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TMI Blog2012 (12) TMI 658X X X X Extracts X X X X X X X X Extracts X X X X ..... factors such as quality of produce, the prevailing rates in the market, content of moisture in the produce and demand in the market etc. Therefore, the observation of the A.O., that the rates fixed by Krishi Utpadan Mandi Samiti are reasonable and justified, do not have any rational or scientific basis. Thus the rate adopted by the AO is not justified - in favour of assessee. - ITA No.646/LKW/2011 & C.O. No. 11/LKW/2012 - - - Dated:- 2-7-2012 - SHRI SUNIL KUMAR YADAV AND SHRI MEHAR SINGH, JJ. Department by: Smt. Swati Ratan, D.R. Assessee by: Shri. O. P. Gupta, Advocate ORDER PER SUNIL KUMAR YADAV: This appeal is preferred by the Revenue against the order of the ld. CIT(A) on a solitary ground that the ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Assessing Officer adopted the rates as on 31.3.2005 given in the Certificate issued by the Secretary, Krishi Utpadan Mandi Samiti, Sitapur and valued the closing stock at Rs.54,32,439 against the value of closing stock declared by the assessee at Rs.45,73,711 and made the addition of Rs.8,58,728 towards undervaluation of closing stock. 3. The assessee preferred an appeal before the ld. CIT(A), but did not find favour with him and thereafter the assessee preferred an appeal before the Tribunal and the Tribunal vide its order dated 30.3.2009 restored the matter back to the ld. CIT(A) with a direction to adjudicate the issue on merit after affording opportunity of being heard to the assessee and also the Assessing Officer. Consequently, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer and the ld. CIT(A) has called a remand report from the Assessing Officer and in the remand proceedings the Assessing Officer has accepted most of the contentions of the assessee except in the case of rate of rice bran, for which no explanation was furnished as to why he is not accepting the rate declared by the assessee. Moreover, the Assessing Officer has himself admitted that the rates varies day-to-day and whatever rates quoted by the Secretary, Krishi Utpadan Mandi Samiti, Sitapur are levy rates and it cannot be said that all the agricultural produce are sold on that very rate. We have also carefully examined the order of the ld. CIT(A) and we find that he has rightly adjudicated the issue under the given facts and cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion @ 572.80 per quintal @ 602.80. Average comes to Rs. 582.51, without any basis. Taxes on purchase cannot be said to be a part of purchase price. Rice Disclosed Estimated Common 2900 Q 2595500@895 5865200@988 Gr.I 450 Q 451527@450 [email protected] Broken 1470.40Q 896944@610 Broken not accepted, Added Common 1452558 The assessing officer has quoted the rates of rice in his assessment order, obtained from Mandi Parishad, which are levy rates. The assessee himself has sold to Government on these rates. There was levy share in closing stock and it was all release shares and was not sold in A.Y. 2005-06, this share was sold in A.Y. 2006-07. Valued The assessee has sold common @ 740/- pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny factual basis to reject the rate adopted by the assessee. The only basis of adopting enhanced rate of valuation was the report of Krishi Utpadan Mandi Samiti which cannot be considered as sacrosanct because these rates are determined in a particular manner which cannot be applied in all the circumstances and all the times for every quality of a particular product. The rates are dependent upon number of factors such as quality of produce, the prevailing rates in the market, content of moisture in the produce and demand in the market etc. Therefore, the observation of the A.O., that the rates fixed by Krishi Utpadan Mandi Samiti are reasonable and justified, do not have any rational or scientific basis. Therefore, in my considered opinio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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