2011 (9) TMI 1077

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....essment Year 2005-06. 2. In this appeal, the assessee has assailed the CIT(A)'s order in confirming the following additions made by the Assessing Officer:- (1) Rs. 19,79,284/- on account of illegal transportation (undisclosed sales).   (2) Rs. 1,71,309/- on account of illegal stock . (3) Rs. 25,000/- on account of compounding fees for illegal mining imposed by District Magistrate, Nainital. 3. We have heard both the parties and carefully perused the orders of the authorities below. 4. The assessee company is engaged in the manufacturing of stone grits and dara (mixture of small stones and stone dust from boulders and stone). These boulders and stones were extracted from Gola River from Haldwani after acquiring righ....

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....unsel for the assessee has submitted that identical issue had come for consideration before the Tribunal in the case of M/s. Uttarakhand Stone Products Pvt. Ltd., Haldwani in ITA No.347/Del/2009, where ITAT, New Delhi Bench `H' vide order dated 26th April, 2010, has restored this matter back to the file of the Assessing Officer for re-adjudication. It was further pointed out that in the case of M/s. Krishna Store Industries Pvt. Ltd. Vs. DCIT (ITA No.419/Del/2009), identical matter has been restored back to the file of the AO by ITAT, Delhi Bench `D', New Delhi vide order dated 23.12.2009. The learned counsel for the assessee further made a statement at the bar that the order passed by the District Magistrate, Nainital is subject to an a....

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....es of the State Government as corroborative piece of evidence and then determine the issue whether the assessee has excess tock or not at the end of the accounting year. This information received from the state Government would be the information, which comes out after the determination of issue in pursuance of the order of Divisional Commissioner, Nainital. Needless to say that observation made by us will not impair or injure the case of the A.O. or would cause any prejudice to the defense/ explanation of the assessee in the fresh proceedings. The A.O. shall afford due opportunity of hearing to the assessee." 11. Similarly, in the case of M/s. Krishna Store Industries Pvt. Ltd., the addition made by the A.O. on the basis of material fou....