Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

Commissioner of Income Tax Versus Mohd. Sahid Prop. M/s Azim Builders

2017 (12) TMI 413 - ALLAHABAD HIGH COURT

Valuation of closing stock - methods of accounting - Held that:- Tribunal has again not committed any error in rejecting the foundation of valuation made by the assessing officer. In so far as it has noted that the total sale turnover of the residential units made by the assessee was irrelevant inasmuch as the sales of different units had been made in different years and the same could not be clubbed together to apply the gross profit rate thereto to infer the deemed cost of closing stock. Here, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e's same method of accounting had found acceptance during assessment proceedings for the Assessment Years 2005-06, 2006-07 and 2007-08 in proceedings under Section 143(3) of the Act. Therefore, the same does not suffer from any infirmity. The finding recorded by the Tribunal is a pure finding of fact recorded on the basis of material and evidence on record. It does not suffer from any infirmity. Question nos. 1 and 6 are answered in the affirmative i.e. in favour of the assessee and against the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

not receive the letter or did not appear in person during the inquiry made by the assessing officer at the original assessment stage gets overshadowed and looses its relevance in absence of any evidence to doubt the genuineness or correctness of registered sale deeds executed by the assessee. - Even in respect of amount of ₹ 8,00,000/- the second remand report as extracted by the CIT (Appeals) clearly mentioned that Aashiq Ali Siddiqui had got the sale deed executed in his favour wher .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ay Kumar Srivastava,Ajay Kumar Srivastava,Jeet Bahadur Singh,S.S. Chauhan,Sarveshwar Singh ORDER Heard learned counsel for the parties. This appeal under Section 260 A of the Income Tax Act, 1961 (hereinafter referred to as the Act) has been filed by the revenue against the order of the Income Tax Appellate Tribunal, Agra Bench, Agra dated 13.04.2012 for the Assessment Year 2005-06. By that common order, the Tribunal has decided the revenue's appeal being ITA No. 5/Agr/2011 and the assessee& .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in the way it did in this present case? (3) Whether the ITAT was justified in deleting the addition made by the AO u/S 68 solely on the grounds that the AO has accepted the claim of the Assessee in the remand report? (4) Whether the ITAT had gone beyond its jurisdiction when it deleted the additions made by the A.O. as it amounted to curbing the powers of the A.O. granted by the Legislature u/S 68? (5) Whether on the facts and circumstances of the case, the Hon'ble ITAT was justified in law .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t the very outset, learned counsel for the revenue states that the instant appeal is being pressed on questions of law nos. 1, 2 and 6 only. While questions no. 1 and 6 relate to addition made to the income of the assessee on account of valuation of closing stock, question no.2 relates to addition made under Section 68 of the Income Tax Act, 1961 (hereinafter referred to as the 'Act'). The assessee is an individual engaged in construction and sale of residential flats in the name of M/s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cash credit under Section 68 of the Act. In the appeal to the CIT (Appeals), two remand reports were submitted by the assessing officer especially with respect to the alleged unexplained cash credit under Section 68 of the Act. The Commissioner of Income Tax (Appeal) vide his order dated 25.10.2010 partly allowed the appeal. He restricted the addition made under Section 68 of the Act to ₹ 1,70,000/-. However, he upheld addition of ₹ 35,40,000/-. Also, he upheld the entire addition m .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ction material purchased by the assessee had not been disputed by the assessing officer. The said purchase was in fact found to be duly supported by the vouchers maintained by the assessee that were also duly signed by the payees/recipients. Then, it found that the consideration of turnover of sale of residential flats made by the assessee at ₹ 1,94,42,000/- did not provide a sound basis to determine the value of closing stock inasmuch as those residential units had been sold by the assess .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ars also the assessee had been subjected to assessment under Section 143(3) of the Act and in those assessment proceedings the value of closing stock disclosed by the assessee had been accepted. The Tribunal, therefore, did not find any reliable or cogent reason to reject the book results of the assessee and to make the addition to the value of closing stock of residential flats. Upon such discussion and reasoning made by the Tribunal in detail and having thus considered the facts and evidence 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

nd recorded in the assessee's books of account for the previous year relevant to the Assessment Year 2005-06 stood duly explained and reconciled inasmuch as the entire amount of ₹ 37,10,000/- was found to have been adjusted against the sale consideration for different flats sold by the assessee in different assessment years, to the same persons in whose name those cash credit entries were found existing in the assessee books of account for the Assessment Year 2005-06. Thus the reasonin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

aluation of closing stock with reference to the sale price found recorded in the books of account of the assessee and the gross profit rates disclosed by the assessee for the relevant period. As to the deletion of addition made under Section 68 of the Act, learned counsel for the revenue submits that ₹ 8,00,000/- deposited on 09.02.2004 by Aashiq Ali Siddiqui could not have been deleted as that person did not appear in response to the notice sent by the assessing officer. No other challeng .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g stock on cost basis. In that regard, the Tribunal had specifically found that the purchase of raw material was found to be duly vouched which vouchers upon examination were further found to have been duly signed by the third parties. No other or further exercise was carried out by the assessing officer to doubt the correctness or completeness of the vouchers entries. Thus, in the first place, there was clear documentary evidence in support of the valuation disclosed by the assessee. Then, the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

bt the correctness of the method followed by the assessee, the Tribunal has again not committed any error in rejecting the foundation of valuation made by the assessing officer. In so far as it has noted that the total sale turnover of the residential units made by the assessee was irrelevant inasmuch as the sales of different units had been made in different years and the same could not be clubbed together to apply the gross profit rate thereto to infer the deemed cost of closing stock. Here, w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

same method of accounting had found acceptance during assessment proceedings for the Assessment Years 2005-06, 2006-07 and 2007-08 in proceedings under Section 143(3) of the Act. Therefore, the same does not suffer from any infirmity. The finding recorded by the Tribunal is a pure finding of fact recorded on the basis of material and evidence on record. It does not suffer from any infirmity. Question nos. 1 and 6 are answered in the affirmative i.e. in favour of the assessee and against 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

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

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

Go to Mobile Version