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M/s. Maruti Ceramics P. Ltd. Versus The DCIT, Circle-1, Warangal

2015 (10) TMI 77 - ITAT HYDERABAD

Un-recorded sales - difference in sales as declared by the assessee to the sales tax authority and as shown in the P & L Account - Held that:- As regards the explanation of the assessee that the difference is also on account of APGST and CST amounting to ₹ 5,03,441 and ₹ 1,70,070 respectively, it is noted from the final assessment order passed by the concerned sales tax authority that these taxes are separately levied on the gross turnover of ₹ 1,66,66,050 determined by them af .....

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f the case and the material placed on record before us, we hold that the difference in sales to the extent of ₹ 5,91,140 being purchase of fire wood and ₹ 68,915 being sale of packaging material stands explained and the addition made by the A.O. and confirmed by the Ld. CIT(A) on this issue is required to be deleted to that extent. We therefore, modify the impugned order of the Ld. CIT(A) and allow the appeal of the assessee partly. - Decided partly in favour of assessee - ITA.No.149 .....

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d confirmed by the Ld. CIT(A) on account of difference in sales as declared by the assessee to the sales tax authority and as shown in the P & L Account by treating the same as un-recorded sales. 2. The assessee in the present case is a company which is engaged in the business of manufacturing and sale of Ceramic Pipes which are mostly used in underground drainage system. The return of income for the year under consideration was filed by it on 28.10.2005 declaring total income of ₹ 10, .....

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e to support and substantiate the same, the difference of ₹ 12,57,688 was added by the A.O. to the total income of the assessee treating the same as un-recorded sales in the assessment completed under section 143(3) vide order dated 10.12.2007. 3. Against the order passed by the A.O. under section 143(3), an appeal was preferred by the assessee before the Ld. CIT(A) challenging inter alia the addition of ₹ 12,57,688 made by the A.O. on account of alleged unrecorded sales. During the .....

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unt of an Invoice accounted for twice. The A.O. insisted on asst. order from sales tax. Since the appellant has not received the asst. order by then it could not file such order. The AO has concluded that there is unaccounted sales without appreciating the fact that the appellant is a company and its accounts are audited. The discrepancy as presumed by the AO in fact is not there. The turnover as per sales tax asst. order that is received subsequently is ₹ 1,66,66,050. This turnover includ .....

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nder APGST and ₹ 9,758 under CST shown as provision and reflected in the balance sheet under current liabilities. If at all any addition is to be made, it should be to this extent of ₹ 19,554 being credit balance, but for making an entry of provision. The value of Packaging material of ₹ 68,915 is admitted as other income in the P & L Account. Therefore the appellant submits that the addition of unaccounted sales by the AO is not correct. The present appeal is against this .....

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3/-. On the basis of the monthly returns, the final assessment was framed. It is pertinent to note here that in the final asst. order, the Commercial Tax Officer has determined finally the gross turnover for the year 2004-05 as under : "Gross turnover ₹ 1,66,66,050 Exempted turnover ₹ 50,91,210 Net turnover ₹ 1,15,74,840" From the above, it is another evidence that the turnover determined by the AO is set to be correct because in the additional evidence submitted by t .....

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Rs.1,66,66,050 Add: Sales Tax & APGST & CST ₹ 6,68,365 Rs.1,73,34,415 For the purpose of determination of turnover, the turnover includes APGST & CST. Hence, the turnover of the assessee may be ₹ 1,73,34,415. 4. After considering the submissions made by the assessee as well as the material available on record including the remand report submitted by the A.O., the Ld. CIT(A) held that there was no clinching evidence filed by the assessee in support of the explanation offer .....

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rnished a re-conciliation statement at page No. 24 of his paper book explaining the difference between the turnover as finally determined by the sales tax authorities and the turnover as declared by the assessee in the P & L account as under: RECONCILIATION STATEMENT DESCRIPTION Rs. Turnover determined by Sales Tax Authorities 1,66,66,050 Less: (i) value of fire wood (being purchased. 5,91,140 (ii) Packing Material (shown as other income in books) 68,915 (iii) APGST (as separate account was .....

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f the view that the explanation offered by the assessee reconciling such difference before us is required to be finally considered on merit in the light of relevant documentary evidence produced by the assessee in support. As pointed out by the Ld. Counsel for the assessee in this regard from the relevant assessment order passed by the concerned sales tax authority placed at page Nos. 5 to 8 of the paper book, purchase of fire wood amounting to ₹ 5,91,140 is included in the turnover as det .....

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