{"id":234865,"date":"2011-05-02T00:00:00","date_gmt":"2011-05-01T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/standard-vs-unknown-on-2-may-2011"},"modified":"2016-07-12T09:11:58","modified_gmt":"2016-07-12T03:41:58","slug":"standard-vs-unknown-on-2-may-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/standard-vs-unknown-on-2-may-2011","title":{"rendered":"Standard vs Unknown on 2 May, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Standard vs Unknown on 2 May, 2011<\/div>\n<div class=\"doc_author\">Author: Akil Kureshi,&amp;Nbsp;Ms Gokani,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nTAXAP\/2498\/2009\t 3\/ 3\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\n \n\n\n \n\nTAX\nAPPEAL No. 2498 of 2009\n \n\n \n \n=========================================================\n\n \n\nSTANDARD\nTEA PROCESSING CO LTD (NOW MERGED WITH GUJARAT TEA - Appellant(s)\n \n\nVersus\n \n\nDEPUTY\nCOMMISSIONER OF INCOME TAX - Opponent(s)\n \n\n=========================================================\n \nAppearance\n: \nMR\nJP SHAH with Mr MANISH J SHAH\nfor\nAppellant \nNone for\nOpponent \n=========================================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t:\n\t\t\t\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE AKIL KURESHI\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\nand\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\n HONOURABLE\n\t\t\tMS JUSTICE SONIA GOKANI   2nd May 2011\n\t\t\n\t\n\n \n\n ORAL\nORDER<\/pre>\n<p> (Per<br \/>\n: HONOURABLE MR.JUSTICE AKIL KURESHI)<\/p>\n<p>Assessee is in appeal<br \/>\nagainst the Order of the Income Tax Appellate Tribunal, Ahmedabad<br \/>\nBench [hereinafter referred to as, &#8220;Tribunal&#8221;]<br \/>\ndated 22nd August 2009, raising following questions for<br \/>\nour consideration :-\n<\/p>\n<p>\t&#8220;Whether<br \/>\non the facts and in the circumstances of the case, \tthe Tribunal&#8217;s<br \/>\nfinding that the assessee had done \tunrecorded sale of 30% of<br \/>\n&#8216;khokhas&#8217; worth Rs. 5,36,127\/= \tand had earned undisclosed income of<br \/>\nRs. 5,36,127\/= is \tperverse and against evidence on record ?&#8221;\n<\/p>\n<p>\tThe<br \/>\nissue pertains to addition of a sum of Rs. 5,36,127\/=, confirmed by<br \/>\nthe CIT [A] and the Tribunal, towards the sale of wooden boxes by the<br \/>\nassessee during the period in question.\n<\/p>\n<p>\tApparently,<br \/>\nthere was a discrepancy in the number of boxes sold &#8211; according<br \/>\nto the assessee and those leaving the factory-gate. The Assessing<br \/>\nOfficer worked out  additions to be made on the basis of such<br \/>\ndiscrepancy at Rs. 1,30,85,342\/=. Assessee carried the issue in<br \/>\nappeal. The CIT [A] reduced the additions to only Rs. 5,36,127\/= and<br \/>\ndeleted the rest. Still not satisfied, the assessee went in appeal<br \/>\nbefore the Tribunal. The Tribunal confirmed the view of the CIT [A].<br \/>\nThe assessee is, therefore, before us in the present Tax Appeal.\n<\/p>\n<p>\tWe<br \/>\nhave heard learned counsel Mr. J.P Shah for the appellant and perused<br \/>\nthe orders on record with his assistance. He has taken us through the<br \/>\nsynopsis, extracts of sale of scrap and the relevant discussions made<br \/>\nin the orders.\n<\/p>\n<p>\tCounsel<br \/>\nsubmitted that the assessee  receives Tea in different wooden boxes.<br \/>\nMany of these boxes get damaged in transit.  Only those boxes which<br \/>\nwere re-used and not seriously damaged would fetch any re-sale price.<br \/>\nThe employees of the assessee-company would, in consultation with the<br \/>\ncontractor purchasing such wooden boxes, would estimate the<br \/>\npercentage of intact and damaged boxes and fix the price of only<br \/>\nthose boxes which were found re-useable. The accounts, therefore,<br \/>\nwould reveal only those boxes which were not seriously damaged and<br \/>\nwere thus sold. On the other hand, the security personnels employed<br \/>\nat the gate would keep strict vigil and record every box &#8211;<br \/>\ndamaged or otherwise, which left the factory premises.    He also<br \/>\ncontended that the Assessing Officer in his regular assessment did<br \/>\nnot find any reason to add such amount.\n<\/p>\n<p>\tThis<br \/>\nmatter was also explained by the assessee before the authorities as<br \/>\nwell as before this Court. We, however, find that this issue is<br \/>\npurely factual in nature. The CIT [A] had in its detailed order taken<br \/>\ninto account all the explanations rendered by the assessee and found<br \/>\nthat sales of 30% of the boxes were not recorded and only 70% boxes<br \/>\nwere recorded. He, therefore, estimated the sales on this account to<br \/>\nthe extent of Rs. 5,36,127\/=, however, deleted the balance; contrary<br \/>\nto the opinion of the Assessing Officer. The addition made by the CIT<br \/>\n[A] was confirmed by the Tribunal.\n<\/p>\n<p>\tWhen<br \/>\non this issue, the Assessing Officer, CIT [A] as well as the Tribunal<br \/>\nheld that only 70% sales of wooden boxes is recorded in the books and<br \/>\nthe balance is not recorded, we find that no substantial question of<br \/>\nlaw arises. Tax Appeal is, therefore, dismissed.\n<\/p>\n<p>{Akil<br \/>\nKureshi, J.}<\/p>\n<p>{Ms.\n<\/p>\n<p>Sonia Gokani, J.}<\/p>\n<p>Prakash*<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Standard vs Unknown on 2 May, 2011 Author: Akil Kureshi,&amp;Nbsp;Ms Gokani,&amp;Nbsp; Gujarat High Court Case Information System Print TAXAP\/2498\/2009 3\/ 3 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL No. 2498 of 2009 ========================================================= STANDARD TEA PROCESSING CO LTD (NOW MERGED WITH GUJARAT TEA &#8211; Appellant(s) Versus DEPUTY COMMISSIONER [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-234865","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Standard vs Unknown on 2 May, 2011 - Free Judgements of Supreme Court &amp; 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