Income Tax Appellate Tribunal - Ahmedabad
G-One Agro Products Ltd.,, Mehsana vs Acit, Circle-4,, Ahmedabad on 31 March, 2017
आयकर अपील
य अ धकरण, अहमदाबाद यायपीठ 'डी' अहमदाबाद ।
IN THE INCOME TAX APPELLATE TRIBUNAL
" D " BENCH, AHMEDABAD
सव ी iznhi dqekj dsfM;k , लेखा सद
य एवं महावीर साद, या यक सद
य के सम ।
BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER And
SHRI MAHAVIR PRASAD, JUDICIAL MEMBER
आयकर अपील सं./I.T.A. No.2250/Ahd/2013
( नधा रण वष / Assessment Year :2009-10)
G-One Agro Products Ltd. बनाम/ Assistant
Plot No.1067 (P), Vs. Commissioner of
Kadi Road, Chhatral, Kalol, Income Tax, Circle-4,
Dist: Mehsana - 382729. Ahmedabad.
थायी ले खा सं . /जीआइआर सं . / PAN/GIR No. : AACCG 0245 Q
(अपीलाथ" /Appellant) .. ( #यथ" / Respondent)
अपीलाथ" ओर से / Appellant by : Shri Pritesh Shah, A.R.
#यथ" क% ओर से/Respondent by : Shri G.C. Daxini, Sr. DR
ु वाई क% तार*ख /
सन Date of Hearing 29/03/2017
घोषणा क% तार*ख /Date of Pronounce ment 31/03/2017
आदे श / O R D E R
PER SHRI MAHAVIR PRASAD, JUDICIAL MEMBER :
This appeal has been preferred by the assessee/appellant is directed against the order of the Commissioner of Income Tax(Appeals)- VIII, Ahmedabad, dated 26/07/2013 for the Assessment Year (AY) 2009-10.
2. Assessee/appellant has been taken following Grounds of Appeal:
The learned CIT(A) erred in confirming the penalty of Rs.1,48,088/- imposed by AO under section 271(1)(c) of the Income Tax Act, 1961, which is requested to be deleted.ITA No.2250/Ahd/2013
G-One Agro Products Ltd. vs. ACIT Asst.Year -2009-10 -2-
3. The relevant facts as culled out from the materials on record are as under:-
The assessee who is doing business of Manufacturing of refined edible oil and related products had filed its return of income at Rs.70,61,330/- on 29.09.2009. Income of the assessee was assessed u/s. 143(3) of the Income-tax Act, 1961 at Rs.75,40,541/- on 25.11.2011.
4. During the course of assessment proceedings, it was noticed that the assessee has sold sludge, residual product for Rs.2,63,320/-. On verification of quantitative details it was noticed that opening balance available with assessee of sludge was of 24.320 Mt. Tones. Out of this, the assessee company has sold 8.345 Mt. Tones. Therefore closing balance of sludge was of 15.975 Mt. Tones. The average rate of sale/cost of sludge was worked out at Rs.30/- per. Kg. Accordingly, the closing stock was to be valued at Rs.4,79,250/-. The assessee has shown closing stock of sludge at Rs. Nil. Therefore, closing stock was shown at lower side by amount of Rs.4,79,250/-. Accordingly amount of Rs.4,79,250/- was added to the income of the assessee. Penalty proceedings u/s. 271(1)(c) of the Income Tax Act, 1961 was initiated.
5. Submission of the assessee was not found acceptable. From quantitative details furnished with tax audit report it was clear that the assessee has sold 8.345 Mt. tones sludge during the year at the rate of Rs. 30/- per kg. After sale of sludge of 8.345 Mt. tones, closing stock of sludge available with assessee was of 15.975 Mt. tones which was valued ITA No.2250/Ahd/2013 G-One Agro Products Ltd. vs. ACIT Asst.Year -2009-10 -3- at Rs.4,79,250/-. The assessee had not shown this sludge in its closing stock. Therefore, amount of Rs.4,79,250/- was added to the income of the assessee as they had suppressed their profit by amount of Rs.4,79,250/-. Thus, it was very much clear that the assessee had not offered its true and correct income to the department. Hence, in the opinion of the ACIT Circle-4, Ahmedabad, penalty of Rs.1,48,088/- @ 100% of tax sought to be evaded of levied against the assessee.
6. Against the said order assessee preferred first statutory appeal before the learned CIT(A), who confirmed the order of the authority below.
7. We have carefully considered the penalty order and the facts of the case and written submissions of the appellant and learned AR stated that the assessee has not concealed anything because everything was on record and the audited balance sheet, quantitative details etc. This was a simple mistake on the part of assesses.
8. Upon pointing out by the AO, the assessee immediately agreed for the same and also the assessee did not file appeal against the assessment order.
9. We are of the opinion in such case penalty will survive provided, if there is any tax sought to be evaded but in this case, the AO has increased the closing stock but there is no parallel increase in the next year's opening stock. Meaning thereby, the assessee's income increased ITA No.2250/Ahd/2013 G-One Agro Products Ltd. vs. ACIT Asst.Year -2009-10 -4- in the current year but there is no parallel increase in next year's opening stock. Thus, the assessee has already paid the tax in next year. So practically, there is not tax which has been sought to be evaded, hence the assessee is out of the purview of Section 271(1)(c) of the Income Tax Act, 1961.
10. Apart from this, we have seen the penalty notice but AO has failed to record adequate satisfaction in the notice and AO had not satisfied, whether assessee has concealed the particular income or furnished inaccurate particulars of income.
11. Therefore, we are of the opinion that this is a fit case, where penalty should be deleted. Order of the CIT(A) set aside and appeal of the assessee is allowed for statistical purpose.
12. In the result, appeal of the assessee is allowed for statistical purpose.
This Order pronounced in Open Court on 31/03/2017
Sd/- Sd/-
iznhi dqekj dsfM;k महावीर साद
(लेखा सद
य) ( या यक सद
य)
(PRADIP KUMAR KEDIA) (MAHAVIR PRASAD)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Ahmedabad;
Priti Yadav, Sr. Ps
Dated 31/03/2017
ITA No.2250/Ahd/2013
G-One Agro Products Ltd. vs. ACIT
Asst.Year -2009-10
-5-
आदे श क ! त#ल$प अ%े$षत/Copy of the Order forwarded to :
1. अपीलाथ" / The Appellant
2. #यथ" / The Respondent.
3. संबं3धत आयकर आयु5त / Concerned CIT
4. आयकर आय5 ु त(अपील) / The CIT(A)-VIII, Ahmedabad.
5. 6वभागीय त न3ध, आयकर अपील*य अ3धकरण, अहमदाबाद / DR, ITAT, Ahmedabad
6. गाड फाईल / Guard file.
आदे शानुसार/ BY ORDER, स#या6पत त //True Copy// उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad True Copy
1. Date of dictation 29/03/2017(dictation-pad 3 pages attached at the end of this appeal-file)
2. Date on which the typed draft is placed before the Dictating Member 30/03/2017
3. Other Member...
4. Date on which the approved draft comes to the Sr. P.S./P.S...30/03/2017
5. Date on which the fair order is placed before the Dictating Member for pronouncement......
6. Date on which the fair order comes back to the Sr. P.S./P.S.......
7. Date on which the file goes to the Bench Clerk.....................
8. Date on which the file goes to the Head Clerk..........................................
9. The date on which the file goes to the Assistant Registrar for signature on the order..........................
10. Date of Dispatch of the Order..................