THE COMMISSIONE OF INCOME TAX CENTRAL vs. KIRTI SOLVEX LTD

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ITA/67/2014HC BombayHCBM03004003201404 February 2015Author: HON'BLE SHRI JUSTICE A.V. NIRGUDE,HON'BLE SHRI JUSTICE V.K. JADHAV3 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that all the appeals could be disposed of by a common order. It noted that the appeals challenged concurrent findings of the CIT and ITAT, which had set aside the findings of the Assessing Officer. The Court observed that the case primarily depended on facts and comparison. The Court found no reason to interfere with the findings of the CIT and ITAT, stating that these findings were recorded after appreciation of the facts of the case. Crucially, the Court explicitly stated that it did not see any substantial question of law arising in these appeals. Consequently, the appeals filed by the revenue were dismissed.

What were the facts?

The appeals were filed by the Commissioner of Income Tax (CIT) challenging the concurrent findings of the CIT and the Income Tax Appellate Tribunal (ITAT). Both these authorities had set aside the findings of the Assessing Officer (AO). The respondent assessee, M/s Kirti Solvex Ltd. and its group entities (Kirti Foods Ltd., Kirti Agrovate Ltd.), is a manufacturer of edible oils. The AO had concluded that the assessee inflated the amount spent on procuring oil seeds and suppressed the yield of oil seeds. The AO's conclusion was based on a comparison with similarly situated oil manufacturers and other factors. However, the CIT and ITAT overturned the AO's findings after appreciating the facts of the case.

What were the issues?

1. Whether there is a substantial question of law arising from the concurrent findings of the CIT and ITAT, which set aside the Assessing Officer's conclusion regarding inflated expenditure on oil seeds and suppressed oil seed yield. Assessee's Contention: The judgment does not record any specific contentions made by the assessee. However, the fact that the CIT and ITAT set aside the AO's findings implies the assessee likely argued against the AO's assessment and supported the lower appellate authorities' views. Revenue's Contention: The revenue, as the appellant, likely argued that the AO's findings were based on sound reasoning and evidence, and that the CIT and ITAT erred in interfering with these findings. The revenue presumably contended that there was a substantial question of law involved in the interpretation and application of relevant provisions concerning the assessee's procurement and yield figures.

AI-generated summary — verify with the full judgment below

1 ITA NOS.67 + 6 connected.2014.odt IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD INCOME TAX APPEAL NO. 67 OF 2014 THE COMMISSIONER OF INCOME TAX CENTRAL, NAGPUR VERSUS M/S KIRTI SOLVEX LTD WITH ITA/59/2014 THE COMMISSIONER OF INCOME TAX CENTRAL,NAGPUR VERSUS M/S KIRTI SOLVEX LTD WITH ITA/62/2014 THE COMMISSIONER OF INCOME TAX CENTRAL,NAGPUR VERSUS M/S KIRTI FOODS LTD WITH ITA/63/2014 THE COMMISSIONER OF INCOME TAX CENTRAL,NAGPUR VERSUS M/S KIRTI FOODS LTD WITH ITA/64/2014 THE COMMISSIONER OF INCOME TAX CENTRAL,NAGPUR VERSUS M/S KIRTI FOODS LTD WITH ITA/65/2014

THE COMMISSIONER OF INCOME TAX CENTRAL, NAGPUR VERSUS M/S KIRTI FOODS LTD

2 ITA NOS.67 + 6 connected.2014.odt WITH ITA/66/2014 THE COMMISSIONE OF INCOME TAX CENTRAL, NAGPUR VERSUS M/S KIRTI AGROVET LTD. ... Advocate for Appellant : Mr. D V Soman Advocate for Respondent :Mr. D.P. Palodkar & Mr. M.V Navandar ... CORAM : A.V. NIRGUDE & V.K. JADHAV, JJ. Dated: February 04, 2015 ... PER COURT :

All these appeals can be disposed of by this common order. In all these appeals, the appellants are challenging concurrent findings recorded by the Commissioner of Income Tax (CIT) as well as Income Tax Appellate Tribunal (ITAT). Both these authorities concurrently set aside the findings recorded by the Assessing Officer. The case mostly depended on facts and comparison. The Respondent Assessee is a manufacturer of edible oils. He mainly used two kinds of oil seeds for extraction of oil. The Assessing Officer, after appreciation of facts of the case, came to a conclusion that the respondentAssessee purposely showed inflated amount spend for procurement of oil seeds on one hand and suppressed yield of oil seeds. The Assessing Officer compared similarly situated oil manufacturers' figures with the figures of the Respondent

3 ITA NOS.67 + 6 connected.2014.odt Assessee. Various other factors were taken into account. However, the authorities mentioned above set aside the findings of the Assessing Officer. These findings are recorded mostly after appreciation of the facts of the case. We do not see any reason to interfere in these findings. We also do not look that any substantial question of law arising in these appeals.

Income Tax appeals are dismissed. ( V.K. JADHAV, J. ) ( A.V. NIRGUDE, J. ) aaa/ ***

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