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2012 (12) TMI 329 - AT - Income TaxDenial of claim of 50% discount in respect of valuation of stock - stock was obsolete and got out of fashion and as such it was put up for sale at 50% discount - Held that:- This would not be possible as valuing part of the stock at market price and other part of the stock at “cost price” is not permissible in law. - in accordance with method of valuation of stock adopted by the assessee i.e. lower of “ cost or market value”, no further deduction for discount sale could be allowed to the assessee - against assessee. Rejection of claim of the stock - bills for which were not credited in the books of accounts, pending for accounting - Held that:- As the assessee has produced bills amounting to Rs.2,42,501/- and has claimed in its return of income before the department merely because there was delay in making the claim and the claim was not made at the time of survey itself or at the time of making statement of the partner of the assessee-firm, it could not be said that the facts should not have been verified by the AO and credit of the bills claimed to be available at the business premises of the assessee at the time of survey was not allowable. There is no material before us to suggest that any exercise to verify the genuineness of the bills was made by the AO at any stage of the assessment and no reason for not doing so could be assigned - in favour of assessee. Deletion of addition by CIT(A) - Revenue appeal - Held that:- As admissibility of appeal filed by the Revenue in the light of various instructions issued by CBDT from time to time wherein monetary limits for filing departmental appeals (Income-tax matters) and other conditions were specified, restricting filing appeals before Appellate Tribunal. As tax effect in this case is less than Rs.2 lakhs therefore the present appeal of the department is not maintainable - in favour of assessee.
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