TMI Blog2013 (10) TMI 524X X X X Extracts X X X X X X X X Extracts X X X X ..... - Decided in favour of assessee. Valuation of closing stock - Under valuation of closing stock - Held that:- there is no material on record to indicate the method of valuation of closing stock by the assessee. Since the assessee sold power units at the average rate of Rs.3.17 per unit, we are of the considered opinion that the same rate can be applied for valuing the closing stock on market value basis. The learned AR did not raise any objection to the sustenance of addition but requested that the same value of closing stock for this year should be directed to be adopted as a value of opening stock for the subsequent year. There can be no doubt on the proposition that the value of closing stock for one year has to be taken as the value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. DCIT [(2010) 328 ITR 81 (Bom)] has held that the provisions of Rule 8D cannot be applied to any assessment year prior to 2008-2009. Since the assessment year under consideration is prior to assessment year 2008-2009, as such Rule 8D cannot be invoked for the purposes of computing disallowance u/s 14A. We, therefore, vacate the orders of the lower authorities in this regard. The matter is accordingly sent back to the AO for working out the disallowance under this provision on some 'reasonable basis as has been held by the Hon ble High Court in Godrej Boyce Ltd. Mfg. Co. (supra). 4. Ground no.2 is against confirmation of addition of Rs.20,29,706 on account of under-valuation of closing stock of power units. Briefly stated the facts o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the subsequent year. There can be no doubt on the proposition that the value of closing stock for one year has to be taken as the value of opening stock for the subsequent year. The assessee in this case valued stock at the rate of Rs.2.32 per unit by considering the purchase price of MSEDCL, whereas we have held that such closing stock should be valued at average sale price of Rs.3.17 per unit. It is quite natural that if the closing stock for the current year is held to be liable for valuation at Rs.3.17 per unit, then the opening stock for the next year should also be valued accordingly. Be that as it may, this ground is dismissed. 6. Ground no.3 is against the confirmation of disallowance of Rs.3.21 lakh being fees charged by Kotak ..... X X X X Extracts X X X X X X X X Extracts X X X X
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