ITO, WD-23(2), HOOGHLY, HOOGHLY vs. M/S SHREEHARI BASTRALAYA, HOOGHLY

This appeal is preferred by the Revenue against the order of ld. Commissioner of Income Tax (Appeals)-6, Kolkata dated 07.09.2015 for the assessment year 2009-10 on the following grounds:- (1) Whether the Ld. CIT(A) erred in deleting the entire addition made on account of discrepancy found on physical verification of stock during the course of survey operation U/s 133(A) in spite of the fact -

(i) that the valuation of stock had been rightly quantified in presence of assessee out of his sale register, purchase register & bills and vouchers maintained by assessee or found during the course of survey and the valuation of stock was computed in presence of assessee which was accepted and confirmed by the assessee as per statement recorded at the time of survey.

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(ii) that the assessee had failed to reconcile the stock figure at the time of hearing on 19.09.2008 and accepted such discrepancy of stock. Again during the course of assessment proceedings the assessee had confirmed and accepted the discrepancy vide his submission dated 09.12.2011.

(iii) that the assessee failed to produce stock register during the course of survey as no stock register was ever maintained by the assessee and the assessee was in practice to value the stock at the end of the year as admitted in statement recorded during the course of survey.

(iv) that the fresh submission of assessee on item wise purchase and sale which was not produced by the assessee at any time during survey and assessment proceedings, had been given cognisance before deleting the addition made by AD on account of discrepancy of stock found as discussed above.

(2) Whether the Ld. CIT(A) erred in deleting the entire addition made on account of discrepancy regarding payment of partner's remuneration in absence of any categorical noting in the partnership deed regarding working partners remuneration ignoring the CBDT circular No. 739 Dt. 25/03/1996.

2 As pointed out by the ld. counsel for the assessee at the outset, the tax effect involved in this appeal of the Revenue is less than the revised monetary limit recently fixed by the CBDT vide Circular No. 21/2015 dated 10th December, 2015 at Rs.10,00,000/- for filing the appeal by the Revenue before the Tribunal and this position clearly evident from the grounds raised by the Revenue in this appeal is not disputed even by the ld. D.R. In Circular No. 21/2015 (supra) recently issued by the CBDT, the monetary limit for filing the appeal by the Revenue before the Tribunal has been increased to Rs.10,00,000/- and as clarified in the said Circular, the said monetary limit is applicable retrospectively even to the appeals pending before the Tribunal. The CBDT has also instructed that such pending appeals below this specified tax limit of Rs.10,00,000/- may be withdrawn/ not pressed. Keeping in view the instruction given by the CBDT vide Circular No. 21/2015 dated 10.12.2015, which is squarely ./2015 Assessment year: 2009-2010 Page 3 of 3 applicable in the present case, the appeal filed by the Revenue in this case is treated as withdrawn/not pressed and dismissed accordingly.