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2018 (8) TMI 1490 - ITAT KOLKATAValuation of closing stock - assessee is a company engaged in the business of iron ore mining and export - consistency in following the same method of valuation of closing stock - Held that:- As relying on OSWAL WOOLLEN MILLS LTD. VERSUS INCOME TAX OFFICER [1986 (7) TMI 162 - ITAT CHANDIGARH] Assessee applied same principle for valuation of opening stock, which was applied for valuation of closing stock and further same method was being applied consistently even in all subsequent years - Assessing Officer had not given any logical basis for not accepting valuation of work-in-progress - if AO objected to valuation of closing stock, he should have also objected to opening stock on same basis, which was not done - thus the action of the AO of changing the method of valuation of closing stock without pointing out any reason for the rejection of valuation of closing stock which was accepted by the department in earlier assessment year, is not justified. The calculation mistake done by the AO has been corrected by the Ld.CIT(A). The assessee has been consistently following the same method of valuation of closing stock year after year. The AO has been accepting this method in the earlier years also. Hence even on the ground of consistency, the order of the AO on this issue had to be reversed. - Decided in favour of assessee. Disallowance of depreciation on amortized wagon cost - company purchased railway rakes under Wagons Investment Scheme (“WIS”) from Indian Railways - AO disallowed the depreciation on the ground that Indian Railways is the bonafide owner of the wagons and hence the assessee is not entitled to the claim depreciation - Held that:- We find that under the scheme, the assessee would be the owner of the wagon in question. Unless he is the owner of the wagon, the question of transfer of ownership from the assessee to the Railways does not arise. case of CIT vs Rajasthan Syntex Ltd [2008 (5) TMI 276 - RAJASTHAN HIGH COURT] not applicable - In the case on hand, under sub-clause 5.5 of the agreement of WIS, no lease rent whatsoever is to be paid. The assessee has claimed depreciation @ 15% u/s 32 of the Act. Ld.CIT(A) has rightly allowed the claim of the assessee. We uphold the same and dismiss this ground of appeal of the Revenue. - Decided in favour of assessee.
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