TMI Blog2020 (4) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... 5A of the Act following the inclusive method. The finding of the Ld. CIT(A) on the issue in dispute is upheld. - Decided in favour of assessee. - ITA No.4061/Del./2017 (Assessment Year: 2010-11) - - - Dated:- 24-2-2020 - SHRI O.P. KANT, ACCOUNTANT MEMBER ANDSHRI KULDIP SINGH, JUDICIAL MEMBER Appellant by Shri S.N. Meena, Sr.DR Respondent by Shri Rohit Tiwari, Adv. And Shri K.N. Gupta ORDER PER O.P. KANT, AM: This appeal has been filed by the Revenue against the order dated 15/02/2017 passed by the learned CIT(Appeals)-39, New Delhi [in short the Ld. CIT(A) ] for assessment year 2010-11 raising following grounds: 1. Whether on the facts circumstances of the case, the learned CIT(A) is correct in delet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tained. 4. On the contrary, the learned counsel of the assessee filed a copy of the Tax Audit Report in the case of the assessee and referred to the Appendix -II of the said report, which is the statement showing details of effect of inclusive and exclusive method for valuation of the stock on the profit and loss account. The learned counsel submitted that profit before tax in both the inclusive and exclusive method of the valuation is same and therefore no addition was justified. He also submitted that the identical issue was raised in earlier assessment year 2008-09 and 2009-10 and the Tribunal in ITA No. 903 and 995/del/2013 has allowed in favour of the assessee. 5. We have heard rival submission of the parties and perused the rele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ood-in-process or finished goods, all overhead expenses, besides the cost of raw material, had to be added. If any system of accounting excluded these expenses, it will result in distorted picture of profits as the profit of one year was likely to be shifted to another year. Each year being a self-contained unit under the Income Tax Act, it was not only the right but the duty of the assessing authority to determine what would be the correct income of the relevant year. In view of the position explained above an amount of ₹ 3,74,11,219/- is hereby disallowed... From the extract taken from the impugned order, it is observed that the reason behind the allowance is the difference in the trading account u/s 145A of the Act - t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore us, the learned counsel has referred to the relevant pages of the Tax Audit Report, wherein the Tax Auditor has analysed the inclusive as well as exclusive method of valuation and the impact on the profit and loss account. The relevant part of the Tax Audit Report (supra) filed by the learned counsel is reproduced as under: 5.2 The learned Auditor has pointed out that there is no difference in the profit before tax in both the inclusive and exclusive method of indirect taxes/duty/cess/fee etc. for valuation of the stock. 5.3 The Tribunal in the case of the assessee in assessment year 2008-09 and 2009-10 in ITA No. 903 and 995/Del/2013, has on the basis of the report of the Tax Auditor upheld the order of the Ld. CIT(A). The r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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