Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (12) TMI 626 - PUNJAB & HARYANA HIGH COURT

2015 (12) TMI 626 - PUNJAB & HARYANA HIGH COURT - TMI - Addition on account of suppression of sales - rejection of the books of account - ITAT deleted the addition - Held that:- Tribunal being a final fact finding authority has not examined the material and evidence on record. Detailed reasons have not been given for deleting the additions. Consequently, the impugned order is set aside and the matter is remanded to the Tribunal to decide it afresh after hearing learned counsel for the parties in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

counsel for the parties, the issue involved in both the appeals is identical. However, the facts are being extracted from ITA No.49 of 2013. 2. ITA No. 49 of 2013 has been filed by the revenue under Section 260A of the Income Tax Act, 1961 (in short, the Act ) against the order dated 20.11.2012, Annexure P.3 passed by the Income Tax Appellate Tribunal, Amritsar Bench Amritsar in ITA No.91(ASR)/2011, for the assessment year 2007-08, claiming following substantial questions of law:- i) Whether on .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and every relevant aspect and found that unaccounted production and sale had taken place throughout the year which fact has also been confirmed by the learned CIT (A)? ii) Whether on the facts and circumstances of the case and in law the Hon'ble ITAT has failed to appreciate that the CIT(A) had confirmed the addition of ₹ 5,59,50,097/- which also included the unexplained investment relating to unaccounted sales? In ITA No.50 of 2013, the following question has been claimed by the reve .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

elaborately discussing each and every relevant aspect and found that unaccounted production and sale had taken place throughout the year which fact has also been confirmed by the learned CIT (A)? 3. A few facts relevant for the decision of the controversy involved as narrated in ITA No.49 of 2013 may be noticed. The assessee filed its return of income on 30.10.2007 declaring total income of ₹ 9,29,133/-. During the assessment proceedings, the Assessing Officer made addition on the basis o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

MTS on raw material consumption of 10,820.442 MTS which was a very high ratio as compared to the percentage of scrap generated by standard mills using induction furnaces or rotary furnaces. The Assessing Officer asked the assessee to show cause as to why the production should not be worked out on the basis of normal ratios of production by other mills. The assessee submitted that there were mistakes in the figures submitted before the Assessing Officer by its accountant. The assessee submitted a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

raw material using the information on material. The assessee had valued its closing stock of angle at a rate of 11.89% higher rate than the average sale rate of Angles and closing stock of rods was valued at rates 52.52% higher than the average sale rate of rods. The closing stock of scrap was valued at rates 95.92% higher than its average sale rate. He valued the sale rate of the production of 10117.48 MTS of finished goods of angle and rod and 432.83 MTS of scrap at the rate taken in closing .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

0.11.2012, Annexure P.3, the Tribunal allowed the appeal of the assessee and dismissed that of the revenue by deleting the addition of ₹ 5,59,50,097/- made on account of suppression of sales which was sustained by the CIT(A). Hence the instant appeals by the revenue. 4. We have heard learned counsel for the parties. 5. A perusal of the orders passed by the authorities below shows that the assessment order was passed by the Assessing Officer on the ground that there was variation in the rat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

istake could not have been committed by the accountant since the assessee was maintaining excise records of purchase and sales. The source of the revised figures of raw material consumption was not entered into the stock register produced by the assessee before him. Further it was held that the revised figures were manipulated and the assessee's books were not reliable and the same were rejected. On appeal by the assessee, the CIT(A) recorded that the Assessing Officer was not justified in t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version