TMI Blog2016 (3) TMI 1293X X X X Extracts X X X X X X X X Extracts X X X X ..... ese facts and circumstances of the case, we are of the view that there was no error in the order of the Assessing Officer passed under section 143(3) as alleged by the ld. CIT calling for revision under section 263. - Decided in favour of assessee - I.T.A. No. 1772/KOL/ 2014 - - - Dated:- 18-3-2016 - Shri P.M. Jagtap, Accountant Member and Shri S.S. Viswanethra Ravi , Judicial Member Shri P.K. Agarwala, FCA, for the assessee Shri Sachidananda Srivastava, CIT, D.R. , for the Department ORDER Shri P.M. Jagtap : - This appeal f i led by the assessee is directed against the order of the ld. Commissioner of Income Tax, Kolkata- IV, Kolkata dated 21.08.2014 passed under section 263 of the Income Tax Act, 1961. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 143(3) should not be revised by treating the same as erroneous as well as prejudicial to the interest of the revenue. In reply, the following explanation was offered by the assessee :- (i) The assessee company submitted that Tools Tackles are used day for construction and manufacturing operation carried out by the company. Tools and Tackles are neither part of raw material nor part of finished goods and as such is not part of closing stock. Therefore, section 145A is not at all applicable to Tools and Tackles. (ii) On a technical evaluation by Engineering Department of the company it was found that normally tools and tackles has useful life of about 5 years. Therefore, it was decided to proportionately write it off 20% every ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al submissions and also perused the relevant material available on record. It is observed that in the written submissions dated 09.03.2013 filed by the assessee with reference to the queries raised by the Assessing Officer in the course of assessment proceedings, the following explanation was offered by the assessee as regards the basis of valuation of Tools and Tackles: - Tools and Tackles (a) Closing Stock is shown on page 23 Schedule 4.1 (b) Consumption is shown on Page 29 Schedule 7.1 (c) On Page 31 Note 4.4 states - value of Tools and Tackles are determined using weightage average cost formula and 20% of the cost are writ ten off every year on account of wear and tear. (d) This practice is followed for a number of years ..... X X X X Extracts X X X X X X X X Extracts X X X X
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