BHALOTIA BLEACHING & DYEING P. LTD,MUMBAI vs. ITO WD 1(4), KALYAN

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ITA 2530/MUM/2012Status: DisposedITAT Mumbai02 May 2016AY 2006-073 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the issue required fresh examination by the Assessing Officer. The AO was directed to consider the reconciliation statement and other explanations provided by the assessee.

What were the facts?

The assessee's Profit & Loss account showed purchases of Rs. 8,09,894/- more than what was recorded in the Purchase register. The assessee claimed this difference was due to repair materials not being entered in the register.

What were the issues?

The key issue was the discrepancy between purchases in the P&L account and the purchase register, and whether the assessee's explanation for the difference was sufficient.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

Before: SHRI B.R. BASKARAN (AM) & SHRI AMIT SHUKLA (JM)

For Appellant: Shri K. Gopal
For Respondent: Shri T.A. Khan (DR)
Hearing: 02.05.2016Pronounced: 02.05.2016

PER B.R. BASKARAN, AM :- The appeal filed by the assessee is directed against the order dt. 24.1.2012 passed by CIT(A)-1, Thane and it relates to the Assessment Year 2006-07.

2.

The solitary issue urged in this appeal relates to addition of Rs.8,09,894/- relating to difference between purchases shown in the Profit & Loss account and the Purchase register.

3.

The Ld. Counsel appearing for the assessee submitted that the assessee did not enter the purchases relating to materials purchased

1.

2 Bhalotia Bleaching & Dyeing Pvt. Ltd. for carrying out repair works in the Purchase register, while they have been accounted for as purchases in the Profit & Loss account and the same has resulted in a difference of Rs.8,09,894/-. The Ld. Counsel furnished a reconciliation statement substantiating the above said claim.

4.

On the contrary, the Ld. DR submitted that the assessee has not given any proper explanation with regard to the discrepancy noticed in the Purchase account before the AO and hence, CIT(A) has confirmed the addition.

5.

Having heard the rival submissions we are of the view that this issue requires fresh examination at the end of the Assessing Officer, since the assessee has filed a reconciliation statement before us. Accordingly, we set aside the order of the Ld. CIT(A) and restore the same to the file of the Assessing Officer with the direction to examine this issue afresh by duly considering the reconciliation statement, information and explanations that may be furnished by the assessee and take appropriate decision in accordance with law.

6.

In the result, appeal filed by the assessee is treated as allowed for statistical purposes.

Order has been pronounced in the open court on 02.05.2016.

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