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2013 (4) TMI 141 - KERALA HIGH COURTInclusion of Closing stock in the hands of subsidiary company and / or holding company - held that:- closing stock of the subsidiary company is shown as opening stock of the holding company, which is a strange principle of accounting by both the companies. We felt that the value of the stock should be considered for assessment only at the hands of one company. When the appeal of the holding company was heard, learned Senior counsel appearing for the assessee after taking instructions from the subsidiary company submitted that in the Income Tax Appeal that was pending against the assessment of closing stock of the subsidiary company, they will not press that ground thereby accepting the closing stock of that company to be treated as opening stock for assessment. In spite of the above judgment delivered based on undertaking given by the assessee in this Court the assessee did not inform the Tribunal about the above judgment and the matter was argued on merit, which led to impugned orders issued by the Tribunal. The consequence of this conduct of the assessee is that the Department was disabled from contesting the Tribunal's order at the hands of the holding company and the Department's appeal was dismissed. Matter remanded back to tribunal.
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