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2014 (8) TMI 842 - AT - Income TaxBond issue expenses incurred for raising capital – Held that:- The matter has been decided by the High Court in assessee’s own case for the earlier assessment year in the judgment of Commissioner of Income Tax-4 Versus M/s. Hindustan Organics Chemicals Ltd. [2014 (7) TMI 477 - BOMBAY HIGH COURT] – Tribunal has rightly came to the finding that the expenditure was a revenue expenditure and allowable u/s 37(i) of the Act - the finding of the Tribunal cannot be in any way said to be vitiated on the ground of perversity or any error apparent on the face of the record – Decided against Revenue. Closing stock of raw materials on ad-hoc basis @ 2% made u/s 145A – Held that:- As decided in assessee’s own case for the earlier assessment year, it has been held that no details of the direct expenses were furnished, the AO estimated the direct expenses at 2% of the total value of closing stock of raw materials and stores, which resulted in to the addition to the closing stock in accordance with the provisions of section 145A of the Act - CIT(A) gave a finding that the assessee has been valuing its closing stock of raw material inclusive of freight charges as reflected from the purchase day book and general ledger of item and there is no change in the valuation of the stock - CIT(A) held that the closing stock of previous year would be the opening is stock of the year and therefore estimation of the stock is not justified – Decided against Revenue.
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