Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT Audit :: Central Excise rule to resale the machines to a new company :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: form 3cd :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: list of goods taxed at 4% :: TDS :: ACCOUNTING STANDARDS :: VAT RATES
 
 
From the Courts »
  Vatsala Shenoy vs. JCIT (Supreme Court)
  Vatsala Shenoy vs. JCIT (Supreme Court)
 M.K.Overseas Pvt. Ltd. Vs. Pr.Commissioner Of Income Tax-06
 Arshia Ahmed Qureshi Vs. Pr. Commissioner Of Income Tax-21
 CHAUDHARY SKIN TRADING COMPANY Vs. PR. COMMISSIONER OF INCOME TAX-21
  Sushila Devi vs. CIT (Delhi High Court)
  Vatsala Shenoy vs. JCIT (Supreme Court)
 Deputy Director Of Income Tax Vs. Virage Logic International
 Commissioner Of Income Tax-3 International Taxation Vs. Virage Logic International India
 Pr. Commissioner Of Income Tax-06 Vs. Moderate Leasing And Capital Services Pvt. Ltd.
 ITO vs. Vikram A. Pradhan (ITAT Mumbai)

The Income Tax Officer,Ward1(1),Kumbakonam. Vs. Manmull Inderchand(HUF),Prop.Sujatha Jewellery 33 TSR Big Street, Kumbakonam.
June, 14th 2012
            IN THE INCOME TAX APPELLATE TRIBUNAL
                      `B' BENCH, CHENNAI

         BEFORE Dr. O.K. NARAYANAN, VICE-PRESIDENT AND
             SHRI VIKAS AWASTHY, JUDICIAL MEMBER

                            ITA No.787/Mds/2011
                          (Assessment Year: 2007-08)

The Income Tax Officer,                Vs.   Manmull Inderchand(HUF),
Ward1(1),                                    Prop.Sujatha Jewellery
Kumbakonam.                                  33 TSR Big Street,
                                             Kumbakonam.
                                             PAN:AAAHM4153N
    (Appellant)                                         (Respondent)

                    Appellant by   :   Mr. Vikramaditya, Sr. AR
                  Respondent by    :   None

                 Date of Hearing    : 7th June ,2012
         Date of Pronouncement      : 12th June, 2012

                                ORDER

    PER VIKAS AWASTHY, JUDICIAL MEMBER:

           The present appeal has been filed by the Revenue

    impugning order of CIT(A), Tiruchirapalli dated 3.2.2011.

    2.     The assessee is running jewellery business under the

    name and style of M/s. Sujatha Jewellery. The assessee filed

    return of income for the assessment year 2007-08 on

    27.03.2008 admitting total income of ` 1,78,470/-. The case of

    the assessee was selected for scrutiny              and notice under

    section 143(2) was issued to the assessee on 26.09.2008.

    The Assessing Officer vide order dated 16.12.2009 made
                                  2                   ITA No.787/Mds/11






addition on account of difference in valuation of closing stock

of gold and silver to the tune of ` 17,63,893/- and ` 2,45,784/-

respectively.     Apart from the above additions, the Assessing

Officer      made additions of ` 3,87,430/- on account of

unexplained credits in the books of accounts of the assessee,

and disallowed ` 42,654/-         on account of interest and `

92,352/- towards unaccounted sale of gold and silver.



3.      Aggrieved    against    the   assessment      order     dated

16.12.2009, the assessee preferred an appeal before the

CIT(A). The CIT(A) vide order dated 03.2.2011 partly allowed

the appeal of the assessee inter-alia deleting the following

additions made by the Assessing Officer:-

     i) Difference in valuation of closing stock of gold and silver

       ` 17,63,893/- and ` 2,45,784/- respectively;

      ii) Addition towards unexplained credits in        assessee's

        capital account;

     iii) Proportionate interest of ` 1,26,798/- under section 24

        considering the investment made in dwelling house out

        of the interest towards non-business purpose.
                                 3                   ITA No.787/Mds/11






     Aggrieved against the impugned order of the CIT(A), the

Revenue is in second appeal before the Tribunal assailing the

above findings of the CIT(A).

4.     Shri   Vikramaditya,     representing   the     Department

submitted that no stock register was produced by the

assessee before the Assessing Officer. He contended that

assessee did not respond to the notice issued under section

142(1) of the Act calling for evidence in support of the

calculation of closing stock declared by him.           He further

contended that the CIT(A) has erred in deleting the addition of

` 3,88,430/- towards unexplained credit by holding that mere

adjustments in the books of account will not constitute income

of the year unless it has not been assessed.            He further

submitted that the CIT(A) has not taken into consideration

the provisions of section 24 of the Act as the deduction can

be allowed only when the house was purchased or

constructed with the borrowed capital and during the period

when the house of the assessee was constructed, the

assessee did not borrow any sum for purchase/construction of

the house.
                               4                 ITA No.787/Mds/11



5.   None has appeared on behalf of the assessee.

6.   We have heard the submissions made by D.R. and

have gone through the orders passed by the lower authorities.

A perusal of the record shows that for valuation of stock, the

assessee has been following a particular method. The

Assessing Officer while valuating the closing stock relevant to

the assessment year 2007-08 has adopted FIFO method in

an arbitrary manner without justifying the reason for change in

valuation method.     Similarly, for other additions made, the

Assessing Officer has failed to give any cogent reasons for

making additions. Even the order of CIT(A) is sketchy and

non-speaking order.

7.    We, therefore,     in the interest of justice, deem it

appropriate to remand the matter back to the Assessing

Officer to decide the matter afresh by adopting method of

valuation of stock as adopted by the assessee in the earlier

years and thereafter calculate, difference if any, in the

valuation of closing stock as per the provisions of the Act and

also to decide other issues as per the provisions of law by

giving detailed reasons for making additions. Thus, we set
                                    5                    ITA No.787/Mds/11



aside the order of the CIT(A) and remand the matter back to

the Assessing Officer to decide the issues afresh within a

reasonable period of time after affording opportunity of

hearing to the assessee.

8.     The appeal of the Revenue is allowed in the above

terms for statistical purposes.

     Order pronounced in the open court on Tuesday, the 12th day of June,
     2012 at Chennai.


              Sd/-                                            Sd/-
 ( Dr. O.K.Narayanan )                             ( Vikas Awasthy )
    Vice President                                  Judicial Member
Chennai,
Dated the 12th June, 2012.

somu


Copy to:      (1) Appellant     (2) Respondent     (3) CIT
               (4) CIT(A)        (5) D.R.          (6) G.F.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions