2014 (5) TMI 403

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.... Corporation engaged in the business of buying and selling of petroleum products. For the A.Y 2011-12, the Assessing Officer framed assessment making several additions totalling to approximately Rs. 498 Crores [rounded off]. The petitioner has filed appeal against such order of assessment dated 18th February 2014. Such appeal is pending. Pending such appeal, the petitioner applied for stay against recovery of the tax demand. On such stay petition, the respondent passed impugned order dated 26th March 2014 and provided as under : "10. Considering all the above issues and discussion, your application for stay of demand is decided on the following terms and conditions :- [i] Total demand for A.Y 2011-12 of Rs. 218,86,37,310/=. Out of ....

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....the measurement referred to as MMBTU. It is sold also sometime in MMBTU and sometime in cubic meter of gas. According to the assessee, if the figures of purchase and sales appropriately converted into a single unit are taken into account, there would be no excess of stock. The petitioner had adopted conversion ratio of 81/25200 from MMBTU to million cubic meter of gas. It is pointed out that if such conversion is accepted, there would be no discrepancy in the gas purchased and sold during the year under consideration. The petitioner further points out that in any case, the petitioner purchased 101.19 million cubic meter of gas [over and above 125.43 MMBTU] and sold 3,417.34 million cubic meter of gas [in addition to 109.68 MMBTU]. The petit....

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..... It is respectfully submitted that in A.Y 2011-12, the difference in MMBTU between purchases and sales is 15.75 million MMBTU [125.43 - 109.68]. In the assessment order, it is further noted that the assessee has shown closing stock of 3.15 million MMBTU. Thus, the Assessing Officer has considered the difference to be 12.60 million MMBTU [15.75 less 3.15]. However, the Assessing Officer not given any benefit of purchase and sale of lakh M3 gas by converting it at the same rate as shown by the assessee in A.Y 2009-10 and as applied by the A.O in A.Y 2010-11 and confirmed by CIT (A). As per annual report, there was purchased of 101.19 lakh M3 gas and sale of 3417.94 lakh M3 gas (ie., net consumption of 3316.75 lakh M3 gas). By applying the sa....