9911796707
TMI Blog2012 (12) TMI 658X X X X Extracts X X X X X X X X Extracts X X X X ..... ss objection in support of the order of the ld. CIT(A). The appeal and the cross objection were heard together and are being disposed of through this consolidated order. 2. The facts in brief borne out from the record are that during the course of assessment proceedings, the Assessing Officer noticed that the closing stock of the assessee has been undervalued. Accordingly he asked the assessee to explain as to why the valuation of rice at Rs.997.68 per quintal, rice bran at Rs.405 per quintal, paddy husk at Rs.130 per quintal and paddy at Rs.587.29 per quintal, inclusive of purchase expenses should not be made. The assessee vide reply dated 9.8.2007 has stated that he hulled two types of paddy i.e. common and grade-I and valuation has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accepted the submissions of the assessee regarding the rates of valuation of closing stock of all items except the rate of rice bran. The ld. CIT(A) examined the remand report in the light of assessee's contention and finally accepted the valuation of closing stock as declared by the assessee and deleted the addition. 4. Now the Revenue has preferred an appeal before us and placed heavy reliance upon the order of the Assessing Officer. 5. The ld. counsel for the assessee, on the other hand, has submitted that while adjudicating the issue the ld. CIT(A) has called for remand report from the Assessing Officer and in the remand proceedings the Assessing Officer has accepted the method of valuation adopted by the assessee with respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. CIT(A) as under:- "The contents of the order have been considered and submission of the appellant perused. Remand report was also obtained from the assessing officer. The relevant extract of the report is reproduced as under:- "After allowing opportunity of being heard to the assessee and going through the assessment order, facts available in the records, the report of the undersigned is as under:- ".......The assessee has submitted before the Commissioner of Income Tax (Appeals) that the assessing officer has not disbelieved quantity of closing stock but has enhanced the value in monetary terms. Rice Mill Unit Disclosed Estimated Paddy Common 694.51 Q [email protected] [email protected] Gr. I 330.10 Q [email protected] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lued closing stock more than sales price in anticipation. This fact shows the bonafides of the assessee." Regarding rice bran, he submitted in the remand report that "The assessee has disclosed 350/- per quintal and the assessing officer has valued 390/- per quintal and your goodself has accepted the sales rate of rice bran as 350/- per quintal in trading unit. The claim of the assessee is without base & also not justified. The assessing officer has increased the value of closing stock on the basis of rates obtained from Krishi Utpadan Mandi Samiti, which is reasonable & justified. Therefore, the appeal may be decided on the basis of the facts, mentioned in the assessment order." The A.O. in the remand report, has accepted the sub ..... X X X X Extracts X X X X X X X X Extracts X X X X
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