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TMI Blog2016 (6) TMI 897X X X X Extracts X X X X X X X X Extracts X X X X ..... 4/Ahd/1992 for the Assessment Year 1977-1978. 2. On 20.03.2002, the following questions were framed for consideration by this Court in both the Appeals :- "Has the Tribunal erred in law and on the facts of the case in applying para-21 of the Account Standard-2 of the Institute of Chartered Accounts of India in valuation of the inventories of the damaged goods and in holding that the entire loss or difference in valuation will not be allowable in the year under consideration?" 3. Learned Counsel for the appellant Mr. Bhargav Hasurkar contended that the ITAT has erred in rejecting the plea of the appellant that the closing stock is to be valued according to its market price. It is further contended that the ITAT failed to appreciate that b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and other costs incurred in bringing the inventories to their present location and condition." 7. It is, thus, submitted that the cost incurred in bringing the inventories to their present location and condition is to be included in the cost of inventories and that would clearly imply that the cost of travelling has to be added. The learned counsel for the assessee on the other hand referred to paragraph 13 of AS-@ and submitted that it is only direct cost of travelling which is to be included while computing the cost of inventories and indirect cost is not to be added. Paragraph 13 reads as under : "13. Exclusions from the cost of inventories. - In determining, the cost of inventories in accordance with paragraph 6, it is appropriate to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cost. Thus, while we do not find any error in the order of the Tribunal and are of the opinion that the indirect travel cost is not to be included in the cost of inventory as per AS-2, we direct the Assessing Officer to give the benefit of the judgment of the Tribunal to the assessee after verifying the same. The appeal is accordingly dismissed, subject to the aforesaid direction." 4. Learned Counsel for the respondent has taken us to the evidence and contended that the appellant - Company had gone into liquidation and therefore, the Tribunal has not committed any error in arriving at the conclusion as stated above. 5. We have heard learned Counsels appearing for the respective parties and perused the records of the case. Considering t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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