9911796707
TMI Blog2010 (3) TMI 1284X X X X Extracts X X X X X X X X Extracts X X X X ..... d to associate companies? (3) Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the CIT(A) in deleting the disallowance of Rs.2,93,439/- made on account of unexplained expenditure? (4) Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the CIT(A) in deleting the addition of Rs.6,02,31,163/- made on account of difference between stock as per the books of account and stock as per stock statements submitted to the banks? (5) Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the CIT(A) in directing to exclude the sales tax and excise duty and the interest receipts from the total turnover while computing deduction u/s. 80HHC of the Act? 2. The respondent company is a manufacturer of bulk drugs and fine chemicals. Apart form this business, the company also owns travelling business under the name of Adiman Travels and business centre under the name of Dishman Business Centre. The assessment year is 2000-2001. The respondent-assessee filed return of income on 30.11.2000 declaring total income of Rs.69,55,240/- which came to be processed under section 143(1) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lding of shares and allowed the ground by holding that the capital gain was a 'Long-term Capital Gain' and directed the Assessing Officer accordingly. 3.2 The Tribunal agreed with the reasoning adopted by Commissioner (Appeals) and held that the condition relating to listing 'any other security' in a recognised stock exchange was not applicable to shares, and that gain on sale of shares, after holding the same for 12 or more months was 'Long-term Capital Gain' and accordingly, rejected the ground. 3.3 Section 2(42) of the Act which defines 'short term capital asset', insofar as the same is relevant for the purpose of present appeal reads as under:- (42A) Short term capital asset means a capital asset held by an assessee for not more than thirty six months immediately preceding the date of its transfer: Provided that in the case of a share held in a company or any other security listed in a recognised stock exchange in India or a unit of the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963) or a unit of a Mutual Fund specified under clause (23D) of section 10 or a zero coupon bond, the provisions of this clause shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eserves and surplus which were totally interest free. That even if it is assumed that the assessee had diverted the said Rs.4.5 crores to the group concerns as and by way of share application money, the assessee was having sufficient non-interest bearing funds to give by way of advance for making investment without charging any interest. Therefore, there was no question of disallowing proportionate interest. On facts also, both the authorities have concurrently found after appreciating the evidence on record that the assessee had interest free funds in excess of the investments in question. 5. In relation to question no.(3), the Commissioner (Appeals) has recorded the following findings of fact:- 9.2 I have, perused the certificate issued by the tax auditors within it was clarified and explained as to way the difference arose in the first place! It was clarified by the auditors that for the purpose of tax audit report he has considered the net balance after netting of respective debits and credits where as the ledger account obviously shows the gross balance. If this netting off is taken out, there is no difference between the said two figures. I, therefore hold that there is no di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee, the Assessing Officer noticed that the closing stock shown in the Bank statement as on 31st March, 2000 was to the tune of Rs.24,45,46,482.91 weighing 1188.49 metric tonnes. The Assessing Officer compared the quantity of stock shown in the statement submitted to the Bank and computed the difference in quantity of stock shown to the Bank and the stock as per books and found that there was an excess quantity in the stock statement offered as security for availing loan facility. He accordingly quantified the value of excess stock of raw materials and finished goods as shown to the Bank at Rs.6,02,31,163/- and made an addition accordingly. 6.1 Learned Senior Advocate for the appellant submitted that the facts mentioned in paragraphs 34 and 35 of the Tribunal's order, are incorrect. That closing stock as on 31st March, 2000 as per Schedule-G to the audited balance-sheet was Rs.24,03,38,865/- which consisted of finished goods, workin- progress and raw material. The figure taken by the Assessing Officer as per Annexure-20 to the audit report consisted of only raw material and finished goods but not the work-in-progress. However, the Assessing Officer in the assessment orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner (Appeals) which was as a result of appreciation of factual position available in the assessee's books of account which were duly produced before the Assessing Officer also. The Tribunal further noted that it was abundantly clear from the assessment that the Assessing Officer had duly noted the availability of work-in-progress to the tune of Rs.12,01,48,923/- as per Schedule-G of the balance-sheet whereas he has failed to consider the same while comparing the quantity-wise stock as per books with the quantity-wise stock as per statement furnished to the Bank. That having noticed the details of closing stock as per Annexure-20 to the Tax Audit Report, it was obligatory for the Assessing Officer, to get the position clarified from the assessee and to provide the assessee an opportunity to explain as to why the work-in-progress has not been shown in Annexure-20 to the audited balance-sheet. The Tribunal accordingly rejected the ground of Revenue and confirmed the order of the Commissioner (Appeals). 6.3 Thus, both the Tribunal as well as Commissioner (Appeals) have, upon appreciation of the evidence on record, concurrently found that there was no difference in the stock qu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
