Filatex India Ltd. v. Dy. CIT

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The Tax PublishersI.T.A. Nos. 798, 799, 800, 801 & 802/Del/2010, I.T.A. Nos. 963, 1267, 1268 & 1269/Del/2010 2013 TaxPub(DT) 0870 (Del-Trib) INCOME TAX ACT, 1961 --Income from undisclosed sources--Addition under section 69 Suppression of sales-- Income Tax Act, 1961, Section 69 INCOME TAX ACT, 1961 --Depreciation--Actual cost Amendment in section 43A with effect from 1-4-2003-- Income Tax Act, 1961, Section 43A INCOME TAX ACT, 1961 --MAT--Book profit under section 115JA/JB Business loss or unabsorbed depreciation being nil-- Income Tax Act, 1961, Section 115JA/JB In The ITAT, Delhi 'B' Bench R.P. Tolani, J.M. & Shamim Yahya, A.M. Filatex India Ltd., v. DCIT I.T.A. Nos. 798, 799, 800, 801 & 802/Del/2010, I.T.A. Nos. 963, 1267, 1268 & 1269/Del/2010' A.Y.s. : 2001-02, 2002-03, 2003-04, 2004-05 & 2005-06 15 February 2013 Assessee by : Ashwani Kumar, CA Department by : Sudha Kumari, C.I.T. (D.R.) ORDER These appeals by the assessee and revenue emanate out of orders of the learned Commissioner (Appeals) for the concerned assessment years. Since the issues are connected and the appeals were heard together. These are being consolidated for the sake of convenience by this common order. 2. One common issue raised in the assessee appeal from assessment years 2001-02 to 2005-06 pertains to addition as income from undisclosed sources representing suppression of sales on account of under valuation of sales of waste. 2.1 In this case the search and seizure activities were carried out at the office of the assessee company. During the course of search proceedings, it came up that a search by Excise Department has been carried out at the factory premises of the assessee company. During the course of search, it was found that the assessee has sold out the waste of @%₹5.5 per kg. whereas the actual sales price was Rs. 20 per kg. Statement of Shri Sanjay Agrawal, GM (Marketing) was recorded during this search wherein he admitted that the waste yarn was being shown to be sold @ Rs. 5.50 per kg. where as reality it was sold for ₹20 per kg. A show cause notice was issued by the Joint Director, DGCEI, Regional Unit, Pune wherein the differential value of sales was worked out at Rs. 91,81,006 to financial year 2000-01 to 2004-05 as below : SUBSCRIBE FOR FULL CONTENT

The Tax PublishersI.T.A. Nos. 798, 799, 800, 801 & 802/Del/2010, I.T.A. Nos. 963, 1267, 1268 & 1269/Del/2010
2013 TaxPub(DT) 0870 (Del-Trib)

INCOME TAX ACT, 1961

--Income from undisclosed sources--Addition under section 69 Suppression of sales--

Income Tax Act, 1961, Section 69

INCOME TAX ACT, 1961

--Depreciation--Actual cost Amendment in section 43A with effect from 1-4-2003--

Income Tax Act, 1961, Section 43A

INCOME TAX ACT, 1961

--MAT--Book profit under section 115JA/JB Business loss or unabsorbed depreciation being nil--

Income Tax Act, 1961, Section 115JA/JB

In The ITAT, Delhi 'B' Bench

R.P. Tolani, J.M. & Shamim Yahya, A.M.

Filatex India Ltd., v. DCIT

I.T.A. Nos. 798, 799, 800, 801 & 802/Del/2010, I.T.A. Nos. 963, 1267, 1268 & 1269/Del/2010'

A.Y.s. : 2001-02, 2002-03, 2003-04, 2004-05 & 2005-06

15 February 2013

Assessee by : Ashwani Kumar, CA

Department by : Sudha Kumari, C.I.T. (D.R.)

ORDER

These appeals by the assessee and revenue emanate out of orders of the learned Commissioner (Appeals) for the concerned assessment years. Since the issues are connected and the appeals were heard together. These are being consolidated for the sake of convenience by this common order.

2. One common issue raised in the assessee appeal from assessment years 2001-02 to 2005-06 pertains to addition as income from undisclosed sources representing suppression of sales on account of under valuation of sales of waste.

2.1 In this case the search and seizure activities were carried out at the office of the assessee company. During the course of search proceedings, it came up that a search by Excise Department has been carried out at the factory premises of the assessee company. During the course of search, it was found that the assessee has sold out the waste of @%₹5.5 per kg. whereas the actual sales price was Rs. 20 per kg. Statement of Shri Sanjay Agrawal, GM (Marketing) was recorded during this search wherein he admitted that the waste yarn was being shown to be sold @ Rs. 5.50 per kg. where as reality it was sold for ₹20 per kg. A show cause notice was issued by the Joint Director, DGCEI, Regional Unit, Pune wherein the differential value of sales was worked out at Rs. 91,81,006 to financial year 2000-01 to 2004-05 as below :