9911796707
TMI Blog2012 (8) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... in qualitative or quantitative terms as what had to be verified was whether the loss was in the vicinity of 4%, which has been held to be reasonable by the Tribunal. The matter be remitted to the AO for the purposes of determining / verifying as to whether gas in the pipeline in respect of the assessment year 2005-2006 has been included in the figure of closing stock or not. If the Assessing Officer finds that there is gas in the pipeline, which has not been included in the closing stock, to that extent, the same shall be added back to the closing stock and insofar as the figure of 3.46% of the purchases is concerned, the same shall be modified accordingly. - ITA 155/2012 - - - Dated:- 22-8-2012 - MR JUSTICE BADAR DURREZ AHMED, MR J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal held as under:- Accordingly, the percentage of loss which works out to be 4% of the purchases during the year under consideration appears to be reasonable, subject to verification 3. In view of the above observation, the Tribunal, in that case, set aside the order of the lower authorities and restored the matter to the file of the Assessing Officer for deciding the issue afresh in the light of the observations contained in the said order. 4. We may point out that in the case of the present assessment year, namely, 2005-06, in the first round, a similar order was passed by the Tribunal by virtue of its order dated 22.04.2009 in ITA 471/Del/2009. Thereafter, the Assessing Officer, according to the learned counsel for the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t expert opinion was not obtained from GAIL or ONGC etc. 3. We have considered the facts of the case and submissions made before us. We are of the view that the AO was bound to follow the directions of the Tribunal furnished for this year in decision dated 22.4.2009, in which it is mentioned that the matter has already been restored to the file of the AO for assessment years 2002-03 to 2004-05. Accordingly, the matter was also restored to the file of the AO for this year. However, in the order for assessment year 2002-03 dated 25.07.2008, a clear finding was given that loss of about 4% of purchases is reasonable subject to verification. Instead of verifying the percentage of loss, the AO reproduced his earlier order. The loss of 3.4% is b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter should be remitted to the Assessing Officer to ascertain as to whether the figure of closing stock includes gas in the pipeline or not. Both the counsel are agreed that if there is any gas in the pipeline, the same has to be included as part of closing stock. 9. Therefore, we dispose of this appeal with the direction that the matter be remitted to the Assessing Officer for the purposes of determining / verifying as to whether gas in the pipeline in respect of the assessment year 2005-2006 has been included in the figure of closing stock or not. If the Assessing Officer finds that there is gas in the pipeline, which has not been included in the closing stock, to that extent, the same shall be added back to the closing stock and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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