9911796707
TMI Blog2013 (7) TMI 845X X X X Extracts X X X X X X X X Extracts X X X X ..... very significant one. Assessee has given explanation for the reasons of the fall in GP, but the authorities below have summarily rejected it without putting any cogent basis for rejecting the submissions of the assessee. Further, as regards the purchase from the sister concern is concerned, if AO was not satisfied with the rate of purchase, he should have brought on record appropriate materials for proposition that the said purchases which were at higher rates. However AO has not been able to bring on record any such data. Furthermore, assessee has submitted that the assessee has given all the details which as per AO not submitted some of the details - matter remitted to the file of AO to consider the issue afresh. Appeal filed by the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the fact that the assessee has not challenged the stamp duty valuation before the Stamp Valuation Authority in respect of computation of Short Term Capital Gains without appreciating the fact that the provisions of Section 50C (2) come into play only in those cases where such valuation is not contested. 5. On facts and in law the learned CIT(A) was wholly unjustified in summarily rejecting the assessee's pleas regarding the addition to the Trading results without dealing explicitly with various submissions including Judicial pronouncements, various details furnished before his predecessor and him along with various clarifications filed during the course of Appellate proceedings which form a part of the record. 6. That on facts and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was treated under the head building against which the WDV of building of Rs. 7,56,842/- was adjusted in the short term capital gain of Rs. 17,51,158/- (Rs. 25,08,000/- - Rs. 7,56,842/-) had been computed. 3.1 Assessing Officer further found that the sale consideration of the building has been declared by the assessee which was at Rs. 25,08,000/- which was valued by the stamp valuation authority at Rs. 32,90,000/- and as such there as short valuation of Rs. 7,82,000/- (Rs. 32,90,000 - Rs. 25,08,000) by the assessee in the return. Accordingly, the Assessing Officer invoked the provision of section 50A and 50C and made the addition of Rs. 7,82,000/-. 4. Before the Ld. Commissioner of Income Tax (A) assessee submitted that the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not applicable to lease hold property is not correct. 6.1 We have carefully considered the submissions and perused the records. We find that in this case Assessing Officer has made the addition of Rs. 7,82,000/- by invoking the provision of section 50C. Assessee has submitted that Assessing Officer should have referred the matter to the DVO in terms of section 50C(2) as the assessee has objected to the valuation by the stamp valuation authority. Furthermore, it is the assessee's contention that the provision of section 50C are not applicable to the lease hold property. This ground was not raised before the authorities below. In our considered opinion, interest of justice, will be served if the matter is remitted to the file of the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upplied in carton boxes whereas the rates of tin containers charged by the assessee firm were almost the same which you may verify from the copies of purchase orders and also sale bills. The total purchases of packing material of Rs. 1,24,015/- only last year as compared to total purchases of Rs. 579,507/- during the year under consideration which includes purchase of carbon boxes for Milk Food Limited for Rs. 4,74,446/- from M/s Virmani Corrugated Industries. Copies of ledger account of packing material and M/s Virmani Corrugating Industries are enclosed. Another reason for fall in GP Rate was that the rates of tin plates had increased during the year as compared to preceding financial year. Copies of purchase bills of tin plates for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration. Accordingly, the addition of Rs. 4,16,558/-. 7.4 Upon assessee's appeal Ld. Commissioner of Income Tax (A) confirmed the action of the Assessing Officer. 8. Against the above order the Assessee is in appeal before us. 9. We have heard both the counsel and perused the records. Ld. Counsel of the assessee submitted that the assessee has submitted all the requisite details to the Assessing Officer and there has been no lack of furnishing of details on the part of the assessee. He further submitted that assessee had given ample submissions regarding the reasons of the fall in GP, but the same have been summarily rejected by the authorities below. Ld. Departmental Representative on the other hand, relied upon the orders of the auth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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