TaxTMI 
TaxTMI 
2020 (4) TMI 404
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....nces of the case, the learned CIT(A) is correct in deleting the addition of Rs. 3,74,11,219/- on account of difference in trading account ignoring the fact that the assessee has failed to reflect correct income as per memorandum of trading account as per provisions of section 145A of the IT Act, 1961. 2. Whether on the facts and circumstances of the case, the learned CIT(A) is correct in excluding the duty/cess/fees in the memorandum trading account ignoring the provisions of section 145A of the I.T. Act, 1961. 3. The appellant craves leave, to add, alter or amend any ground of appeal raised above at the time of the hearing. 2. Briefly stated facts of the case are that the assessee was engaged in the business of manufac....
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....rival submission of the parties and perused the relevant material on record. The issue in dispute involved in the case is whether there any difference in valuation of the stock as compared to exclusive method, if inclusive method is adopted for valuation of the stock. The Ld. CIT(A) has adjudicated the issue in dispute and deleted the addition of Rs. 3,74,11,219/-. The relevant finding of the Ld. CIT(A) is reproduced as under: "5.5 Coming to the ground at (c) above with respect to the disallowance on account of the difference in trading account u/s 145A in the impugned order, it is observed there from that it is mentioned, inter alia, "...The assessee has failed to reflect income as per memorandum of trading account as above. The p....
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....ference in the trading account u/s 145A of the Act - there is a difference in the profit between the trading account computed under the exclusive method wherein duty is not included in the value of an expenditure or inventory or sale or closing stock and under the inclusive method duty is included; the sanctity of the account will remain only if under both methods, the results (profits) are same. 5.6 From the submission of the AR of the appellant it is observed that in the calculation mentioned in the impugned order, arithmetical errors have crept in inadvertently whereby the difference in profit has arisen in the trading accounts between both methods. Also, other mistakes pointed out during the appeal hearing appear plausible as t....
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....basis of the report of the Tax Auditor upheld the order of the Ld. CIT(A). The relevant finding of the Tribunal is reproduced as under: "7. On considering rival contentions, we find that the learned Commissioner of Income Tax (Appeals) has examined the factual matrix and has granted relief to the assessee. The exercise as to whether an adjustment/addition is required consequent to computation of income by applying inclusive method as required u/s 145A, was examined by the tax auditor and this report was accepted by the learned CIT(A). Under these circumstances, we see no reason as to why the issue should be sent back to the Assessing Officer for fresh verification. In the result, the finding of the First Appellate Authority is uphe....
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....83 29.932,133 12.336,429 10.922.195 13,651,459 12.086,471 1,315,030 1,164,276 1,541,055,225 1,712,480,204 171,424,979 Opening Stock: Work In Process Finished Goods 13.879.951 4,826,299 16,153,271 5.616,772 2,273,320 790.473 Raw Material Consumed (A) 992,701,115 1,101,582,527 108,881,412 Stores & Spares Consumed (B) 12,657,254 12,870,810 213,556 Operating & Other Expenses 286,771,755 308,626,754 21,854,999 Excise Duty & VAT (C) Profit before tax CONSUMPTION OF RAW MATERIAL (A): Opening Stock Purchases Less :Closing Stock CONSUMPTION OF STORES & SPARES (B) Opening Stock Purchases Less :Closing Stock Note:- (92....