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2019 (5) TMI 103 - AT - Income TaxAddition account of reduced value of stock - old stock of so many years - HELD THAT:- It is not in dispute that assessee-company has been following the method of valuation of closing stock at cost or market value, whichever is less. The assessee did not make any purchases in the year and considering the nature of item used in the business, it is clear that the items day to-day reduce in their value. Thus, the assessee was justified in selling the goods at a lower value year after year. When similar method of accounting have been employed by assessee in earlier year and similar addition have been deleted by the Tribunal in assessment year 2005-2006 [2010 (8) TMI 1125 - ITAT DELHI] , there was nothing wrong in the findings of the CIT(A) to have deleted similar addition. In the absence of any material on record in favour of the Revenue, no interference is called for in the matter. Revenue in the ground of appeal also stated that in assessment year 2005-2006, Revenue has not filed any appeal before the jurisdictional High Court because of the CBDT Circular. Stands proved that finding of fact in the impugned year have reached finality. In the absence of any contrary material on record, no interference is called for. The Departmental Appeal, therefore, stands dismissed. Addition being remission of liability - capital in nature - wavier of loan - HELD THAT:- Hon’ble Supreme Court in the case of Mahindra and Mahindra Ltd. [2018 (5) TMI 358 - SUPREME COURT] also held that “Section 41(1) of the Income Tax Act does not apply since waiver of loan does not amount to cessation of trading liability. It is a matter on record that the respondent has not claimed any deduction under section 36(1)(iii) of the Income Tax Act qua the payment of interest in any previous year”. In the present case, the authorities below have not given any finding of fact whether the whole amount of loan had been utilised either for the purpose of acquiring a capital asset or for the purpose of business activity or trading activity. There is also no finding of fact whether assessee had claimed any deduction in respect of interest on loan in earlier years - restore the matter to re-decide the issue strictly in accordance with Law - Appeal of assessee is allowed for statistical purposes
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