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Income Tax Appellate Tribunal, “B” BENCH, PUNE
Before: SHRI INTURI RAMA ROAO, AM & SHRI SONJOY SARMA, JM
Om Sairam Steel & Alloys Pvt. Ltd. F-1, 2 & 3, Phase II, Additional MIDC, Jalna PAN : AAACO6232H …….Appellant V/s. The Asstt. CIT Cir. Jalna. ……Respondent Assessee by : None Revenue by : Shri M. Jasnani Date of Hearing : 25.03.2022 Date of Pronouncement : 31.03.2022 ORDER
PER SHRI SONJOY SARMA, JM:
This is an appeal filed by the Assessee directed against the order of the CIT(A) Pune-1, Aurangabad, dated 4-7-2017 for A.Y. 2006-07.
The brief facts of the case are that the assessee is incorporated under the provisions of Indian Companies Act, 1956. It is engaged in the business of manufacturing of M.S. Ingots/Billets from M.S. scrap/sponge iron/Pig Iron. The return of income for A.Y. 2006-07 was originally filed on 30-11-2006 declaring total loss of Rs. 91,72,360/-. The assessment was completed u/s 143(3) determining total loss at Rs. 87,40,800/-. Subsequently, the assessment was reopened after issuing notice u/s 147 on 30-3-2010 in response to which, the return of income was filed on 30-4-2010 declaring loss of Rs. 83,26,715/-, wherein the additional income of Rs. 4,14,085/- was declared on account of clandestine clearance of material. Again, the A.O passed an assessment order u/s 143(3) r.w.s. 147 of the Act determining total income at Rs,. 26,96,46,390/-, against which an appeal was preferred before the CIT(A) Aurangabad, who
Om Sairam Steel & Alloys Pvt. Ltd. A.Y. 2006-07 agreed with the order passed u/s 154 accepting the contents of the appellant that the income assessed in the earlier year should be telescoped against the income assessed for the A.Y. 2006-07. Being aggrieved by the order of the CIT(A), the Revenue as well as assessee had filed appeals before the Tribunal. The Tribunal had disposed of the said appeals by dismissing the appeal filed by the Revenue and allowing the appeal of the assessee. Subsequently, the Tribunal had issued order u/s 254(2) directing the A.O to make the addition at 4% or actual G.P. rate declared by the assessee for that year, whichever is higher, on the value of such admitted clandestine removal of material without payment of excise duty, by the assessee before the excise authorities. before the A.O in order to compute the additional income in the hands of the assessee in the respective years. Pursuant to this order of the Tribunal, the A.O passed an order making an addition of Rs. 4,14,085/- rejecting the contention of the assessee that the said profit was already offered to tax.
On appeal, the CIT(A) has confirmed the finding of the A.O that the order was passed pursuant to the order passed by the Tribunal u/s 254(2) of the Act. Being aggrieved, the appellant is in appeal before us.
When the appeal was called on, none appeared on behalf of the assessee. However, the assessee filed written submissions stating that the impugned addition is nothing but a double addition. The appellant has already shown the profit of Rs. 4,14,085/- on account of clandestine removal of material in the revised return of income. On the other hand, the Sr. D.R has opposed submission of the assessee.
We have perused the material on record. We find that the impugned order was passed by the A.O pursuant to the corrigendum issued by the Tribunal u/s 254(2) of the Act. If the assessee is aggrieved by the order of the Tribunal, he should have exercised remedy as provided under the Statute. Since the Om Sairam Steel & Alloys Pvt. Ltd. A.Y. 2006-07 order passed by the A.O is only in conformity with the order of the Tribunal, we do not find any reason to interfere with the orders of the lower authorities. Accordingly, the appeal filed by the assessee stands dismissed.
In the result, the appeal of the assessee is dismissed.
Order pronounced in the open Court on this 31st day of March, 2022.