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Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘B’, CHANDIGARH
Before: SHRI A.D. JAIN & DR KRINWANT SAHAY
आदेश/Order Per Dr. Krinwant Sahay, A.M.:
The appeal in this case has been filed by the Assessee against the order dated 31.08.2023 of the ld. Commissioner of Income Tax (Appeals-5), Ludhiana [ herein referred to as ‘ CIT(A)’], for assessment year 2019-20.
658-Chd-2023 –Pioneer Cranes & Elevators Pvt. Ltd., Ludhiana 2 2. The Ground of appeal and facts of the case, as submitted by the Assessee are reproduced as under: - “The assessee is working as manufacturer of cranes. The premises of the assessee were surveyed by the Income Tax Department on 30.08.2021. The Learned Deputy Commissioner of Income Tax has added back Rs. 19,23,279/- on account of G.P. rate on difference in stock. At the time of physical verification of stock, approximate quantity and rate was taken and keeping in view the high quantity of stock with number of items only approximate quantities were taken and the stock was not weighted. The rate of the stock was also taken at approximate value and were not taken from the bills. Copy of purchase bills clearly indicating the difference in rates were submitted to the A.O. and Stock was-same at the time of Physical Counting of stock at the time of Survey, so there is no short fall in physical stock at the time of survey. There were no difference in stock physically at the premises and as per books of accounts. So no addition on account of GP Rate on stock jess found at the time of physical verification should be made. The Learned Deputy Commissioner of Income Tax has added back Rs.14,87,404/- on account of G.P. rate on difference in stock. Though no day to day stock register was maintained but Physical stock is regularly counted and on 31s1 march of every Year stock is valued at cost after physical verification of inventory. Opening and Closing Stock has been Valued at cost. So, the Assessee is maintaining all the records for valuation of stock. The 658-Chd-2023 –Pioneer Cranes & Elevators Pvt. Ltd., Ludhiana 3 assessee is manufacturing cranes and huge number of items are used to manufacture so day to day stock register of such small items was not maintained. In the case of Paramount Impex Vs ACIT, the Learned bench of Chandigarh Tribunal has clearly held that Books of Accounts cannot be rejected merely on the basis of non maintenance of day to day record of stock.”
During the course of hearing before us, the ld. Counsel for the Assessee has submitted that the order passed by the ld. CIT(A) is ex- parte order because the notices were sent on the Income-tax portal which the Assessee has not seen in time. The ld. Counsel of the Assessee further brought to the notice of the Bench the decision of the Hon'ble jurisdictional Punjab and Haryana High Court in the case of ‘Munjal BCU Centre of Innovation and Entrepreneurship Vs CIT(E) Chandigarh’, CWP No. 21028/2023 dated 4.3.2024 and requested that as the service of notice was solely on portal which could not be seen by the Assessee, therefore, as per the Hon'ble jurisdictional High Court’s decision in the above mentioned case, the Assessee may be presumed to have no knowledge of the proceedings and he further requested for sending this case back to the CIT(A) for re-adjudication.
The ld. DR has no objection as the request of the Assessee’s Counsel was based on the judgement of the jurisdictional Punjab & Haryana High Court (supra).
658-Chd-2023 –Pioneer Cranes & Elevators Pvt. Ltd., Ludhiana 4
Accordingly, in view of the above, in the interest of justice, the matter is remitted to the file of the CIT(A), to be decided afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(A). All pleas available under the law shall remain so available to the assessee. Ordered accordingly.
In the result, the appeal of the Assessee is allowed for statistical purposes.
Order pronounced on 06.2024.