2015 (11) TMI 1438

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.... head General Expenses without appreciating the assessee's written submissions filed before her on the above issue and judicial pronouncements relied upon therein." 3. It was submitted by Learned A.R. of the assessee that ground No. 1 is not pressed and therefore, ground No. 1 is rejected as not pressed. 4. Ground No. 2 is as under: "2. That the learned C.I.T.(Appeals) has further erred in law and on facts in confirming the capitalization of Insurance Expenses incurred in respect two new Cars amounting to Rs. 32,112/- misinterpreting the provisions of Section 31 of the I.T. Act and without applying her mind properly to the written submissions filed before her on the above issue and the judicial pronouncement relied upon therein....

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....s 31 of the Act. Therefore, for allowing the claim of insurance expenditure u/s 31 of the Act, this aspect is not relevant as to whether this is capital expenditure or not as per this judgment of Hon'ble Andhra Pradesh High Court. Respectfully following this judgment of Hon'ble Andhra Pradesh High Court, we hold that the disallowance made by the Assessing Officer and confirmed by CIT(A) on account of payment of insurance premium of Rs. 32,112/- is not proper and justified. We, therefore, delete the same. Ground No. 2 is allowed. 8. Ground No. 3 to 8 are inter-connected, which read as under: "3. That the learned C.I.T.(Appeals) has further erred in law and on facts in confirming the addition of Rs. 26,15,237/- in the value of c....

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....allowed adjustment of the enhancement of value of closing stock in the opening stock of subsequent assessment year i.e. 2002-03 in spite of the assessee's specific request in application U/s 154 filed before the A.O." 9. It was submitted by Learned A.R. of the assessee that the assessment order passed by the Assessing Officer u/s 143(3) for assessment year 97-98 is available on pages 148 to 150 of the paper book. He also submitted that on pages 146 and 147 is assessment order passed by the Assessing Officer u/s 143(3) for the assessment year 2004-05. Thereafter he submitted that in all earlier years and later years, the assessee is following the same method of valuation of closing stock and as per these two assessment orders passed b....

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....the Department in earlier years as well as in later years and the method adopted by the assessee is same in the present year, in earlier years and later years also. As against this, this is the case of the Assessing Officer that adopting FIFO method for valuation of closing stock is more suitable in present case. In our considered opinion, on this reasoning, an accepted and recognized method of valuation of closing stock as being adopted by the assessee cannot be discarded and another method cannot be adopted by the Assessing Officer. This is not the case of the Assessing Officer that the method adopted by the assessee for valuing closing stock in the present year, in earlier years and later years is not a recognized method of valuation of ....

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....dicial pronouncement relied upon therein. 10. That the learned C.I.T.(Appeals) has further erred in law and on facts in not appreciating that the assessee was fully entitled to claim the deduction U/s 80IB as it satisfied all the conditions laid down therein." 13. Learned A.R. of the assessee placed reliance on a judgment of Hon'ble Bombay High Court rendered in the case of CIT vs. Penwalt India Ltd. [1992] 196 ITR 813 (Bom). He also submitted that the profit & loss account of the assessee for the present year is available on page No. 5 of the paper book. He also drawn our attention to pages 71 & 72 of the paper book which contains manufacturing process of shoe upper and details of shoe manufacturing materials. 14. Learned D. R....