2012 (3) TMI 584

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....sed under Section 271(1)(c) of the Act for the same assessment years in respect of the same assessees. All these appeals were heard together and are disposed of by way of common order for the sake of convenience. 2. First we take up the quantum appeal in the case of Gomti Silk Mills Ltd. (ITA No.2898/Ahd/2006 for A.Y.2003-2004). The Ground Nos.1 and 2 read as under: "1. The ld.CIT(A) erred in confirming addition of Rs. 7,68,38,132/-" 2. The ld.CIT(A) erred in confirming addition of Rs. 1,12,457/- in respect of purchase made from M/s.Sunita Silk Mills. 3. It is submitted by the learned counsel for the assessees that page no.98 of the paper book is the Profit & Loss account from which, it can be seen that only Rs. 7,40....

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....atter back to the AO for fresh decision in the light of the above discussions after providing adequate opportunity of being heard to the assessee. Ground No.1 is allowed for statistical purpose. 5. For Ground No.2 also, we feel that the AO should decide the issue afresh and hence we restore this matter also to the AO. The Ground No.2 is also allowed for statistical purpose. 6. The Ground No.3 of the assessee's appeal reads as under: "3. The ld.CIT(A) misconstrued the relevant provisions of the Act and particularly section 50C in confirming the addition of Rs. 12,98,438/-" 7. It was submitted by the learned counsel for the assessee that this issue should also go back to the file of the AO for fresh decision after referring ....

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.... 234B and 24C of the Act. 11. It was submitted by the learned AR that in this case also, P&L account of the assessee is available at page no.101 of the PB, as per which, the total consumption of raw-material debited to P&L account is 18,17,202/-. He also drew our attention to page no.104 of the PB and pointed out that the closing stock of grey-cloth have been taken in the present year at Rs. 3,69,46,036/- as against the opening stock of Rs. 18,57,060/-, and hence, the entire purchase of grey cloth is lying in the closing stock in the present year. Therefore, in this case also, the matter should go back to the file of the AO for considering this aspect. The learned DR supported the order of the AO. 12. We have considered rival submissi....