FOR THE ASSESSMENT YEAR 2004-05 WILL BE THE OPENING STOCK FOR THE ASSESSMEN T YEAR 2005-06 I.E. FOR THE YEAR UNDER CONSIDERATION. THEREFORE, THE DETERMINA TION OF CLOSING STOCK FOR THE ASSESSMENT YEAR 2004-05 WILL HAVE ITS IMPACT ON THE CLOSING STOCK FOR THE ASSESSMENT YEAR 2005-06. WHEN THE MATTER WAS REMAN DED BACK TO THE FILE OF THE ASSESSING OFFICER FOR ASSESSMENT YEAR 2004-05, IN ALL FAIRNESS, THE ISSUE OF VALUATION OF CLOSING STOCK FOR THE YEAR UNDER CONSI DERATION, I.E. ASSESSMENT YEAR 2005-06 ALSO NEEDS TO BE REMANDED BACK TO THE FILE OF THE ASSESSING OFFICER TO DETERMINE THE CLOSING STOCK VALUATION AFTER TAKING INTO CONSIDERATION THE CORRECT OPENING STOCK AND TO ARRIVE AT THE CORRECT CLOSING STOCK VALUATION FOR THE YEAR UNDER CONSIDERATION. TO THIS EXTENT, IN OUR OPINIO N, THERE IS AN ERROR IN THE ORDER OF THIS TRIBUNAL FOR THE ASSESSMENT YEAR 2005-06. THE ASSESSEE HAS ALSO NO OBJECTION FOR REMANDING BACK THE MATTER FOR THE YEA R UNDER CONSIDERATION. ACCORDINGLY THE ORDER OF THE TRIBUNAL DATED 17-12-2 009 IS RECTIFIED AS UNDER: 5. THE FOLLOWING, ON PAGE 8 AT PARAGRAPH 30 OF THE TRIBUNAL ORDER DATED 17- 12-2009, SHALL BE DELETED: MA NO.57/RJT/2010 3 AFTER HEARING THE LEARNED DR AND ON PERUSAL OF THE WRITTEN SUBMISSIONS, WE FIND THAT THE CIT(A) HAS PASSED THE REASONED ORDER AND HENCE OUR REQUIREMENT IS NOT REQUIRED. T HE GROUND NO.7 IS THEREFORE DISMISSED. INSTEAD , THE FOLLOWING SHALL BE INCORPORATED AS PARAGRAPH 30 ON PAGE 8: AFTER CONSIDERING THE MATERIALS AVAILABLE ON RECOR D AND HEARING THE LD.DR WE FIND THAT FOR THE IMMEDIATELY PRECEDING AS SESSMENT YEAR 2004-05 THE ISSUE OF VALUATION OF CLOSING STOCK WAS REMANDED BACK TO THE FILE OF THE ASSESSING OFFICER. SINCE THE VA LUATION OF THE CLOSING STOCK FOR THE ASSESSMENT YEAR 2004-05 WILL HAVE ITS OWN IMPACT FOR THE ASSESSMENT YEAR 2005-06 AS AN OPENIN G STOCK, THE MATTER NEEDS TO BE CONSIDERED BY THE ASSESSING OFFI CER, FOR THE SAKE OF CONSISTENCY. ACCORDINGLY, THE ORDER OF LOW ER AUTHORITY IS SET ASIDE AND THE MATTER IS REMANDED BACK TO THE FILE O F THE ASSESSING OFFICER FOR RECONSIDERATION. 6. IT IS MADE CLEAR THAT THE OTHER PART OF THE ORDE R SHALL REMAIN AS SUCH WITHOUT ANY CHANGE. 7. IN THE RESULT, THE MISCELLANEOUS APPLICATION FIL ED BY THE REVENUE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 24-06-2011. SD/- SD/- (A.L. GEHLOT) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER RAJKOT, DT : 24 TH JUNE, 2011 PK/- MA NO.57/RJT/2010 4 COPY TO: 1. ASSESSEE 2. REVENUE 3. THE CIT(A)-III, RAJKOT 4. THE CIT-II, RAJKOT 5. THE DR, I.T.A.T., RAJKOT (TRUE COPY) BY ORDER ASSTT.REGISTRAR, ITAT, RAJKOT