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2015 (7) TMI 1017 - ITAT AHMEDABAD

2015 (7) TMI 1017 - ITAT AHMEDABAD - TMI - Addition on difference in the opening and closing stock of work-in-progress - Held that:- As decided in assessee's own case for AY 2007-08 [2015 (7) TMI 717 - ITAT AHMEDABAD] it is well settled that the closing stock of earlier becomes the opening stock of succeeding year. In this view of matter and examining all aspects, it would be in the interest of justice if the assessing officer is directed to allow the closing stock of last year as the opening st .....

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aintenance expenses claimed during the year. Mere furnishing of the copy of the ledger account would not prove that the expenditure has been incurred wholly and exclusively for the purpose of the business. It is observed by the AO that no other supporting evidence has been produced for verification. It is transpired from the records that the assessee has not filed any supporting evidence in the form of bills or vouchers either before the AO or before the ld.CIT(A) and even before this Tribunal a .....

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appeals by the Assessee are directed against the separate orders of the Ld.Commissioner of Income Tax(Appeals)-I, Surat ( CIT(A) in short) dated 30/09/2011 and 20/03/2012 pertaining to Assessment Years (AYs) 2008-09 and 2009-10. Since identical grounds have been raised in both these appeals by the assessee, therefore these appeals were heard together and are being disposed of by this consolidated order for the sake of convenience. 2. First, we take up the Assessee s appeal in ITA No.3157/Ahd/20 .....

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d that the Ld.A.O. has erred in law and in facts in disallowing on ad-hoc basis 10% of the expenditure on repairs and maintenance of plant and machinery which amounted to ₹ 2,83,028 and hence Your Appellant most humbly Prays that the impugned addition be deleted. 3. Such other relief(s) to which the appellant may be lawfully entitled to. 2. Briefly stated facts are that the case of the assessee was picked up for scrutiny assessment and the assessment u/s.143(3) of the Income Tax Act,1961 ( .....

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after considering the submissions of the assessee, dismissed the appeal. Aggrieved by the order of the ld.CIT(A), now the assessee is further in appeal before us. 3. Ground No.1 of assessee s appeal is against confirming the addition of ₹ 5,98,461/- made on account of difference in the opening and closing stock of work-in-progress. The ld.counsel for the assessee submitted that an identical ground was raised before the Tribunal (ITAT D Bench Ahmedabad) in assessee s own case in ITA No.976/ .....

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he material available on record and gone through the orders of the authorities below. We find that the Coordinate Bench of this Tribunal in assessee s own case bearing ITA No.976/Ahd/2010 for AY 2007-08 was pleased to decide the issue of difference in the opening and closing stock of workin- progress in para-7 of its order dated 31/08/2012, by observing as under:- 7. We have heard the rival submissions and perused the material available on records. It is not disputed by Revenue that in AY 2005-0 .....

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he opening stock or current year. This ground of appeal is allowed for statistical purposes. 4.1. No material has been placed before us by the respective parties suggesting that there is a change into the facts and circumstances of the case in the year under appeal. Therefore, taking a consistent view, we hereby direct the AO to allow closing stock of preceding year as opening stock of current year. With this direction, this ground of assessee s appeal is allowed for statistical purposes. 5. Gro .....

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rival submissions, perused the material available on record and gone through the orders of the authorities below. We find that the AO in his assessment order in para-5 has observed that in the instant case, the assessee has simply furnished copy of ledger account of the plant & machinery repairs and maintenance expenses claimed during the year. Mere furnishing of the copy of the ledger account would not prove that the expenditure has been incurred wholly and exclusively for the purpose of th .....

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on this issue. Thus, this ground of assessee s appeal is dismissed. 7. Ground No.3 is general in nature which requires no independent adjudication. As a result, assessee s appeal in ITA No.3157/Ahd/2011 for AY 2008-09 is partly allowed for statistical purposes. 8. Now, we take up the Assessee s appeal in ITA No.916/Ahd/2012 for AY 2009-10. The assessee has raised the following grounds of appeal:- 1. In view of the facts and circumstances of the case, the Ld.CIT(A) ought to have held that the Ld. .....

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