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TMI Blog2015 (11) TMI 1309X X X X Extracts X X X X X X X X Extracts X X X X ..... questions of law:- "i) Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT was justified in deleting addition of Rs. 36,41,702/- on account of closing work in progress without appreciating the findings of AO and ignoring the decisions of Hon'ble Supreme Court in the cases of CIT vs. A.Krishnaswami Mudaliar (1964) 53 ITR 122 (SC) and CIT vs. British Paints India Limited (1990) 91 CTR (SC) 108 :(1991) 188 ITR 44 (SC)? ii) Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT was justified in deleting addition of Rs. 38,000/- on account of disallowance of interest on interest free loans ignoring the decisions of Hon'ble P&H High Court in the cases of CIT vs. Varinder Agr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- added on account of fuel consumption on pro rata basis to the closing WIP. The Assessing Officer also made addition of Rs. 78,000/- on account of disallowance of interest on interest free loans. Aggrieved by the order, the assessee filed appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. Vide order dated 21.12.2010, Annexure 2, the CIT(A) partly allowed the appeal confirming the following additions:- i) Closing work in progress Rs. 36,41,702/- ii)Disallowance of interest on interest free loans Rs. 38,000/-. The assessee filed second appeal before the Tribunal. Vide order dated 27.12.2012, Annexure 3, the Tribunal partly allowed the appeal giving relief to the assessee on the fact that the method of accounting had been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same method of accounting consistently for many years as pointed out at PB-12. This fact has not been rebutted by the revenue. Therefore, it is undisputed fact that when method of accounting has been followed consistently and in the absence of any justification by the lower authorities in their orders, a different methodology cannot be adopted departing from the past practice as a matter of principle of consistency. Therefore, the AO as well as the learned CIT(A) are not justified in adopting different methodology as in the present case. The reliance was placed on the decisions of various courts of law upon by the learned AR for the assessee Shri Sandeep Vijh mentioned hereinabove. 8.1 Moreover, if at all, the method of accounting is cha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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