Income Tax Appellate Tribunal - Jaipur
Shiv Edibles Ltd., Kota vs Acit, Kota on 4 October, 2018
vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj
IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR
Jh fot; iky jko] U;kf;d lnL; ,oa Jh foØe flag ;kno] ys[kk lnL; ds le{k
BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM
vk;dj vihy la-@MA No. 106/JP/2018
(Arising out of ITA No. 580/JP/2013)
M/s Shiv Edibles Ltd., cuke The ACIT,
237-A, Talwandi, Vs. Circle-1,
Kota. Kota.
LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAICS 0274 K
vihykFkhZ@Appellant izR;FkhZ@Respondent
fu/kZkfjrh dh vksj l@
s Assessee by : Shri Mahendra Gargieya (Adv.)
jktLo dh vksj ls@ Revenue by: Shri K.C. Meena (Addl. CIT)
lquokbZ dh rkjh[k@ Date of Hearing : 28/09/2018
mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 04/10/2018
vkns'k@ ORDER
PER: VIKRAM SINGH YADAV, A.M. The present miscellaneous application has been filed by the assessee against the order passed by the Co-ordinate Bench in ITA No. 580/JP/2013 dated 26.02.2018.
2. The ld. AR has basically contended that the ground raised by the Revenue before the Tribunal was in respect of rejection of books of accounts and another ground was regarding estimation of gross profit rate, however, on perusal of the findings of the Coordinate Bench, it appears that the entire focus of the Tribunal has been only in respect of 2 M.A. No. 106/JP/2018 M/s Shiv Edibles Ltd. ACIT correctness or otherwise of the invocation of provisions of Section 145(3) of the Act, however as far as estimation of gross profit is concerned, the said ground has not been decided by the Coordinate Bench and the same has resulted in miscarriage of justice and squarely affected the interest of the assessee. It was accordingly submitted that the matter may kindly be recalled to adjudicate ground No. 2 so raised by the Revenue.
3. The ld. DR is heard who has opposed the miscellaneous applications filed by the assessee.
4. On perusal of the order passed by the Coordinate Bench in ITA No. 580/JP/2013 dated 26.02.2018, we find that there were three grounds raised by the Revenue, first ground regarding the rejection of books of accounts, the second ground regarding the trading addition by adopting GP rate and the third ground regarding deletion of addition u/s 14A of the Act. However, on perusal of the findings of the Coordinate Bench in para 5 which is reproduced as under, we find that Ground No. 2 and 3 has escaped the attention of the Coordinate Bench and has not been adjudicated upon:-
"5. After hearing both the sides, the Bench find that the books of account of the assessee were rejected on account of various discrepancies noted by the Assessing Officer on account of shortage, valuation of closing stock and on account of low yield. The Assessing Officer has also clearly noted that the certain expenses has been increased disproportionately in relation to increase in turn over for example, packing material expenses were of Rs. 9,78,779/- in the A.Y. 3 M.A. No. 106/JP/2018 M/s Shiv Edibles Ltd. ACIT 2008-09, the same have been increased to 53,96,886/-. There was no closing stock of packing material. The turnover for A.Y. 2008-09 was more than 262 crores while the turnover for the year under consideration was around 300 crores. Thus, the increase in the expenditure on packing material is definitely disproportionate and the same have not been explained by the assessee. Further there is vast difference in the rate of opening stock, sales and closing stock. Such differences have been categorized as under:
Qty. Shown as per Rate difference Total difference cl. Stock (Kg) per Kg.
Refined oil 419602 13.17 55,26,158 Crude oil 398051 13.41 53,37,863 Mustered oil 251129 11.21 28,15,156
The assessee has not explained this difference with cogent reasons. Therefore, all these facts clearly establish that the book result declared by the assessee were not reliable. The ld. CIT(A) without giving finding on these various specific discrepancies noticed by the Assessing Officer has simply deleted the addition, therefore, the findings of the ld. CIT(A) are perverse. We set aside the order of the ld. CIT(A) and sustain the order of the Assessing Officer."
5. In light of above, we hereby recalled the order of the Coordinate Bench for the limited purpose of the adjudication of ground No. 2 and 3 raised by the Revenue in its appeal which reads as under:-
4 M.A. No. 106/JP/2018M/s Shiv Edibles Ltd. ACIT " (ii) deleting the trading addition of Rs. 30,21,370/- by adopting GP rate of 4.9% which was agreed to by the assessee during the course of assessment proceedings.
(iii) deleting the addition of Rs 7,37,336 made by the AO u/s 14A r/w Rule 8D"
5. We may add that even though the assessee has not highlighted the non-adjudication of ground no. 3 for reasons best known to it, given the fact that the said ground was not adjudicated upon by the Coordinate Bench, it is clearly a matter calling for our interference u/s 254(2) of the Act which we have acted upon.
6. The Registry is directed to list the matter for hearing on merits on 28.11.2018. Issue notice to both the parties. The parties are at liberty to file paperbook, if any, one week in advance of the scheduled date of hearing.
The miscellaneous application is disposed off with above directions.
Order pronounced in the open Court on 04/10/2018.
Sd/- Sd/-
¼fot; iky jko½ ¼foØe flag ;kno½
(Vijay Pal Rao) (Vikram Singh Yadav)
U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member
Tk;iqj@Jaipur
fnukad@Dated:- 04/10/2018.
*Santosh
vkns'k dh izfrfyfi vxzfs 'kr@Copy of the order forwarded to:5 M.A. No. 106/JP/2018
M/s Shiv Edibles Ltd. ACIT
1. vihykFkhZ@The Appellant- M/s Shiv Edibles Ltd., Kota.
2. izR;FkhZ@ The Respondent- ACIT, Circle-1, Kota.
3. vk;dj vk;qDr@ CIT
4. vk;dj vk;qDr@ CIT(A)
5. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur.
6. xkMZ QkbZy@ Guard File { M.A. No. 106/JP/2018} vkns'kkuqlkj@ By order, lgk;d iathdkj@Asst. Registrar