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2016 (8) TMI 265 - GUJARAT HIGH COURT

2016 (8) TMI 265 - GUJARAT HIGH COURT - TMI - Addition on account of unaccounted sale of cattle feed - CIT(A) deleted the addition confirmed by ITAT - Held that:- Commissioner (Appeals) has recorded a categorical finding of fact to the effect that M/s Raghuvir Cotton Company had filed a separate return of income. In the absence of any documentary evidence being produced on record to point out that the finding recorded by the Commissioner (Appeals), as concurred with by the Tribunal, is contrary .....

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ept the purchase account in which quantity record had been made. It was the case of the assessee that all purchases so recorded were duly supported by the purchase bills and were in consonance with the data contained in impugned books and hence, there was no reason to treat all the purchases as unaccounted. The Commissioner (Appeals) observed that all the purchases were accounted for and that the Assessing Officer was not in a position to deal with the contentions raised on behalf of the assesse .....

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ity being pointed out therein, the same does not give rise to any question of law. - Addition on account of unaccounted purchase of Shankar Kapasiya (cotton seeds) - CIT(A) deleted the addition confirmed by ITAT - Held that:- Commissioner (Appeals) upon considering the arguments of the assessee as well as the remand report submitted by the Assessing Officer and the material on record, found that the purchases recorded in X-13 pertained to the assessee firm and associate concern M/s Raghuvir .....

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t and at best addition of the peak amount could have been made and deleted the addition of ₹ 71,89,691/-. The Tribunal, upon appreciation of the material on record, concurred with the findings of fact recorded by the Commissioner (Appeals). On behalf of the revenue, the learned counsel for the appellant is not in a position to point out any material to the contrary so as to dislodge the findings of fact recorded by the Tribunal. Under the circumstances, this ground also does not give rise .....

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making the addition and deleted the same. The Tribunal has concurred with the above findings of fact recorded by the Commissioner (Appeals). The conclusion arrived at by the Tribunal being based upon the findings of fact recorded by it upon appreciation of the material on record, in the absence of any perversity being pointed out therein, the same does not give rise to any question of law. - Addition as unaccounted sale of cotton bales - CIT(A) deleted the addition confirmed by ITAT - Held t .....

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ire sales. The Tribunal concurred with the reasoning adopted by the Commissioner (Appeals) based on factual findings recorded by him. Having regard to the findings of fact recorded by the Commissioner (Appeals), as concurred by the Tribunal, it cannot be said that the course of action adopted by the Commissioner (Appeals), in any manner, suffers from any legal infirmity so as to warrant interference. - Addition on account of unaccounted sale of Kala - CIT(A) deleted the addition confirmed by .....

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r. He, accordingly, deleted the addition made by the Assessing Officer. The Tribunal concurred with the findings recorded by the Commissioner (Appeals). The conclusion arrived at by the Tribunal being based upon concurrent findings of fact recorded by it, in the absence of any perversity pointed out therein, does not give rise to any question of law. - Addition on account of unexplained stock difference - CIT(A) deleted the addition confirmed by ITAT - Held that:- Commissioner (Appeals) acce .....

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the same cannot be made again. The Tribunal, therefore, did not commit any error in upholding the findings recorded by the Commissioner (Appeals). - Revenue appeal dismissed. - Tax Appeal No. 909 of 2015 - Dated:- 31-3-2016 - Harsha Devani And G. R. Udhwani, JJ. For the Appellant : MR.VARUN K.PATEL, ADVOCATE ORDER ( Per : Honourable Ms. Justice Harsha Devani ) 1. By this appeal under section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act ), the appellant revenue has cha .....

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r on account of unaccounted sale of cattle feed? (b) Whether in the facts and circumstances of the case, the learned ITAT has erred in law and on facts in confirming the order of the Commissioner of Income Tax (Appeals) deleting the addition of ₹ 1,23,987/- made on account of unaccounted sale of Kapas Shankar (cotton)? (c) Whether in the facts and circumstances of the case, the learned ITAT has erred in law and on facts in confirming the order of the Commissioner of Income Tax (Appeals) de .....

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n confirming the order of the Commissioner of Income Tax (Appeals) directing the Assessing Officer to make addition after computing the profit on unaccounted sale of cotton bales instead of the entire unaccounted sale of cotton bales of ₹ 27,71, 015/-? (f) Whether in the facts and circumstances of the case, the learned ITAT has erred in law and on facts in confirming the order of the Commissioner of Income Tax (Appeals) deleting the addition of ₹ 8,10,665/- on account of unaccounted .....

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ssment under section 143(3) of the Act. Being aggrieved by the additions and disallowances made by the Assessing Officer, the assessee carried the matter before the Commissioner of Income Tax (Appeals) and partly succeeded. The revenue carried the matter in appeal before the Tribunal but did not succeed. 3. Mr. Varun Patel, learned standing counsel for the appellant assailed the impugned order by reiterating the reasoning adopted by the Assessing Officer. 4. As regards proposed question (a), the .....

