TMI Blog2013 (1) TMI 454X X X X Extracts X X X X X X X X Extracts X X X X ..... luded from the facts of the case the debit had to be made to the P & L an extra-ordinary item arising out of the devaluation/depreciation of the inventory. Devaluation amount was reflected separately in the P & L only because of the presentation. Tribunal following its earlier order dated 7.11.2008 in the case of the assessee for the A.Ys 2000-01 and 2001-02 passed in ITA Nos.3952 and 2558. The revenue fairly submitted that no appeal had been filed against the aforesaid order of the Tribunal. no question of law much less substantial question of law - In favour of assessee - ITA No. 273 of 2011 - - - Dated:- 28-8-2012 - MR. AJAY KUMAR MITTAL AND MR. GURMEET SINGH SANDHAWALIA JJ. Present:- Mr. Inderpreet Singh, Advocate for the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory of work in progress and finished goods and addition was made by the Assessing Officer accordingly. The CIT(A) deleted the said addition. The Tribunal dismissed the appeal of the department. Further, the assessee added Rs.5,91,505/- to capital cost on account of exchange fluctuation loss and depreciation of Rs. 1,47,876/- was claimed on this account. The CIT(A) deleted the disallowance made on this account. The Tribunal dismissed the appeal of the department. The assessee also debited loss at Rs. 2,61,469/- due to exchange fluctuation in respect of debtors and creditors and therefore, addition of this amount was made. The CIT(A) deleted the addition and the Tribunal dismissed the appeal of the department relying upon decision of the Ape ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its accounting policy to value inventories of finished goods WIP at cost or net realisable value whichever is lower. Reference has been made to Schedule 17 of Annual Accounts for the year ending 31.3.2003 in this regard. This accounting policy is also in consonance with the Accounting standard 2 on valuation of inventories issued by the Institute of Chartered Accountants of India. The AO has not understood the accounting carried out by the company. He has stated that 'once the inventory valuation has been completed as per manufacturing/trading account nothing requires to be allowed as a deduction to Profit and Loss Account either on account of provision for devaluation of stock or permanent impairment of asset or on account of write off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the manner of presentation required as per Accounting Standards. It has been reiterated that Rs.28,45,951/- is a valid charge to the trading account and correctly claimed as per law as a deduction. It has further been submitted that the impugned loss claimed was ascertained loss as there has been permanent impairment of asset i.e. inventories as explained above and accordingly is fully allowable as business loss under Section 37(1) of the Income Tax Act, 1961. 5. The aforesaid order was affirmed by the Tribunal following its earlier order dated 7.11.2008 in the case of the assessee for the assessment years 2000-01 and 2001-02 passed in ITA Nos.3952 and 2558. Learned counsel for the revenue fairly submitted that no appeal had be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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