This appeal by the Revenue is directed against the order passed by the ld. CIT(A)-1, Aurangabad on 10-01-2018 in relation to the assessment year 2011-12.
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH, ‘A’ PUNE
BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND
SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER
Assessment Year : 2011-12
ACIT, Jalna Circle,
M/s.Saptashrungi Alloys Pvt.
Addl. MIDC Area,
Jalna – 431 203
PAN : AAICS2970E
Assessee by None
Revenue by Shri A.M. Mahadevan Krishnan
Date of hearing 13-09-2021
Date of pronouncement 13-09-2021
The only issued raised herein is against restricting the addition by the CIT(A) on account of suppressed production from Rs.5,05,56,718 to Rs.22,54,480.
2. Briefly stated, the facts of the case are that the assessee is engaged in manufacturing of MS billets from Sponge Iron and MS scrap. Thereafter, the Pr. CIT, vide his order u/s.263 dated 31- 03-2016, held the assessment order to be erroneous and prejudicial to the interest of the revenue. The AO, in the consequential proceedings, found that the assessee was involved in clandestine removal of goods without payment of excise duty to the tune of Rs.58,05,287 on the value of goods amounting to Rs.5,63,62,005/. After deducting such amount of excise duty paid by the assessee, the AO made an addition of Rs.5,05,56,718/- on account of unaccounted sales. The ld. CIT(A), relying on the Pune Tribunal orders in M/s. Rajuri Steel Pvt. Ltd. and M/s. Meta Rolls & Commodities Pvt. Ltd., held that the addition should be made only for the profit element embedded in such sales and not the entire amount of sales. Taking cognizance of the Tribunal view in identical circumstances, he restricted the addition to 4% of such sales. Aggrieved thereby, theRevenue has approached the Tribunal.
3.In the result, the appeal is dismissed.
Order pronounced in the Open Court on 13th September, 2021.
Please find attached the enclosed file for the full judgement