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TMI Blog2011 (1) TMI 1338X X X X Extracts X X X X X X X X Extracts X X X X ..... eleting the disallowance of 28,45,951/- made on account of provision made towards ageing of inventory of work in progress and finished goods and without having realized the actual sale of goods. 3. The Assessing Officer in this regard noted that assessee company has debited an amount of ₹ 28,45,951/- on account of provision made towards ageing of inventory of work in progress and finished goods. The Assessing Officer was not agreeable to this. He inter-alia held that similar addition has been made in the case of the assessee himself in the preceding year 2001-02 which has been confirmed by the Ld. Commissioner of Income Tax (Appeals). 4. Upon assessee's appeal Ld. Commissioner of Income Tax (Appeals) deleted the addition holding tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer noted that assessee was asked to furnish the details of amount capitalized on account of foreign exchange fluctuation and was also asked to furnish the details of depreciation claimed during the year under consideration. Perusal of the detail reveals that during the year under consideration the assessee company has added ` 591505/- to capital cost on account of exchange fluctuation loss and a depreciation of ` 147876/- has been claimed on this account. The Assessing Officer though noted that ITAT had decided the issue in favour of the assessee in earlier years. However, since the appeals u/s 260A before the Hon'ble High Court had already filed by the department. The issue was sub-judice and he proceed to hold that this liability is o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on mercantile system and it should not be disallowed. Assessing Officer did not accept the submissions. He claimed that assessee has not made actual payment of the liability during the year. Hence, the loss is on notional basis. Hence, he made the addition of ₹ 261469/-. 13. Upon assessee's appeal Ld. Commissioner of Income Tax (Appeals) considered the several cases on this issue. He directed the Assessing Officer to examine whether the loss is on capital account or revenue account, and if it was on revenue account to allow the same. 14. Against this order Revenue is in appeal before us. 15. We have heard both the counsel and perused the records. Ld. counsel of the assessee submitted that the issue now stands covered in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19. Against this order by way of Cross Objection the assessee has objected that assessee has claimed that in assessment year 2002-03 this matter was decided by the tribunal in favour of the assessee and assessee's in own case in Cross Objection No. 171/Del/2008 (In ITA No. 2125/Del/2008) for A.Y. 2002-03 vide paragraph nos. 3 & 4 as under:- "3. In the cross objection, the first grievance of the assessee relates to disallowance of ₹ 99,770/-. This disallowance has been made on the ground that personal element of user of vehicles are involved. The assessee contended that in earlier years, this disallowance has been deleted by the ITAT in the assesse's own case. He placed on record copy of the ITAT's order passed in assessment year 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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