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2018 (1) TMI 1380 - ITAT BANGALOREValuation of stock - advertisement Expenditure, Legal & Professional fees and Site Administrative Expenditure to be capitalized to Inventory as per AS – 2 on Inventory read with section 145A - Held that:- As find that as per Para 13 of AS – 2, administrative overheads that do not contribute to bringing the inventories to their present location and condition and selling and distribution costs are to be excluded from the cost of inventories. As per the assessee, the amount in dispute of ₹ 15.65 Lacs & ₹ 14.80 lacs are hit by the clause (d) of Para 13 of AS – 2 and the remaining amount of ₹ 11,84,600/- is hit by the clause (c) of Para 13 of AS – 2. These contentions were raised before CIT (A) also and were noted by CIT (A) on page 5 of his order but while deciding the issue as per Para 9.3 of his order, learned CIT (A) has decided the issue without examining and deciding the applicability of clauses (c) and (d) of Para 13 of AS – 2. Hence, set aside the order of CIT (A) on this issue and restore the matter back to his file for a fresh decision. - Decided in favour of assessee for statistical purposes.
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