TMI Blog2013 (8) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in favour of assessee. - - - - - Dated:- 13-1-2012 - Order The order of the Bench was delivered by Sushma Chowla (Judicial Member).-The appeal filed by the assessee is against the order of the Commissioner of Income-tax-III, Ludhiana, dated March 29, 2011, relating to the assessment year 2006-07 against the order passed under section 263 of the Income-tax Act, 1961. The assessee has raised the following grounds of appeal : "1. That the worthy Commissioner of Income-tax-III, Ludhiana has erred in issuing notice and passing order under section 263 of the Income-tax Act, 1961. 2. That the learned Commissioner of Income-tax-III has also erred to state that assessment framed and the order passed under section 143(3) by the Assessing Officer is erroneous and prejudicial to the interests of the Revenue. 3(a) That the learned Commissioner of Income-tax-III as per paragraph (a) of the order under section 263 has stated that the order passed by the Assessing Officer was prejudicial to the interests of the Revenue as there was lack of enquiry and verification regarding the compliance of excise duty provisions and also copies of supporting bills and evidence for the purchase o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was in respect of non-inclusion of the excise duty in the value of opening stock and closing stock and also non-furnishing of the supporting bills in respect of the addition to the fixed asset and whether the said asset was put to use. The explanation of the assessee in this regard was that while preparing its manufacturing, trading and profit and loss account, the assessee had shown the sales after reducing the amount of excise duty and also the purchases were debited after excluding the same. A reference was made to annexure 2 of the audit report in which the details of adjustment to be made under section 145A of the Income-tax Act are provided. The assessee has further explained that the details of addition made to the fixed asset along with photocopies of the bills were furnished before the Assessing Officer and further the said bills were also filed before the Commissioner of Income-tax. Further explanation before the Commissioner of Income-tax by the learned authorised representative for the assessee in respect of the provisions of section 145A of the Act dated March 28, 2011 reads as under : "With regards to the captioned subject, we hereby submit the reply to your good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following accounts : "In this case the Income-tax Officer, Ward-VI(2), Ludhiana, has passed the order under section 143(3) of the Income-tax Act for the assessment year 2006-07 on December 26, 2008. On a perusal of assessment record it is noticed that the order of the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the Revenue on the following points : (a) It is noticed that the assessee has shown sales in the manufacturing, trading and profit and loss account at Rs. 7,00,83,040. The same has been arrived at by reducing the sum of Rs. 37,13,579 for the excise duty. In fact, sales amount should have been shown including the excise duty amount. It is not apparent whether excise duty is further claimed as expenditure and whether it has been paid to the excise Department. The Assessing Officer has also failed to examine whether any sum of excise duty payable was disallowable under section 43B of the Income-tax Act. There is lack of enquiry and lack of verification. (b) The assessee has shown addition to machinery account at Rs.31,55,026 on which depreciation of Rs. 5,61,677 have been claimed. The Assessing Officer has failed to obtain copies of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. Accounting of modvat credit availed and utilised on raw materials consumed in payment of excise duty on finished goods accounted on the basis of raw material consumed. 38,66,347.73 75,79,926.73 75,79,926.73 The Assessing Officer during the course of assessment proceedings had issued a questionnaire dated September 29, 2008 to the assessee, which is placed at pages 29 and 30 of the paper book. The learned authorised representative for the assessee had referred to query Nos. 13 and 21 raised by the Assessing Officer, which reads as under : "13. Details of addition to fixed assets (please do not attach copies of accounts) : Description of Date of purchase Date on which put to use Total amount 21. Details of 43B and evidence of payments made." In reply dated November 4, 2008, placed at pages 31 and 32 of the paper book, the assessee had replied as under : "13. That the details of additions to fixed assets, as required by your goodself is enclosed herewith for your honour's kind reference. 21. That the details of payments made under section 43 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
