TaxTMI 
TaxTMI 
2015 (12) TMI 1676
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.....U. Anjaneyalu, ld. Departmental Representative submitted that the first issue arises for consideration is valuation of the stock. 3. The Assessing Officer found that the assessee has deviated the method of valuation of the closing stock and provided Rs. 75.90 lakhs towards diminution in value of the closing stock. The assessee explained before the Assessing Officer that the closing stock has to be valued at the cost or market price whichever is less. During the year under consideration there was considerable depreciation on the market value of many shares due to scam in the market. The Assessing Officer found that the assessee has valued the shares at cost price in the earlier assessment years. However, for the year under consideration,....
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....cer disallowed the diminution in the value of shares to the extent of Rs. 75.90 lakhs. This Tribunal is of the considered opinion that as rightly submitted by the ld. Counsel for the assessee, the assessee has option to value the shares either at cost price or at market price, therefore, the assessee opted to value the shares at market price. Since the market price is less than the cost price, the assessee cannot be faulted with and the CIT(A) has rightly allowed the claim of the assessee. This Tribunal do not find any reason to interfere with the order of the CIT(A) and accordingly the same is confirmed. 6. The next issue arises for consideration is computation of indexed cost for capital gain. 7. Dr. U. Anjaneyalu, ld. Departmental ....
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....lation index. Therefore, the cost of inflation index of the year in which the assessee initially acquired the shares has to be taken into consideration. Referring to Explanation to sec. 48, the ld. Counsel submitted that the inflation index shall be the year when the assessee initially acquired the shares and not subsequent conversion. Referring to the decision of the Pune Bench of this Tribunal in the case of Kalyani Exports & Investment (P) Ltd (supra), the ld. Counsel pointed out that an asset cannot be acquired first as a non-capital asset at one point of time and again as a capital asset at a different point of time. According to the ld. Counsel, there will be one acquisition of the asset when the assessee initially acquires it irrespe....
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....the cost inflation index and the CIT(A) has apparently followed the above order, we do not find any reason to interfere with the order of the CIT(A). Accordingly, the same is confirmed. 10. In the result, the appeal of the Revenue for assessment year 2002-03 is dismissed. I.T.A.No. 1841/Mds/2011 A.Y 2007-08 11. Dr.U. Anjaneyalu, ld. DR submitted that the first issue arises for consideration is disallowance of 2% of the dividend income earned by the assessee. 12. The ld. DR submitted that the assessment year under consideration is 2007-08, therefore, Rule 8D is not applicable. However, a reasonable estimate has to be made since the assessee has incurred expenditure for earning the income which does not form part of the total inco....
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....tisement. In the earlier assessment year, the assessee has claimed only Rs. 11,19,000/-. When the Assessing Officer called for explanation for marked increase in the expenses, the assessee could not explain properly. However, the Assessing Officer found that M/s Alpha Systems Ltd. is a group concern of the assessee. The magazine said to be published by M/s Alpha Systems Ltd was to be exclusively for the use of the assessee, therefore, there is no question of any payment for publicity of the magazine. According to the ld. DR, the assessee is engaged in facilitating Tax Index Number(TIN) which does not require any publicity at all. In the absence of any agreement for payment of Rs. 60 lakhs to M/s Alpha Systems Ltd, the Assessing Officer foun....