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TMI Blog2015 (12) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... 13 (O&M) - - - Dated:- 15-10-2015 - Ajay Kumar Mittal And Ramendra Jain, JJ. For the Appellant : Mr. Vivek Sethi, Adv For the Respondent : Mr. Salil Kapoor, Mr. Saurabh Kapoor, Mr.Sumit Lalchandani and Mr. Anil Miglani, Adv ORDER Ajay Kumar Mittal, J. 1. This order shall dispose of ITA Nos.49 and 50 of 2013 as according to the learned counsel for the parties, the issue involved in both the appeals is identical. However, the facts are being extracted from ITA No.49 of 2013. 2. ITA No. 49 of 2013 has been filed by the revenue under Section 260A of the Income Tax Act, 1961 (in short, the Act ) against the order dated 20.11.2012, Annexure P.3 passed by the Income Tax Appellate Tribunal, Amritsar Bench Amritsar in ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 61 ignoring the fact that the AO has rightly made the addition by thoroughly examining assessee's trading/manufacturing account and elaborately discussing each and every relevant aspect and found that unaccounted production and sale had taken place throughout the year which fact has also been confirmed by the learned CIT (A)? 3. A few facts relevant for the decision of the controversy involved as narrated in ITA No.49 of 2013 may be noticed. The assessee filed its return of income on 30.10.2007 declaring total income of ₹ 9,29,133/-. During the assessment proceedings, the Assessing Officer made addition on the basis of the data submitted by the assessee (Chart A) in which details of monthwise consumption of various raw materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 11.89% higher rate than the average sale rate of Angles and closing stock of rods was valued at rates 52.52% higher than the average sale rate of rods. The closing stock of scrap was valued at rates 95.92% higher than its average sale rate. He valued the sale rate of the production of 10117.48 MTS of finished goods of angle and rod and 432.83 MTS of scrap at the rate taken in closing stock for valuing them to arrive at the difference in sale consideration of ₹ 16,53,07,623/- to which GP at the rate of 4.75% of cost price was added to arrive at the addition of ₹ 17,31,59,753/-. Aggrieved by the order, the assessee filed appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. Vide order dated 31.12.2010, Annexure P.2, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oks were not reliable and the same were rejected. On appeal by the assessee, the CIT(A) recorded that the Assessing Officer was not justified in taking the rate of goods in the closing stock as the rate of sale of goods for estimating the unaccounted sales since the sale rates may vary during the year and the closing stock rates are only the rates at the end of the year. When the unaccounted production and sales had taken place throughout the year, application of the average rate of sales during the year should give a better picture of the unaccounted sales. Since the entire cost of raw material and manufacturing cost had been debited to the profit and loss account by the assessee and the addition was only on account of suppression of sales ..... X X X X Extracts X X X X X X X X Extracts X X X X
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