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Ashaben Parshottambhai Versus The Deputy Commissioner of Inocme Tax, Circle-6, Surat

2016 (1) TMI 777 - ITAT AHMEDABAD

Addition of undervaluation of stock - Held that:- Apart from the submission that the quality of oil is substandard, no evidence in its support has been filed by Assessee. Further, Assessee has also not placed any material to support her contention the oil was indeed sold subsequently at the realizable value considered by the Assessee for the purpose of valuation. In such circumstances, we find no reason to interfere with the order of AO - Decided against assessee

Disallowance of 50% o .....

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lso not placed any evidence on record to demonstrate that the expense is not for business purpose. Considering the fact that the submissions of both the parties are not supported by any evidence, the disallowance being made by A.O on adhoc basis, the passing of a cryptic order of ld. CIT(A), we are of view that in the present case considering the fact that the matter is more than 7 years old and no useful purpose would be served in remanding the matter back. In such a situation, we are of the vi .....

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essee.

- ITA No: 1314/AHD/2012 - Dated:- 30-10-2015 - SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI S.S. GODARA, JUDICIAL MEMBER For The Appellant : None (Written Submission) For The Respondent : Shri Dinesh, Singh, Sr. D.R. ORDER PER ANIL CHATURVEDI, ACCOUNTANT MEMBER 1. This appeal filed by the Assessee is against the order of CIT(A)-I, Surat dated 26.03.2012 for A.Y. 2008-09. 2. In this case on the date of hearing, none appeared on behalf of Assessee but however written submissio .....

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t was framed u/s 143(3) vide order dated 30.12.2008 and the total income was determined at the ₹ 30,69,080/- Aggrieved by the order of A.O, Assessee preferred appeal before ld. CIT(A) who vide order dated 26.3.2012 granted partial relief to the Assessee. Aggrieved by the order of ld.CIT(A), Assessee is now in appeal before us and the grounds raised by the Assessee reads as under:- 1. The learned Commissioner of Income Tax (Appeals) has erred in law and on facts in confirming the addition o .....

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eping Expenses to the tune of ₹ 55,787/- and 24,328/- respectively on the ground of not being subject to verification. 4. The Appellant prays for granting such other relief as may be deemed just and proper by your Honours considering the factual and legal aspects of the case of the appellant. 1st ground is with respect to addition of undervaluation of stock 5. During the course of assessment proceedings, A.O noticed that stock of 3113 liters of oil that was lying in stock at the end of the .....

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at the valuation of stock at "net realizable value" adopted by Assessee was subjective and without any evidence and proof. He accordingly rejected the books results as regards the closing stock u/s 145 of the Act and thereafter valued the stock of oil at ₹ 112.6 per liter and made addition of ₹ 28,453/-. Aggrieved by the order of A.O, Assessee carried the matter before ld. CIT(A) who upheld the order of A.O by holding as under:- 8.2 The Assessing Officer has taken the Valua .....

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t the Assessee was regularly following the method of valuation of stock as "cost or market value whichever is lower". It was therefore submitted that the addition be deleted. 8. The Ld DR on the other hand submitted that Assessee has not placed any material on record to demonstrate that the quality of oil was of substandard quality. He therefore submitted that A.O was justified in making the addition. He thus supported the order of A.O and ld. CIT(A). 9. We have heard the Ld DR and per .....

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by the Assessee for the purpose of valuation. In such circumstances, we find no reason to interfere with the order of AO and thus this ground of Assessee is dismissed. 2nd ground is with respect to disallowance of 50% of sales promotion expenses 10. Assessee had claimed ₹ 2,22,550/- as sales promotion expenses which was stated to be towards providing 1 liter of mineral water bottle to the customers who refilled their fuel tank in excess of ₹ 1000/-. A.O noted that Assessee did not su .....

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n distributed free of cost as gift to customers. Sine this expenditure is not subject to verification, the 50 % disallowance out of ₹ 2,22,560/- made by the assessing officer is confirmed. 11. Aggrieved by the order of ld. CIT(A), Assessee is now in appeal before us. 12. Before us, Assessee in written submissions inter alia submitted that the expenses were incurred for the purpose of business and cannot be held to be personal in nature and that the Assessee had produced the bills before AO .....

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been incurred for supplying 1 liter mineral water bottle to the customers who have got their fuel tanks filled for more than ₹ 1,000, almost all the expense has been incurred by account payee cheque and the expenses have not been found to be bogus. The aforesaid submissions of the Assessee are not supported by any evidence and at the same time, the aforesaid submissions of the Assessee have also not been controverted by Revenue. Further, Revenue has also not placed any evidence on record t .....

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