TaxTMI 
TaxTMI 
2012 (2) TMI 303
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....the AO on account of undervaluation of stock. 2. That while deleting addition of Rs.7,53,949/- out of total deleted addition as above, ld. CIT(A) has not given any categorical finding that LIFO was being consistently followed by the assessee in earlier years. 3. That while deleting the addition as above, ld. CIT(A) has not discussed as to how the valuation was done by the assessee at cost price and how the stock was correctly valued by the assessee. 4. That the ld. CIT(A)- II has erred in law and on facts in deleting the addition of Rs.43,600/- made by the AO by making disallowance under Section 36(1) ( iii) of the Income- tax Act,1961. 5. That the order of the CIT(A)- II be set aside and that of the AO be restored. 6. That the appella....
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....Table 1 Rs.8,17,050.00 Amount as per Table 2 Rs.7,53,949.00 Amount as per Table 3 Rs. 35,816.00 Total Rs.16,06,815.00 5. The CIT(A) , on appreciation of the legal and factual position explained before him recorded his findings in para 9 of his order, which is reproduced hereunder : "9. I have gone through the submissions of both the parties and also the assessment order and it is a fact that stock of 1900 pieces of HUB PH/Type 40H have been disclosed in the list of the closing stock as on 31.3.2007. Therefore, the assessee is entitled to the relief of Rs.36100/- (1900 pieces x Rs.19/- ) . As regards, the sales of 40000 pieces of HUB PH/Type 40H, through, such sales have been reflected in the stock register, but the counsel of asses....
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....er the assessment order, the AO tabulated a chart at page 2 of the order wherein he adopted the rates taken in different items as mentioned in the closing stock as on 31.3.2007. Thus, AO was of the opinion that assessee resorted to under-valuation of closing stock by Rs.7,53,949/-. The ld. CIT(A) afforded reasonable opportunity to the assessee who was present in the course of appellate proceedings and deleted the impugned addition as per para 12 of his order. The contents of the said para are reproduced hereunder : "I have gone through the argument of both sides, I have also perused a chart filed before me and I am in agreement with the submissions of the counsel of the assessee, that the assessee had been following consistent method of ac....
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.... made without any business expediency and hence, he disallowed interest of Rs.43,600/-. Ld. CIT(A), by placing rel iance on the decision of the Hon'ble Supreme Court in the case of S.A.Bui lders 285 ITR 1 (S.C) held that the advances were made for commercial use, hence impugned disallowance was deleted. It was held by the ld. CIT(A) that these advances were business advances in order to procure more business and hence, there existed an element of commercial expediency. The findings of the CIT(A) cannot be held as suffering from any infirmity, hence the same are upheld. Ground No.4 of the Revenue is dismissed. 12. Ground Nos. 5 & 6 are general in nature and need no separate adjudication. Hence, the same are dismissed. 13. Resultantl....