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M/s. Triton Valves Ltd. Versus Asst. Commissioner of Income-tax, Circle 12 (4) , Bangalore

2016 (5) TMI 359 - ITAT BANGALORE

Condonation of delay - Held that:- Ratio laid down by the Hon’ble Supreme Court in the case of Swadeshi Cotton Mills Co. Ltd. vs. Government of UP (1972 (11) TMI 78 - SUPREME COURT OF INDIA) that ignorance of law is not an excuse and therefore, delay in filing of appeal cannot be condoned on account of ignorance of law. The ratio laid down by the Hon'ble jurisdictional High Court in the case of Spporthi Sadan Convent vs. CIT (2016 (5) TMI 191 - KARNATAKA HIGH COURT) is squarely applicable to the .....

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espondent : Dr P. K. Srihari, Addl. CIT (DR) ORDER Per Inturi Rama Rao, AM This is an appeal filed by the assessee-company against the order of the learned Commissioner of Income-tax(Appeals)-III [CIT(A)], Bangalore, dated 8/1/2014 for the assessment year 2010-11. 2. The appellant raised the following grounds of appeal: 1. The impugned order of the learned Commissioner of Income Tax (Appeals)-III, Bangalore passed under section 250 of the Income Tax Act, 1961 to the extent which is against the a .....

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aw materials (consisting of a sum of ₹ 28,22,607/- claimed by the appellant as deductible and another sum of ₹ 17,73,459/- held to be includible by the assessing officer), on the facts and circumstances of the case. 4. The learned Commissioner (Appeals) failed to appreciate that the appellant had changed the method of valuing the stock of raw materials to exclude excise duty component thereof to comply with the applicable Accounting Standard as prescribed by the Institute of Chartere .....

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145A, the inclusion of duties and taxes to purchases and inventories essentially results in tax neutral effect. 6. The learned Commissioner (Appeals) erred in holding that excise duty component is to be included as part of the closing stock value as per section 145A of the Act but at the same time failed to apply the provisions of section 145A in its entirety which requires that purchases also be valued inclusive of duties and taxes thereon and thus denied the appellant the corresponding cost of .....

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he appellant denies itself liable to be charged to interest under section 234B of the Act on the facts and circumstances of the case. 9. The appellant craves for leave of this Hon'ble Tribunal, to add, alter, delete, amend or substitute any or all of the above grounds of appeal as may be necessary at the time of hearing. 10. For these and other grounds that may be urged at the time of hearing of appeal, the appellant prays that the appeal may be allowed for the advancement of substantial cau .....

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4), Bangalore [hereafter referred to as the AO ], at a total income of ₹ 7,02,17,890/- vide order dated 25/2/2013 passed u/s 143(3) of the Income-tax Act, 1961 [ the Act for short]. Disparity between returned income and the assessed income is on account of additions of ₹ 45,96,066/- on account of valuation of closing stock and opening stock by including the element of excise duty paid on the stock remaining as on 1/4/2009 and 31/3/2010 and addition of ₹ 5,10,367/- on account of .....

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lement was not included as a part of the closing stock for income-tax purpose. As a result of this, an amount of ₹ 28,22,607/-, being excise duty included in the valuation of closing stock for earlier years and offered to tax was claimed as a deduction during the year under consideration. It was further claimed that in the closing stock as on 31/3/2010, of excise duty of ₹ 45,66,064/- was included. Out of this, excise duty component included in the opening stock was ₹ 28,22,607 .....

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travel was undertaken in connection with procurement of machinery and therefore should be treated as capital. However, it claimed the benefit of depreciation on such disallowance and the same was disallowed by the AO. 4. Being aggrieved by the above addition, the assesseecompany filed an appeal before the ld. CIT(A), who vide order dated 8/1/2014 dismissed the appeal by holding that closing stock should be valued by including the benefit of excise duty paid in terms of sed.145A of the Act and in .....

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by the above order, assesseecompany is before us in the present appeal. 5. At the outset, we must mention that there is a delay of 226 days in filing present appeal. The assessee-company has filed a petition praying for condonation of delay. The petition reads as under: The Appellant above named most respectfully submits as follows- 1. An Order under section 250 of the Income-tax Act,1961 was passed on 08.01.2014 in the case of the appellant by the learned Commissioner of Income-tax (Appeals)-I .....

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al and challenged the addition of excise duty component of ₹ 45,96,066/- made by the assessing officer as part of the closing stock of raw materials. However, the learned Commissioner (Appeals) upheld this addition made by the assessing officer vide order dated 08.01.2014. 3. It is further submitted that the appellant was advised by the earlier counsel that the addition made by the assessing officer on account of inclusion of excise duty component in the closing stock of raw materials woul .....

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and studied the assessment and appeal records for earlier years and enquired whether the order passed by the Commissioner of Income Tax (Appeals) has been challenged before the Hon'ble Income-tax Appellate Tribunal, the appellant expressed that its earlier counsel had advised not to file an appeal for reasons stated in para 3 above and thus the appellant did not prefer an appeal before the Hon'ble Income-tax Appellate Tribunal. 5. The appellant was advised by the present counsel, that th .....

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ation of delay in filing the appeal. 6. The appellant submits that immediately after the advice was obtained by the present counsel, within a reasonable time i.e. within 3 days, all the efforts were made to file this appeal challenging the order passed by the learned Commissioner (Appeals) before this Hon'ble Tribunal on 22. 12.2014. 7. In view of the above, the Appellant could not file the Appeal before this Hon'ble Tribunal well in time i.e. the appellant ought to have filed this statu .....

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condone the delay of 226 days in filing the present appeal against the order of the learned Commissioner of Income- tax (Appeals)-III, Bangalore passed under section 250 of the Act before this Hon'ble Tribunal and hear the same on merits for the advancement of substantial cause of justice. 9. It is humbly submitted that if this application for condonation of delay in filing the appeal is not allowed, the appellant would be put to great hardship and irreparable injury and on the other hand no .....

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& Others [2000] 9 Supreme Court Cases 733. 6. Thu, the appellant seeks to explain the delay in filing the present appeal that it is on account of wrong advice given by the earlier counsel that no appeal was filed in time. However, the appellant has neither revealed source of such advice nor tried to explain delay of each day. The Hon'ble jurisdictional High Court in the case of Spporthi Sadan Convent vs. CIT (68 taxmann.co. 245)(Kar) on identical facts held that the delay cannot be condo .....

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pellant neither chose to reveal the source of such advice nor replied to the questions posed by the Tribunal. In such circumstances, the appeal challenging the order of the Tribunal is only a reiteration of grounds urged before the Tribunal. 8. The learned counsel for the appellant contended that though the counsel appearing for the appellant offered to furnish the details sought for by the Tribunal, no time was granted by the Tribunal. No specific ground is urged in this behalf in the pleadings .....

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