TMI Blog2022 (12) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax proceedings, but at the same time rule of consistency cannot be ignored especially when the accounting method followed by assessee is in accordance with approved Accounting Standards. Revenue has not brought on record any material to show the reasons for deviation in not accepting provision for slow moving and obsolete inventories in the impugned assessment year. In the case of CIT vs. Santram Mangatram [ 2005 (1) TMI 57 - PUNJAB AND HARYANA HIGH COURT] has held that where from the inception of its business, the assessee had continuously adopted the same method of valuation of closing stock and no objection was raised by the Department in any of the previous years, there was no valid ground to hold that method adopted by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer has disallowed bad debts and advances written off to the extent of Rs.5,97,35,213/-. The aforesaid amount is mentioned in Schedule -17 against the Publicity Expenses . The Assessing Officer patently erred in mentioning the amount of Publicity Expenses against Bad Debts and advances written off . Disallowance has been made by the AO on wrong appreciation of facts. We further observe that the assessee s submissions dated 20/01/2014 made before the AO had categorically mentioned Nil against Details of Bad Debts and Advances written off during the year. After examining the facts and documents on record, we find merit in ground No.4 of the appeal. Hence, the assessee succeeds on same. AO is directed to delete the disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trade at par with cost or net realizable value, whichever is less. The assessee is consistently following this method of accounting since its inception. The same has been accepted by the Department in assessment made over the last twenty years. The method of accounting followed by the assessee is in conformity with Accounting Standard -2. Even in the subsequent assessment years the provision for slow moving and obsolete stocks made by the assessee was never disturbed in the assessment proceedings. The ld. Authorized Representative of the assessee submits that it is a well settled law that method of accounting consistently followed could not be rejected, unless it does not reflect true profit. In support of his submissions the ld. Authorized ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by Assessing Officer, the assessee carried the issue in appeal before CIT(A). Initially, the first appeal was fixed for hearing before the CIT(A) in physical mode. Subsequently, the appeal was transferred to National Faceless Appeal Centre, Delhi. No opportunity was afforded to the assessee for making submissions before the CIT(A), NFAC, hence, the CIT(A) without appreciating the facts on record and submissions made before CIT(A) in physical mode confirmed the additions. 4. Per contra, Ms. Richa Gulati representing the Department vehemently defended the impugned order and prayed for dismissing the appeal of assessee. 5. Both sides heard, orders of authorities below examined. 6. The first issue raised by the assessee in ground No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the previous years, there was no valid ground to hold that method adopted by the assessee for valuation of stock was legally impermissible. The Hon ble Apex Court in the case of United Commercial Bank vs. CIT (supra) has held that where the assessee bank was valuing stock-in-trade at cost for the purpose of statutory balance sheet and for the Income Tax purpose valuation was at cost or market value, whichever is lower and that was accepted by the Department in the preceding assessment years, there is no justifiable reason for the Revenue for not accepting same in the impugned assessment year. 7. In the aforesaid decisions Hon ble Apex Court and the Hon ble High Court has held that if the provision is accounted in accordance with the stat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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