Appeal allowed: Work in progress not applicable in job work scenarios. Revenue's appeal dismissed.

The appeal against the addition of closing stock of work in progress was allowed in favor of the appellant. The Tribunal ruled in favor of the appellant, noting that work in progress was not applicable in job work scenarios. The Revenue's appeal was dismissed, and the addition was directed to be deleted from the total income.

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Issues Involved: Appeal against addition of closing stock of work in progress.

Summary:
1. The appellant, engaged in fabric printing on job work basis, disputed the addition of closing stock of work in progress by the Assessing Officer (AO).
2. The AO calculated the closing stock based on the average processing days and cost per meter, adding Rs. 4,96,625 to the total income.
3. The ld. CIT(A) upheld the addition citing accounting principles and previous tribunal decisions.
4. The appellant argued that as a job worker, they did not own the goods and followed consistent accounting practices as per AS-2.
5. The appellant relied on tribunal decisions supporting their case.
6. The Tribunal favored the appellant, citing precedent cases where work in progress was not applicable in job work scenarios.
7. The Tribunal dismissed the Revenue's appeal and allowed the appellant's appeal, directing deletion of the addition.

Conclusion: The appeal against the addition of closing stock of work in progress was allowed in favor of the appellant.

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