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2014 (11) TMI 230 - AT - Income TaxRe-computation of turnover - Confirmation of the part of sale price in excess of what is raised by the assessee in the Debit Note – Held that:- As decided in assessee’s own case for the earlier assessment year, it has been held that the Karnataka Lok Ayukta, in its report on mining scam had alleged mal practices on the part of the officials of the assessee-company which is a Government of Karnataka undertaking and inquiries were initiated against the relevant officials - no evidence whatsoever has been brought on record by the AO to establish that the assessee has realized from the sale of C-ore to M/s. Kalyani Steels Ltd., more than what is recorded in the assessee's books of account - MMTC price was ₹ 1058 PMT prevailing on 1st April 2007 for supplies to be made during the FY 2007-08 which is in conformity with the marketing agreement and accordingly the assessee company had raised Debit Note for the same whereas M/s.Kalyani Steels Ltd., had offered sales price at ₹ 635/- PMT and after negotiations the sale price was fixed at ₹ 700/- PMT without prejudice to the award by the Arbitrator - The assessee has to offer the balance of sale consideration in the year of arbitration award - What is contemplated to be taxed under the Income-tax Act is the real income and unless income due to the assessee has been crystallized, it cannot be brought to tax on an estimate basis - the assessee has received only ₹ 700/- PMT from M/s.Kalyani Steels Ltd. – thus, the actual price received by the assessee only shall be treated as income of the assessee during the relevant AY as the assessee has to offer difference of price charged on the final price arrived at by the Arbitrator in the year of award – Decided in favour of assessee. Sales made to M/s.Shivashankar Minerals – Held that:- The agreements between the assessee and M/s.Kalyani Steels Ltd., and also M/s.Shivashankar Minerals, are similar and the fixation of price of ore was also governed by similar set of facts - the actual price received by the assessee only is to be brought to tax. Addition on valuation of closing stock – Held that:- There is no finding by any of the authorities on this contention and this contention needs verification by the AO – thus, the matter is remitted back to the AO for fresh consideration – Decided in favour of assessee.
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