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2016 (7) TMI 276 - AT - Income TaxAddition on account of difference in valuation of securities - change in valuation method of stock - Held that:- In the present case, the Revenue has not pointed out any infirmity in the method adopted by the assessee for valuation of stock. The appeal pertains to the assessment year 2010-11, the ld. AR has stated at the Bar that the assessee is following the changed method of valuation of stock even today. The ld. DR has not controverted the statement made by the ld. AR. Since, the method of valuation of stock has been regularly adopted by the assessee this shows the bonafide of assessee in changing the valuation method. Reduction in profit due to change in valuation method of stock cannot be a reason to reject the claim of assessee. Whenever, there is change in method of accounting, there would be aberrations in the financial results. We do not find infirmity in the well reasoned and detailed findings given by the Commissioner of Income Tax (Appeals). It is not the case of the Revenue that the method of valuation of stock adopted by assessee is inconsistent with the accounting principles. - Decided in favour of assessee Disallowance of claim of bonus - Held that:- As per final accounts, bonus a/c and Profit and Loss a/c, find there was a liability of Bonus payable only which was paid by appellant before the due date for furnishing the return of income on the previous year. The Auditors have given the necessary comments in this regard in the Audit Report. Under the circumstances and on the facts, AO is not justified in disallowing the bonus paid before the due date of filing the return and hence, addition cannot be sustained. - Decided in favour of assessee
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