2011 (10) TMI 456

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....he Revenue under Section 260A of the Income-tax Act against an order dated 19.06.2009 passed by I.T.A.T., Jaipur Bench, Jodhpur (for short called Tribunal) in I.T.A. No. 1469/JP/2008 arising out of AY 2005-06. 2. By impugned order, the Tribunal allowed the cross objection of assessee and dismissed the appeal of the Revenue and in consequence reversed the order of Commissioner of Appeals on the ....

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....n be taxed. The assessee came out with an explanation that the entire stock maintained by him does not consists of new arrival but it consists of partly old and partly new stocks of goods. The Tribunal then examined the issue in the light of explanation offered by the assessee and held that only 20% of the stock be treated as dead and obsolete and accordingly it be valued at 50% of its cost. The T....

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.... authorities were not justified in rejecting the claim of the assessee against dead and obsolete stock. We thus, while setting aside adverse findings of the lower authorities in this regard, direct the AO to compute the value of the physical stock at cost or market price which ever is less by further allowing deduction of Rs.8,18,220/-. In result cross objection No.2 in CO No.38/JP/09 is allowed."....

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....tion 260A ibid in an appeal arising out of such order. 9. In our opinion, therefore, once the Tribunal accepted the factual explanation of assessee and accordingly, deleted the additions in question made by A.O. by granting them partial relief in the matter of valuation of their stock in exercise of its appellate discretionary powers, then it would not involve any substantial question of law. I....