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TMI Blog2019 (5) TMI 1963X X X X Extracts X X X X X X X X Extracts X X X X ..... yd/2017. 2. In the MAs, the assessee stated as under: "1. The grounds pertaining to reopening, even though, argued are not adjudicated. 2. While accepting that the issues really pertains to AY 2009-10 at the time of hearing, the ITAT has erroneously took up a new issue without giving an opportunity to appellant while dismissing the appeal of the assessee." 2.1 The assessee stated that in the interest of justice and fair play, t these are mistakes apparent from record in the order of the Tribunal and the Hon'ble Tribunal may pass such orders which it may deem fit having regard to the facts and circumstances narrated above. In view of the same, it is requested that the impugned order may be recalled and reheard in the interest of ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted by the department. Accordingly, the assessment was completed. Assessee accordingly carried forward the stock at Rs. 1,56,03,922/- as opening stock for the current AY 2010-11. Assessee submitted before the AO that as per accounting procedure, it has to carry forward the stock as per earlier financial statement. This is as per regular norms. AO observed that assessee is setting off the profit disclosed in the earlier year and hence he disallowed the stock value to the extent of Rs. 35 lakhs. 7.1 The question before us is, whether the additional income disclosed in the earlier AY in the stock will have impact in the current AY i.e. 2010-11. We considered the submissions and in our view, the assessee has inflated the closing stock by Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that the observation made by the Hon'ble ITAT about inflation of expenditure is not arising out of the orders of AO/CIT(A). The stand taken by AO was that stock was inflated as opening stock, whereas the Ld. CIT(A) has confirmed the action of AO by stating "Additional income offered during the survey cannot be re-categorised as stock". It was the contention of assessee that the addition to stock has happened in A Y 2009-10 and not in AY 2010-11 and the profit declared for this year is actual and there was no decrease of any stock or profit. 3.4 Further, he submitted that the concept of opening/ closing stock as 'expenditure' is new. Generally opening stocks and closing stocks are debits and credits to P&L account. It is g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for the case in hand. 5. Considered the rival submissions and perused the material on record. The assessee has come up on MA for the two issues; a) Ground on reopening was argued by ld. AR and bench has not adjudicated. b) ITAT has erroneously took up new issue without giving an opportunity to assessee while adjudicating the issue. 5.1 With regard to first issue, we checked our records and found that ld. AR has argued the issue briefly and not made elaborate submission, mainly focussed on the merit of the case. After considering the affidavit of the ld. AR, in our view, for the sake of natural justice, assessee deserves one more opportunity. Therefore, we are inclined to re-fix this issue for rehearing to both the parties for the li ..... X X X X Extracts X X X X X X X X Extracts X X X X
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