TMI Blog2014 (4) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... er law - In case, this paper is not available in the assessment record, the addition already made will be treated as sustained – Decided in favour of Assessee. - ITA No.1387/Ahd/2010 & ITA Nos.2326/Ahd/2012 - - - Dated:- 20-12-2013 - D K Tyagi And T R Meena, JJ. For the Appellant : Shri P L Kureel, Sr.DR For the Respondent : Shri Ashwin Parekh, AR PER : T R Meena These quantum appeal and penalty appeal are filed by the assessee. These appeals are emanated from the order of The ld. CIT(Appeals)-I, Surat, order dated 23.03.2010 in quantum appeal and order dated 02.08.2012 in penalty appeal for A.Y. 2003-04. Both appeals were heard together and are being disposed of by way of this common order for the sake of convenience. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der and overlooking the complete evidences of purchases, sales and production submitted to Assessing Officer and CIT(A). The penalty of Rs.21,50,919/- should therefore, be deleted. 2. The A.O. observed that the assessee is in processing of fabric. There was an information from the Joint Commissioner (Prev.), Central Excise Customs, Surat-I vide letter F.No.IV/12-HPIU-I/01/2006-07-Pt-II dated 07.03.2008 that there was action by Central Excise Officers on the assessee namely M/s. K.D. Bhatia Dyeing Printing Mills Pvt. Ltd., having its office at P-3098, Surat Textile Market, Ring Road, Surat had cleared/removed total 836120 metres of manmade fabrics (Processed) valued at Rs.2,25,75,240/- @ Rs.27 per metre illicitly without payment of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p l account in respect unaccounted job charges receipts. Thus, he made addition of Rs.58,52,840/-. 3. Being aggrieved by the order of the A.O., the assessee carried the matter before the Hon'ble CIT(A) who had dismissed the assessee's appeal by observing as under : - 2.3 I have considered the submission made by the appellant and the observation of the A.O. During the action of the Central Excise Custom Authorities they found that the assessee had illicitly removed 836120 meters of manmade fabric without entering them in the excise records and without entering into the books of account. The appellant had agreed during the course of action whereby its director, Mr. Bhata, gave a statement agreeing to have removed the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in job work and was getting only job charges from the material belonged to outsider from where they get raw material. The ld. A.R. also drew our attention on page no. 17 of the submission and argued that the appellant had submitted all the information before the A.O. at the time of assessment proceeding. He further argued that various cases were detected by the Excise Department of similar nature on which gross profit @ 23% was applied and he relied upon in ITAT, Ahmadabad A' Bench decision in case of Sangam Prints Pvt. Ltd. vs. ACIT, Surat, in ITA Nos. 1897 2282/Ahd/2007 for A.Y. 2003-04, wherein he proposed gross profit in p l account @ 23% which has accepted by the ITAT. 4(i). At the outset, ld. Sr. D.R. argued that A.O. as we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.24 Job Receipt Per Mts. 7.44 7.69 Unaccounted Job Mts. 836120 - Total Mts. 5360075 - Per mts. Cost if Unaccounted Job Mts are considered 4.81 - Difference in Cost (5.71-4.81) 0.90 - Cost for unaccounted job work 4824068 - Profit on unaccounted job work 1028772 - Note: The above working clearly proves that assessee has not claimed any expenses r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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