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2015 (3) TMI 234 - AT - Income TaxDisallowance of depreciation - Revaluation of stock - Method of calculation - Held that:- The assessee company having followed consistent policy of claiming of depreciation on loose tools every year below ₹ 10,000/- by charging to P&L account and the same is allowable as deduction. In the assessment year under consideration the assessee quantified the total loose tools at ₹ 3,30,09,993/-. Out of this, the tools which cannot be traceable or lost, which works out to ₹ 95,65,385/- and the same was charged to P&L account. Accordingly, the ld AR pleaded before us that this method has been following consistently and it is not claiming the deprecation rather revalued the stock at the end of each year and it has followed the same method of valuing the stock at market price or cost whichever is less as the loose tools are stock–in-trade. In our considered opinion the method followed by the assessee is correct considering the actual stock of loose tools as stock-in-trade, which is acceptable method in accordance with accounting Policies. Accordingly, we do not find any reason to interfere with the order of the CIT(A), which is confirmed. - Decided against Revenue.
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