TaxTMI 
TaxTMI 
2002 (11) TMI 742
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....s against a sum of Rs. 86,11,550 claimed by the appellant. 2. That the learned CIT(A) has erred in law and on the fact while confirming the addition of Rs. 16,09,316 made on account of valuation of closing stock. 3. That the learned CIT(A) has erred in law and on the facts while rejecting the appellant's contention that the proportionate amount of premium on redemption of debentures should be allowed as a revenue expenditure for the year under consideration. 2. The facts relating to first ground of appeal are that the assessee was allowed deduction of Rs. 69,53,199 as against Rs. 86,11,550 claimed by the assessee under section 80-I of the Act. While reducing claim of deduction, the Assessing Officer held that interest shown in the other ....
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....ue authorities. The learned counsel for the assessee further submitted that facts and circumstances in the assessment year before us and in assessment year 1990-91, decided by the Tribunal are identical. It is admitted by the CIT(A) in para 21 of his order. The impugned order of the Assessing Officer also proceeds on the line assessment was made in the immediately preceding assessment year i.e. assessment year 1990-91. The learned counsel for the assessee further placed before us details of rate of transfer of grey wool tops, dyed wool tops to support his submissions that there was negligible difference in the price charged and the market value of the goods transferred. 5. The learned D.R., on the other hands, stated that facts for the ass....
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....essing Officer and this ground of appeal is allowed for statistical purposes. 7. The facts relating to next ground of appeal are that the assessee had valued its goods at cost or at realisable value whichever was lower. It was the claim of the assessee that sale price of several items available in the closing stock had fallen. Accordingly above items were valued at realisable price. The Assessing Officer rejected above contention and enhanced the value of the closing stock by applying the average of Rs. 46 per kg. This way an addition of Rs. 16,09,360 was made in the closing stock. 8. The assessee being aggrieved, challenged above addition in appeal before the CIT(A). It placed in appellate proceedings rate of waste at which closing stock....
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....the assessee. In the above background, this issue is also restored to the file of the Assessing Officer for passing fresh order in the light of our above directions. 11. In the next ground of appeal, the assessee has challenged rejection of claim of proportionate deduction of premium payable on redemption of debentures. The Revenue authorities disallowed this claim as according to them liability to pay premium would arise only in the year the debentures were to be redeemed. Therefore, no deduction on proportionate basis having regard to period of redemption could be allowed. The assessee is aggrieved and has come up in appeal. 12. Before us, the learned Counsel for the assessee relied on the decision of the ITAT, 'A' Bench Chandigarh in t....