Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 602 - AT - Income TaxRevision u/s 263 - cost of stores debited to profit and loss account - HELD THAT:- We find the assessee has filed the information incompliance to the notice issued and clarifications are filed over a period of time in the assessment proceedings on the cost of stores debited to the profit and loss account. AR has demonstrated the documents filed in the factual paper book discussed. Accordingly the assessee has diligently complied with the provisions of Act, and maintained the facts /details in the books of accounts and fallowed the Accounting standard -2 in valuation of inventories. Therefore we are of the opinion that the directions of the Pr.CIT order in respect of claim of stores in the profit and loss account cannot be sustained and allow the grounds of appeal pertaining to the disputed issue on claim of stores. Set off of brought forward business loss against the short term capital gains - The contentions of the Ld.AR are that the Building and plant & machinery were sold as block of assets and short term capital gains worked out over and above the WDV. The assessee has carried forward business loss of A.Y.2007-08 and claimed set off with the short term capital gains and relied on the judicial decision on merits. The Ld.DR submissions are that the PCIT has dealt on the facts which proves that the A.O. has not applied his mind and not made enquiries on the issues. We find the assessee has submitted the assessment order pertaining to A.Y 2007-08 before the A.O on 17.04.2017. We find the A.O has called for the information, but there is no examination and verification of the facts or findings by the A.O on the set off of short term capital gains with carry forward loss. Accordingly, the matter needs to be verified and reasons for claim should be justified. We do not find infirmity in the order of the Pr.CIT on the directions to A.O. for verification of set off of loss and up hold the same and dismiss this ground of appeal of the assessee and partly allow the assessee appeal.
|