SHREE NAKODA SYNTHETICS PRIVATE LIMITED,AHMEDABAD vs. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-4(1)(1), AHMEDABAD

The brief facts of the case is that the assessee is a company engaged in the business of manufacturing and processing of Cloth. For the Asst. Year 2018-19, assessee filed its Return of Income on 10/10/2018 declaring total income of Rs.87,47,420/-. The return was selected for scrutiny assessment and Assessing Officer after verification found discrepancy in the opening inventory/Stock with that of the finished goods which resulted under valuation of the stock by Rs.12,56,572/-. Since the assessee could not give cogent explanation with corroborative evidences, the same was treated as unexplained income of the assessee. In appeal before Ld. CIT(A), the assessee’s submission that the same due to typographical error in quantitative details was not accepted thereby dismissed the appeal filed by the assessee.

During the course of hearing before us, Ld. Counsel for the assessee submitted the correct quantitative details as certified by the Chartered Accountant as follows: CERTIFICATE On verification of books of accounts and other relevant documents produced before us, we certify following quantitative details of raw material and finished goods are as per books of accounts for financial year 2017-18 i.e. assessment year 2018-19 in the case of Shree Nakoda Synthetics Private Limited PAN No. AAGCS5568J. In kgs Particulars Opening Purchase Consumption Closing Stock Stock Raw material Quantity Quantity Quantity Quantity Value Gery Fabrics 545829 16781450 16502012 825267 44004992 A.Y. 2018-19 Page No 3 Shree Nakoda Synthetics Pvt. Ltd. vs. DCIT

Ld. Sr. D.R. has no serious objection in setting aside the issue back to the file of Jurisdictional Assessing Officer.

Recording the above submissions of rival parties, the above Certificate being a new document produced for the first time before us and which requires verification by the Ld. A.O., we deem it fit to set aside this issue to the file of Jurisdictional Assessing Officer with the direction to give proper opportunity of hearing to the assessee and pass order in accordance with law.

In the result, the appeal filed by the Assessee is allowed for statistical purpose.