MAJESTIC INTERNATIONAL,CHENNAI vs. ACIT, CHENNAI

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ITA 2435/CHNY/2016Status: DisposedITAT Chennai16 February 2017AY 2008-092 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found prima facie arithmetic mistakes in the calculations and decided to re-examine the matter. The entire issue was remitted back to the Assessing Officer for fresh consideration.

What were the facts?

The assessee's appeal concerns the assessment year 2008-09 and challenges additions made due to alleged arithmetic errors in stock computations. The assessee requested an opportunity to explain these errors before the Assessing Officer.

What were the issues?

The key issue was whether arithmetic errors in stock computations led to incorrect additions. The assessee sought an opportunity to rectify these computational mistakes.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘SMC’ ‘A’ BENCH, CHENNAI

Before: Shri A. Mohan Alankamony

Hearing: 16.02.2017

आदेश / O R D E R

1.

This appeal is filed by the assessee aggrieved by the order passed by the Commissioner of Income Tax (Appeals)-5, Chennai in 5/13-14 dated 27.05.2016 for the assessment year 2008-09 passed u/s.143(3) r.w.s 250(6) of the Act.

2.

The assessee has raised seven grounds in his appeal with respect to two issues regarding arithmetic computations.

3.

At the outset, the Ld. AR submitted that the Ld. AO erred with respect to arithmetic computation of opening stock, closing stock, work- in- progress, etc., due to which the additions were made and sustained by the Ld. CIT(A). He further prayed that one more opportunity may be provided to the assessee so that the assessee will be in a position to vividly explain the error in the arithmetic computation before the Ld. AO and accordingly rectify the same. The Ld. DR could not controvert to the submission of the Ld. AO because prima facie some mistake appeared to be in the arithmetic calculations.

4.

After hearing both sides, I am of the considered view that the matter requires to be re-examined by the Ld. AO afresh. Therefore, in the interest of justice, I hereby remit the entire matter back to the file of AO for de-nova consideration.

5.

In the result appeal of the assessee is allowed for statistical purposes.

Order pronounced on the 16th February, 2017.

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