2016 (4) TMI 952

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... by the assessing authority and are duly accounted for in the particular year, the loss due to fall in value of stocks represented by those purchases has to be allowed even when the method of accounting adopted by the assessee company for A.Y. 2009-10 was not accordance with the method of accounting regularly employed by the Company, as enunciated in the provisions of section 145A of the Act"? 2. We have heard Mr.K.V.Arvind, learned counsel appearing for the appellant - Revenue. 3. We may record that the Tribunal while dealing with the contention of the assessee and the appellant -Revenue on the aforesaid aspect, has observed at Paragraph Nos.9 and 10 as under:- "9. A lot of emphasis has been placed by the Assessing Officer o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t the cost price or market price-whichever is less. We are unable to see any legally sustainable merits in the objections raised by the assessee. 10. Learned CIT(A) has, in her impugned order, raised doubts about genuineness of the purchases itself by questioning the reversal of entries in the subsequent year. We cannot, at this stage, sit in judgment over correctness of or impact of the accounting entries in the subsequent years. On the contrary, when assessee has offered this amount of Rs. 29.50 crores to tax in subsequent year, for whatever reasons other than incorrectness of this fall in value of stock, this addition amounts to double addition of income. All that is material for us is whether the fall in value of stock to the t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... whichever is less. The Tribunal further recorded that when the assessee has offered its amount of Rs. 29.50 Crores to tax in subsequent year, for whatever reason, other than incorrectness of this fall in value of stock, this addition amounts to double addition of income and ultimately, the Tribunal found that the order passed by the Assessing Officer for deletion of the entry and its confirmation thereof, by CIT(Appeal), deserves to be set aside. 5. Learned counsel for the appellant - Revenue has made a two fold submission. One is regarding the correct accounting procedure not followed by the assessee. He submitted that in the earlier year, prior to the assessment year in question, the goods were not shown as stock in trade, but in the ....