Income Tax Appellate Tribunal - Chandigarh
Ito, Mandi Gobindgarh vs Unipearl Alloys, Mandi Gobindgarh on 1 March, 2017
I N T H E I N C O M E T A X AP P EL L AT E T R I BU N A L
D I VI S I O N B EN C H , C H AN D I G A R H
BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER
AND Ms.ANNAPURNA GUPTA, ACCOUNTANT MEMBER
ITA No. 662/CHD/2016
Assessment Year : 2012-13
The Income Tax Officer, Vs M/s Unipearl Alloys,
Ward - 1, Amloh Road,
Mandi Gobindgarh. Mandi Gobindgarh.
PAN: AABFU3696F
(Appellant) (Respondent)
Appellant by : Shri Manjit Singh
Respondent by : Shri Sudhir Sehgal
Date of Hearing : 21.02.2017
Date of Pronouncement : 01.03.2017
O R D E R
PER BHAVNESH SAINI,JM This appeal by revenue has been directed against the order of ld. CIT(Appeals) Patiala dated 11.03.2016 for assessment year 2012-13 on the following grounds :
1. In the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in restricting the addition of Rs.1,37,33,111/-
to the extent of Rs.48,07,511/- made on account of unaccounted investment in unaccounted production.
2. In the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in estimating without any basis the total undisclosed investment in respect of unaccounted production to half of that estimated by the AO on considerations like credit purchase/sale, which 2 are not relevant for addition u/s 69/69B, ignoring the fact based computation of reasonable holding period computed by the AO in the assessment order.
3. In the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in sustaining the GP rate as shown by the assessee on the plea that no defect has been pointed in the books of account when the rejection of books were already confirmed by the Ld. CIT(A) in the same order."
2. The ld. counsel for the assessee, at the outset submitted that identical issue in departmental appeal was involved in the appeal of the assessee in ITA 511/2016 for assessment year 2012-13. He has further submitted that the appeal of the assessee was decided alongwith group appeals vide order dated 14.02.2017 in the cases titled ITO Vs Modi Oil & General Mills in ITA 149/2016 and the matter in issue have been restored to the file of Assessing Officer for re-consideration in the light of the internal guidelines issued by Pr.CIT. The order of the Tribunal in para 12-13 is reproduced as under :
"12. In the remaining cross appeals, the issues a r e s a me a s h a v e b e e n c o n s i d e r e d i n t h e c r o s s appeals of M/s Modi Oil & General Mills (supra). In s o me of the appeals of the a s s e s s e e , s o me o t h e r s m a l l g r o u n d s h a v e a l s o b e e n r a i s e d wh i c h h a v e n o t b e e n p r e s s e d b y ld. counsels f or the assessees. Theref ore, f o l l o wi n g t h e r e a s o n s f o r d e c i s i o n i n t h e c a s e o f M / s M o d i O i l & G e n e r a l M i l l s ( s u p r a ) , we s e t aside the orders of authorities below and 3 restore the entire issue to the f ile of Assessing Off icer i.e. re jection of the books of account under section 145(3)/144, unaccounted production of f inished goods, unaccounted prof it and unaccounted investment out of unaccounted production wi t h ref erence to c o n s u m p t i o n o f e l e c t r i c i t y u n i t s p e r me t r i c t o n p r o d u c t i o n o f f i n i s h e d g o o d s wi t h d i r e c t i o n t o r e - d e c i d e t h e e n t i r e i s s u e i n a c c o r d a n c e wi t h law in the light of the internal guidelines i s s u e d b y t h e l d . P r . C o m m i s s i o n e r o f I n c o me T ax, Patiala. T he Assessing Off icer shall give reasonable sufficient opportunity of being heard to the assessees and assessees shall be at liberty to raise any contention bef ore Assessing Off icer for completion of the a s s e s s me n t i n a c c o r d a n c e wi t h l a w.
13. In the result, all the cross appeals are a l l o we d f o r s t a t i s t i c a l p u r p o s e s . "
3. The ld. counsel for the assessee submitted that inadvertently this fact could not be brought to the notice of the Tribunal at the time of deciding the appeal of the assessee.
4. Considering the above facts in the light of earlier order of the Tribunal restoring the appeal of the assessee to the file of Assessing Officer for re- consideration of the issue, therefore, order of the ld. CIT(Appeals) is set aside and matter in issue is restored to the file of Assessing Officer as is directed in appeal of 4 the assessee in ITA 511/2016 dated 14.02.2017 whereby group appeals on identical issue have been decided. The Assessing Officer shall re-decide this issue following the guidelines issued in the group cases of M/s Modi Oil & General Mills etc. dated 14.02.2017 ( including appeal of the assessee).
5. In the result, departmental appeal is allowed for statistical purposes.
Order pronounced in the Open Court.
Sd/- Sd/-
( ANNAPURNA GUPTA) (BHAVNESH SAINI)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated: 1st March, 2017.
'Poonam'
Copy to:
1. The Appellant
2. The Respondent
3. The CIT(A)
4. The CIT,DR
Assistant Registrar,
ITAT/CHD