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2015 (10) TMI 1866 - AT - Income TaxAddition on Excess Stock of Copper Scarp - Held that - Revenue Authorities have not given any independent finding on the basis of any evidence except the documentary evidence collected by the Customs & Excise Department against which the assessee s appeal is pending before the Custom, Excise and Service Tax Appellate Tribunal, New Delhi. In the interest of justice, we are of the view that the issue in dispute requires reconsideration/ readjudication at the level of the AO. Accordingly, we direct the AO to decide the issue in dispute afresh under the law, keeping in view of the decision of Customs, Excise & Service Tax Appellate Tribunal, New Delhi, after giving full opportunity to the assessee of being heard and to produce any evidence for substantiating its claim before the AO. We make it clear that assessee has statutory right to appeal, if so, advised, before the Competent Authority. - Decided in favour of assessee for statistical purposes.
Issues:
1. Addition of excess stock of Copper Scrap 2. Charging of interest u/s. 234B 3. Decision of the First Appellate Authority based on Excise Authorities' findings 4. Reconsideration of the issue by the Assessing Officer Analysis: Issue 1: Addition of Excess Stock of Copper Scrap The appellant contested the addition of excess stock of Copper Scrap amounting to &8377;21,86,669, alleging it was based on a guesstimate by excise personnel without proper weighing. The appellant argued that the addition was unjustified, as the physical verification conducted by the excise department was flawed and not in accordance with the law. The appellant cited various tribunal cases to support their claim. The Commissioner (Appeals) upheld the addition, relying on the Excise Authorities' findings. However, the ITAT Delhi directed the Assessing Officer to reconsider the issue, emphasizing the need for independent evidence and giving the appellant an opportunity to substantiate their claim. Issue 2: Charging of Interest u/s. 234B The appellant denied liability for the interest charged under section 234B. The ITAT Delhi did not provide a specific ruling on this issue in the summarized judgment. Issue 3: Decision of the First Appellate Authority The First Appellate Authority decided against the appellant based on the findings of the Excise Authorities without independent evidence. The appellant requested the issue to be sent back to the Assessing Officer for reconsideration in line with the decision of the Customs, Excise & Service Tax Appellate Tribunal, New Delhi. Issue 4: Reconsideration by the Assessing Officer The ITAT Delhi directed the Assessing Officer to reexamine the issue of excess stock of Copper Scrap, considering the decision of the Customs, Excise & Service Tax Appellate Tribunal, New Delhi. The appellant was granted the opportunity to present evidence and defend their position before the Assessing Officer. The ITAT Delhi allowed the appeal of the Assessee for statistical purposes, indicating a procedural victory without altering the substantive decision at that stage. This detailed analysis of the legal judgment provides insights into the arguments presented, the authorities' decisions, and the directions given by the ITAT Delhi for further proceedings.
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