Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR
Before: S/SHRI N.S SAINI & PAVAN KUMAR GADALE
Per Pavan Kumar Gadale, JM
This is an appeal filed by the revenue against the order of the CIT(A)-
Raipur, dated 28.10.2013 for the assessment year 2009-2010.
The revenue has raised the following grounds of appeal:-
“1. Whether in law and on facts & circumstances of the case, the CIT(A) has erred in deleting the addition of Rs. 40,48,616/- made by the A.O. on account of difference in inventory of closing stock found at the time of Survey u/s. 133A."
2 ITA No.02/Rpr/2014 Assessment Year : 2009-2010
"Whether in law and on facts & circumstances of the case, the CIT(A) has erred in deleting the addition of Rs. 4,55,752/- made by the A.O. on account of difference in cash and investment in office building disclosed at the time of Survey u/s. 133A."
"Whether in law and on facts & circumstances of the case, die CIT(A) has erred in deleting the addition of Rs. 14,74,848/- made by the AO on account of remuneration to partners as the surrendered income is to be considered as Income from other sources."
Brief facts of the case are that the assessee is a partnership firm
deriving income from manufacturing of heavy earth moving machinery parts.
A survey u/s.133A of the I.T.Act, 1961 was conducted at the business
premises of the assessee on 30.06.2008 and 01.07.2008. During the survey,
the assesseed surrendered Rs.1,16,06,292/- on account of excess stock,
excess cash and unrecorded investment in office building and offered
Rs.13,00.000/- after making reconciliation in the incomplete books of
account and explaining the differences. The Assessing Officer also made
observation in respect of statement of comparison of the assessee, financial
statement of sale and net profit for the year 2007-08 and 2008-09.
Considering these findings, the Assessing Officer concluded the percentage
disallowance to be made in respect of stock disclosure and also difference in
the cash and disallowance of partner’s remuneration made u/s 40b and also
books of account are rejected u/s.145(3) of the Act and completed the
3 ITA No.02/Rpr/2014 Assessment Year : 2009-2010
assessment 143(3) r.w s 144 of the Act assessing the total income at
Rs.90,76,386/-
Being aggrieved by the order of the Assessing officer, the assessee
carried the matter in appeal.
In the appellate proceedings, the ld A.R. argued the grounds,
reiterated the submissions made before the Assessing Officer on various
additions. The CI(A) relying on the judicial decisions and findings made by
the assessing Officer, has granted relief and allowed the appeal of the
assessee.
Aggrieved by the order of the CIT(A), the revenue has filed appeal
before us.
At the time of hearing, ld D.R submitted that the CIT(A) erred in
allowing relief to the assessee irrespective of the fact that there is difference
in valuation of closing stock and excess cash, which was disclosed at the
time of survey and subsequent to the assessment. The CIT(A) dealt on the
various aspect and none of the query of the Assessing Officer was complied.
We have heard ld D.R., perused the orders of lower authorities and
materials available on record. Prima facie, we found from the record
produced before the Tribunal and also as enumerated in the assessment
order that the assessee has not complied any notices of the Assessing
4 ITA No.02/Rpr/2014 Assessment Year : 2009-2010
Officer, therefore, the assessment was completed u/s.144 of the Act. We
find that the CIT(A) erred in deleting the addition without considering
various facts and overlooking the Assessing Officer’s findings and also
relying on the statement of the assessee. The Assessing Officer was
deprived of verifying these facts, which were produced before the CIT(A).
The CIT(A) did not call for remand report. Therefore, in the interest of
justice, we remit the matter to the file of the Assessing Officer to verify the
claim of the assessee. The assessee is directed to furnish the details which
were furnished before the CIT(A) and the AO is directed to examine the
documents and pass fresh order as per law after giving opportunity of being
heard to the assessee.
In the result, appeal filed by the revenue is allowed for statistical
purposes.
Order pronounced on 19 /01/2018.
Sd/- sd/-
(N.S Saini) (Pavan Kumar Gadale) ACCOUNTANT MEMBER JUDICIALMEMBER Raipur; Dated 19 /01/2018
B.K.Parida, SPS
5 ITA No.02/Rpr/2014 Assessment Year : 2009-2010
Copy of the Order forwarded to : 1. The Appellant : DCIT-1(1) , Raipur 2. The Respondent. M/s Rajesh Engineering & Casting, Plot No.389-390, Urla Industrial Estate Sector-A, Raipur (C.G.) 3. The CIT(A)-Raipur 4. Pr.CIT-Raipur 5. DR, ITAT, Raipur 6. Guard file. //True Copy//
BY ORDER,
SR.PRIVATE SECRETARY ITAT, Raipur