TMI Blog2022 (2) TMI 1152X X X X Extracts X X X X X X X X Extracts X X X X ..... anding counsel. Thus, if the report of the survey team is eschewed, then it has to be seen as to in what manner the assessing officer could have completed the assessment. The crux of the issue revolves around the valuation of the closing stock. The revenue faults the assessee for not adopting the FIFO method. The tribunal has considered the correctness of the submission and pointed out that the assessee has consistently adopted the LIFO method which has been accepted by the assessing officer in all the previous years and in the assessee s own case in the respect of the assessment year 2009-10, the matter travelled upto the tribunal and the method of valuation of closing stock adopting LIFO method was approved. Therefore, the tribunal conclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue. - ITAT/193/2019 IA No.GA/2/2019 (Old No.GA/2965/2019) - - - Dated:- 21-2-2022 - THE HON BLE JUSTICE T.S. SIVAGNANAM AND THE HON BLE JUSTICE HIRANMAY BHATTACHARYYA Ms. Sucharita Biswas, Adv. Mr. Soumen Bhattacharyya, Adv. ...for the appellant Mr. J. P. Khaitan, Sr. Adv. Ms. Swapna Das, Adv. Mr. Siddhartha Das, Adv. ...for the respondents ORDER The Court : This appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 (the Act in brevity) is directed against the order dated 27th July, 2018 passed by the Income Tax Appellate Tribunal, B Bench, Kolkata (in short the Tribunal ) in ITA No.2127/Kol/2016 for the assessment year 2011- 12. The revenue has raised the following substantial que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Bhattacharyya, learned Advocate for the appellant/revenue and Mr. J. P. Khaitan, leaned senior Counsel assisted by Ms. Swapna Das and Mr. Siddhartha Das, learned Advocates for the respondent/assessee. As could be seen from the assessment order dated 19th March, 2014 under Section 143(3) of the Act, the entire matter commenced pursuant to a survey action conducted under Section 133A of the Act in the business premises of the assessee. The assessing officer, after taking note of the report submitted by the survey official, proceeded to issue show cause notice to the assessee and considered the matter. In the assessment order, the survey report has been extensively extracted and the crux of the same is an alleged admission by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LIFO method which was adopted by the assessee. The learned counsel for the appellant has extensively taken us through the assessment order and seeks to demonstrate before us that there is no error in the manner in which the assessment was completed. The learned senior counsel for the respondent has placed reliance on the decision in the case of Commissioner of Income Tax vs. S. Khader Khan Son reported in [2008] 300 ITR 157 (Mad) wherein the court took into consideration a circular issued by the Central Board of Direct Taxes (CBDT) dated March 10, 2003 with regard to the confession of additional income during the course of search and seizure and survey operation. It is submitted that in the said circular the Board has categorically spel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The above directive issued by the CBDT is a straight answer to the contention advanced by the learned standing counsel. Thus, if the report of the survey team is eschewed, then it has to be seen as to in what manner the assessing officer could have completed the assessment. The crux of the issue revolves around the valuation of the closing stock. The revenue faults the assessee for not adopting the FIFO method. The tribunal has considered the correctness of the submission and pointed out that the assessee has consistently adopted the LIFO method which has been accepted by the assessing officer in all the previous years and in the assessee s own case in the respect of the assessment year 2009-10, the matter travelled upto the tribunal an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessee, the assessing officer may make an assessment in the manner provided in Section 144. Section 145A of the Act, as it stood at the relevant time (A.Y. 2011-12) commences with a nonobstante clause stating that notwithstanding anything to the contrary contained in Section 145, the method of accounting in various types of cases have been spelt out. It is an admitted case that the assessee has been continuously adopting the LIFO method which has been accepted by the revenue for all the earlier assessment years and in respect of the assessment year 2009-10, the matter travelled upto the tribunal and the manner of valuation of the closing stock done adopting LIFO method was approved. Therefore, in our considered view, the tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