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books of account. The Commissioner (Appeals) observed that as regards the addition of ₹ 21,150/- and ₹ 1,23,021/- the sales had been recorded in the books of account produced during the assessment proceedings and the Assessing Officer had already taken into account the sales disclosed by the assessee during the assessment proceedings for making gross profit addition and hence, addition on account of these sales could not be made. As regards addition of ₹ 4,49,682/-, the Commiss .....

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atel, learned standing counsel for the appellant submitted that the Tribunal had erred in overlooking the observation of the Assessing Officer that M/s. Raghuvir Cotton Company had not filed return of income upto assessment year 2001-02 and that bills of M/s. Raguvir Cotton Company were prepared as an afterthought. 6. In this regard, it may be noted that the Commissioner (Appeals) has recorded a categorical finding of fact to the effect that M/s Raghuvir Cotton Company had filed a separate retur .....

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s not give rise to any question of law. 7. Proposed question (b), it relates to deletion of addition of ₹ 1,23,987/- made on account of unaccounted sale of Kapas Shanker (cotton). The Assessing Officer did not choose to accept the purchase account in which quantity record had been made. It was the case of the assessee that all purchases so recorded were duly supported by the purchase bills and were in consonance with the data contained in impugned books and hence, there was no reason to tr .....

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ed by the Commissioner (Appeals). Thus, the conclusion arrived at by the Tribunal is purely based upon the concurrent findings of fact recorded after appreciation of the material on record and hence, in the absence of any perversity being pointed out therein, the same does not give rise to any question of law. 8. Proposed question (c), it relates to deletion of addition of ₹ 71,89,691/- made on account of unaccounted purchase of Shankar Kapasiya (cotton seeds). According to the Assessing O .....

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ering the arguments of the assessee as well as the remand report submitted by the Assessing Officer and the material on record, found that the purchases recorded in X-13 pertained to the assessee firm and associate concern M/s Raghuvir Cotton Company which had filed return of income independently showing these transactions and that such a return had been accepted. The Assessing Officer in the remand report had not made any comment against the assessee s plea. The Commissioner (Appeals) observed .....

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revenue, the learned counsel for the appellant is not in a position to point out any material to the contrary so as to dislodge the findings of fact recorded by the Tribunal. Under the circumstances, this ground also does not give rise to any question of law. 9. Proposed question (d) relates to deletion of addition of ₹ 1,65,231/- made on account of unaccounted purchase of Kalyan Kapas. The Assessing Officer made an addition of ₹ 1,65,231/- on account of unaccounted purchase of 4950 .....

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ssing Officer had chosen to ignore. The Commissioner (Appeals) found that the Assessing Officer had made this addition on the basis of the figures given by the assessee during the survey, while he had made gross profit addition on the basis of sales figure given by the assessee at the time of assessment proceedings and, accordingly, held that the Assessing Officer was not justified in making the addition and deleted the same. The Tribunal has concurred with the above findings of fact recorded by .....

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s respectively and the total production was 170975 kilograms. According to him, since the sale of cotton was of 152825 kilograms, the closing stock should be 124910 kilograms but the physical stock available was 43000 kilograms. He, accordingly, treated the difference of 81910 kilograms as unaccounted sales and made addition of ₹ 27,71,015/- which was the total sale consideration. Before the Commissioner (Appeals), it was contended on behalf of the assessee that the sales had been made out .....

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not represent the income of the assessee who had disclosed the sale. The Commissioner (Appeals), after considering the material on record and the submissions of the assessee, found that the sale of cotton bales was out of accounted stock and at best the profit could be added and not the entire sales. He, accordingly, directed the Assessing Officer to compute profit on sale of cotton bales and make addition of profit on sale of cotton bales and not the entire sales. The Tribunal concurred with t .....

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that in Annexure X-13 which belongs to the assessee firm, purchase of 313315 kilograms of Kala was recorded. Since X-13 belonged to the assessee and not to M/s. Raghuvir Cotton Company, according to the Assessing Officer, the purchase of Kala had been made by the assessee firm and not by M/s. Raghuvir Cotton Company as stated by the assessee. He, therefore, held that the income of M/s. Raghuvir Cotton Company was to be considered by clubbing with the income of the assessee. The Assessing Officer .....

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een reflected in the transactions of the associate concern for which the return had been filed and that the Assessing Officer had not pointed out anything adverse in the remand report filed by the Assessing Officer. He, accordingly, deleted the addition made by the Assessing Officer. The Tribunal concurred with the findings recorded by the Commissioner (Appeals). The conclusion arrived at by the Tribunal being based upon concurrent findings of fact recorded by it, in the absence of any perversit .....

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