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Issues:
1. Addition of Rs. 2,30,000 under s. 43B for unpaid purchase tax 2. Addition of Rs. 5,44,000 for understatement of stock of rice basmati Analysis: 1. The first issue pertains to the addition of Rs. 2,30,000 under s. 43B for unpaid purchase tax. The CIT(A) deleted the addition based on the confusion regarding the date of the cheque and the encashment date, which was prior to the due date for filing the return. The Tribunal upheld the CIT(A)'s decision citing various court judgments, including the Hon'ble Patna High Court's decision in Jamshedpur Motor Accessories Stores case. The Tribunal considered the amendment to s. 43B as clarificatory and retrospective, in line with the decision in CIT vs. Vegetable Products Ltd. The Tribunal favored the assessee based on the principle of choosing the view favoring the assessee when two reasonable views exist. 2. The second issue involves the addition of Rs. 5,44,000 for understatement of stock of rice basmati. The Assessing Officer made this addition as unexplained investment in the stock of rice basmati weighing 1088 qtls. The CIT(A) deleted the addition, accepting the assessee's explanation that the excess stock shown to the bank was part of Rice Parmal declared as Rice Basmati for obtaining higher overdraft facilities. The Tribunal noted that the assessee maintained statutory registers and submitted statements to the Directorate of Food & Civil Supplies Deptt., with no discrepancies pointed out by the Assessing Officer. Citing judgments from the Madras High Court and previous Tribunal decisions, the Tribunal upheld the CIT(A)'s decision, ruling in favor of the assessee. In conclusion, the Tribunal dismissed the Revenue's appeal, upholding the CIT(A)'s decision to delete both additions. The Tribunal found no infirmity in the reasoning and conclusions of the CIT(A), relying on legal precedents and the assessee's explanations regarding the disputed additions.
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