Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 119 - HC - Income TaxDeduction under Section 80M allowed on gross amount of dividend received allowed - Held that:- In respect of the first substantial question of law, it is held that the decision of the Tribunal in allowing the deduction under Section 80M is contrary to Distributors (Baroda) P. Ltd.’s case ( 1985 (7) TMI 1 - SUPREME Court). Thus, the order of the Tribunal is set aside and that of the Assessing Officer is restored. - Decided in favour of revenue. Addition made on account of Closing Stock of stores, spare parts and tools etc - Held that:- At best, even if the addition is to be made, it could be on the basis of closing stock of the previous year i.e. 1988-89. Such argument seems to be attractive, but cannot be accepted at this stage. It has come on record from the assessment year 1983-84 till the assessment year 1988-89, the assessee made to believe that stocks purchased by him stands consumed by the end of the year. Such accounting method even in respect of petty items cannot be said to be an accepted accounting procedure, the notice of such method could be taken by the Assessing Officer while making assessment. We find that the finding of the Commissioner of Income Tax (Appeals) as well as of the Tribunal is not based upon sound reasoning. The reason given is on the basis of the finality of the assessment proceedings in the previous years. The opening and the closing stocks have to be certain and cannot be left to the rule of thumb, as adopted by the assessee in the present case.Thus, the findings of the Tribunal and of the Commissioner of Income Tax (Appeals) in respect of setting aside the addition relating to the closing stock are set aside and that of the Assessing Officer are restored. - Decided in favour of revenue.
|