TaxTMI 
TaxTMI 
2013 (2) TMI 529
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....under valuation of Stock of Motor Cycles & Spares Parts. The CIT(A) has sustained the entire addition made by the ld. ACIT without assigning any specific reason for the same.. 3. The ld. ACIT has made an addition of Rs.1,00,000/- out of purchases of stationery & printed material in Mohali Branch which was purchased on account of new opening of Maruti Showroom. No value of stock was left at the end of the year. The AO made an addition of Rs.1,00,000/- on account of non-avail ability of closing stock. The ld. CIT(A) has confirmed the same without assigning any specific reason for the same. 4. The firm is maintaining a guest house at Mohali for the stay of officer of Maruti Udyog Ltd. and has paid rent of Rs.1,26,667/- for the period ....
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....1 of the order of the ITAT, Chandigarh in assessee's own case vide I TA No. 1233/Chd/2009 A.Y. 2006-07, dated 18.03.2012, that the issue is covered against the Revenue. The relevant part of the order of the ITAT is reproduced hereunder : "11. Ground Nos.4 and 5 raised by the Revenue are against the addition made on account of valuation of stock. The assessee has also raised Ground No.2 in its appeal against the addition of 20% of Rs.8,59,650/- being the alleged under-valuation of closing stock of spare parts confirmed by the Commissioner of Income-tax (A). The assessee, by Ground No.2 in its Cross Objection has also raised the issue as in Ground No.2 of its appeal. The Ground No.3 raised by the assessee in its Cross Objection is in support....
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.... of motorcycles @ 2% and spare parts @ 10% the value of which came to Rs.5,04,235/- and Rs.8,59,650/- respectively resulting in addition of Rs.13,63,885/-. 13. Before the CIT(A) the plea of the assessee was that addition on account of under valuation of motor cycles was made by taking average cost without considering the model wise cost of the different motor cycles reflected in the closing stock. The Learned AR further pointed out that in the bill referred to by the Assessing Officer, there were two models of motorcycles, Splender Plus and Super Splender, cost of which was calculated as per invoice. The working of the cost of both the models is reproduced in para 3.2 at page 7 of the appellant order. The assessee also filed the complete d....
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....he stock in spare parts, the CIT(A) forwarded the list filed by the Learned AR for the assessee to the Assessing Officer who had reiterated the same view as taken in the assessment order. The CIT(A) however, took note of the plea of the assessee that the GP percentage shown was higher than shown in the earlier year and the plea of the assessee that there was no motivation for suppressing the valuation of closing stock, which will be the opening stock of the subsequent year, the CIT(A) observed that though computerized details had been maintained by the assessee but in the facts and circumstances of the case, addition to the extent of 20% was upheld. 14. The Learned AR for assessee drew our attention to the details of closing stock of motor....
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....before the CIT(A) which were forwarded to the Assessing Officer for examination. The Learned DR for the Revenue placed reliance on the order of the Assessing Officer in respect of addition made on account of valuation of motor cycle and the findings of the CIT(A) on page 8 in respect of valuation of spare parts. 15. We have heard the rival contentions and perused the records. The issue of valuation of closing stock is on account of stock of motor cycles and stock of spare parts. The assessee has maintained item wise, quantitative details of the various models of motor cycles available in the stock at the end of the year. The valuation of the stock of motor cycles has been done by the assessee by adopting the cost and the allied charges as ....
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.... made by the AO. 7. Having regard to the entirety of the facts and circumstances of the case, we are of the opinion that 8 disallowance of Rs.50,000/- is fair and reasonable. Hence, to this extent, the order of the ld. CIT(A) is upheld. Therefore, assessee gets partial relief and this ground of appeal of the assessee is partly allowed. 8. In Ground No.4, the ld. 'AR' contended that the CIT(A) erred in confirming the disallowance of Rs.1,26,667/- on account of rent paid for maintaining a Guest House at Mohali on flimsy grounds. In the course of present appellate proceedings, assessee filed Form No.16A, whereby TDS of Rs.1,00,530/- has been deducted out of the rent paid and deposited in the Bank. The ld. CIT(A) held that there is no....