2024 (1) TMI 1230

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ber 12, 2014 passed by the Income Tax Appellate Tribunal "B" Bench, Kolkata in ITA No. 416/Kol/2014 for the assessment year 2009-2010. The appeal was admitted on 15.10.2015 on the following substantial questions of law:- (a) Whether on the facts and in the circumstances of the case, the Learned Income Tax Appellate Tribunal, "B" Bench erred in law in quashing the order under Section 263 of the Income Tax Act, 1961 passed by the Commissioner of Income Tax, Kolkata-XII? (b) Whether on the facts and in the circumstances of the case the Learned Income Tax Appellate Tribunal, "B" Bench erred in law in holding that the Commissioner of Income Tax could not establish order under Section 143(3) as erroneous and prejudicial to the i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d affirmed the proposal in the show cause notice and directed the assessing officer to make necessary investigation on the three issues pointed out and pass orders in accordance with law. Aggrieved by such order, the assessee preferred appeal before the tribunal. The tribunal allowed the appeal and challenging the said order this appeal has been preferred by the revenue. The substantial questions of law on which the appeal was admitted is though three in number all pertain to the correctness of exercise of powers by the CIT under Section 263 of the Act. With regard to the alleged allegation of understatement of closing stock, the assessee has submitted that they had valued the stock at cost on First-in First-out basis or the market price wh....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng the course of the original proceedings. 6. The factual aspects relating to the other two issues, were also elaborately considered by the learned tribunal. The tribunal pointed out that the records were available before the assessing officer during the assessment proceedings as well as before the CIT in the initial proceedings and the assessee also filed a paper book before the tribunal enclosing item wise details of closing stock valuation. The other documents which were filed by the assessee were also taken note of by the tribunal which includes the details filed before the bank namely the stocks statements for hypothecation and the value which was found to be exactly identical. Thus, taking note of the aspect that the stock statemen....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ances under which the power under Section 263 of the Act could be resorted to was elaborately discussed. Reliance was also placed in the decision of this Court in Principal Commissioner of Income Tax - 1, Kolkata Versus M/s. Britannia Industries Limited in ITAT No. 211 of 2022 dated 23.12.2022 and Principal Commissioner of Income Tax Asansol Versus Gunja Samabay Krishi Unnayan Samity Limited in ITAT No. 270 of 2022 dated 13.01.2023 for the same proposition. 9. In the preceding paragraphs, we have noted as to the exercise conducted by the assessing officer in the scrutiny assessment which was examined by the tribunal and found that the due enquiry conducted by the assessing officer and after perusal of the documents, stock register etc. t....