TMI Blog2018 (6) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... e record of the AO for fresh adjudication as relying of assessee's own case [2011 (6) TMI 954 - ITAT JAIPUR]- Assessee appeal allowed for statistical purpose. - ITA No. 994/JP/2017 - - - Dated:- 28-5-2018 - SHRI VIJAY PAL RAO, JM AND SHRI BHAGCHAND, AM For The Assessee : Shri P.C. Parwal (C.A.) For The Revenue : Shri Varinder Mehta (CIT) ORDER PER: VIJAY PAL RAO, J.M. This appeal of the assessee is directed against the order dated 29.09.2017 of CIT(A), Bikaner for the assessment year 2006-07. The assessee has raised the following grounds:- 1. The Ld. Commissioner of the Income Tax (Appeals) has erred on facts and in law in confirming the addition of ₹ 10,42,85,000/- made by AO on account of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.2006. Since, the land was not available to the assessee as on 31.03.2006 therefore, the realization value of the land at the end of the financial year is zero and accordingly, the assessee has considered the same at nil which is appropriate as per the principle of prudence accounting policy. The ld. AR has further contended that whenever the assessee retrieves the lands from encroachment the same is offered to tax therefore, the said method of valuing the closing stock adopted by the assessee is Revenue natural. The assessee is consistently following the said method of closing stock and therefore, the addition made by the AO is not justified. The ld. AR as referred to the details of the land which is under encroachment and litigation and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dinate Bench of this Tribunal vide order dated 23.02.2018 in ITA No. 311/JP2014, 420/JP2014 and others has considered this issue in para 5 as under:- 5. We have considered the rival submissions as well as relevant material on record. At the outset we note that this Tribunal in assessee s own case for the assessment year 2007-08 vide order dated 24.06.2011 in ITA No. 1267 1387 of 2010 has considered this issue in para 5.7 as under:- 5.7 During the course of hearing, the ld. AR was asked as to whether land which has been valued at nil as on 31-03-07 to the extent of ₹ 145.33 11 crores was purchased during the year. We were informed that the land was not purchased in this year. We are not having the details of the litig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce in the next year s account. This canceling out of the unsold stock from both the sides of the accounts leaves only the transactions on which there have been actual sales and gives a true and actual profit or loss on his year s dealings. The only exception is that unsold stock can be valued at the cost price or market value whichever is less. The notional loss, if any, can be claimed in the year when unsold stock has a lesser value as compared to the stock price. However, notional profit cannot be added in case market value is more than the cost. Hence, valuation of the stock is to be based on the same method for both opening and closing stock. The AO has simply not allowed deduction of ₹ 145.33 lacs on the ground of not accepting t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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