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TMI Blog2012 (2) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... und raised by the assessee are argumentative in nature, however, the substantive ground is ground No.1; reproduced below:- "1. That the learned CIT(A) has erred both in law and on the facts of the case in confirming the alleged under valuation of closing stock amounting to Rs.22,02,315/-. 2.1. Facts in brief as emerged from the corresponding asst.order passed u/s.143(3) of the Act dated 20/12/2007 were that the assessee-company is in the business of manufacturing of Ceramic Floor Tiles. It was found by the AO that the closing stock of finished goods was declared at Rs.2,75,28,940/-. The closing stock was valued by including the amount of excise duty. The closing stock of raw-material and work-in-progress was also valued by including the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n view of this the addition made by the A.O. amounting to Rs.22,02,315/- in the income of the appellant is hereby confirmed. The alternative contention of the Ld.A.R. regarding corresponding change in opening stock should be made, has also been considered. This is being consequential in nature and not being in respect of this assessment year, does not require any separate adjudication. However, the appellant is open to apply before the A.O. to get rectification of the order for subsequent year by substitution of the closing stock of this assessment year as opening stock accordingly. In this regard reliance is placed on the decision of Hon'ble ITAT, Mumbai 'C' Bench in the case of Crodydon Chemical Works Ltd. Vs. ACIT 11 SOT 295." 4. From t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e liability arises only at the time of removal of goods form the factory. Considering the totality of the facts and circumstances of the case and the law discussed in above, we hereby reverse the finding of the ld.CIT(A) and allow this ground. Assessee's appeal is allowed. [B] ITA No.2365/Ahd/2009 for A.Y. 2005-06 (Revenue's Appeal) 6. The substantive ground reads as under:- 1. The learned CIT(A) has erred in law and on facts in deleting the disallowance of Rs.15,75,900/- made u/s.40(a)(ia) of the Act. 6.1 The appellant had made payment to GAIL Ltd. towards transportation charges. The objection of the AO was that the payment was made without observing the provisions of section 194C of the I.T. Act, since tax was not deducted. By invokin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bok India Co. 100 TTJ 976 (Del) is applicable to the facts of the case of the appellant." "6.9 Therefore, keeping in view the principle as laid down by the Hon'ble Supreme Court as referred to above, it is held that the contract between the GAIL and the appellant is a contract of sale of gas and the transmission charges which are levied by the GAIL are only ancillary and incidental on such sale as the gas cannot be sent to the buyer without transporting the same. In these circumstances, the contract between the GAIL and the appellant cannot be termed as work contract as envisaged u/s.194C of the Act. In view of this the appellant cannot be held liable for the violation of the provisions of that section and provisions of sec.40a(ia) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as cited supra), the ground of the Revenue deserves to be dismissed. Since a view has already been expressed while deciding the appeal of the Revenue, this CO has become redundant, therefore dismissed. [D] ITA No.839/Ahd/2010 for A.Y. 2006-07 (Assessee's appeal) 10. The substantive Ground No.1 reads as under:- 1. That the learned CIT(A) has erred both in law and on the facts of the case in confirming the alleged under-valuation of Closing Stock amounting to Rs.18,02,931/-. 10.1. On identical facts, the AO had invoked the provisions of section of section 145A of the I.T. Act. A view has already been expressed hereinabove, therefore for this year as well this ground of the assessee is allowed. [E] ITA No.956/Ahd/2010 for A.Y. 2006-07 (Re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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