TaxTMI 
TaxTMI 
2022 (5) TMI 602
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....ble Tribunal and filed the affidavit for condonation of delay. We find the facts mentioned in the affidavit are reasonable and accepted. Contra, Ld. DR has no specific objections. Accordingly the delay is condoned and admit the appeal. The assessee has raised the following grounds of appeal: 1. General: On the facts and in the circumstances of the case and in law, the order passed by the Learned Pr, Commissioner of Income Tax (Central) - 2, Mumbai (here-in-after referred to as "Pr. C IT") u/s 263 is bad in law and liable to be quashed. 2. The Ld. Pr. CIT erred in law and on facts in invoking provisions of section 263 in respect of the issue of allowability of cost of stores of Rs 61,80,986 ignoring the fact tha....
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.... are that the assessee company is engaged in the business of manufacturing of papers. The assessee has filed the return of income for the A.Y 2014-15 on 29.09.2015 with a total income of Rs. Nil. Subsequently the case was selected for scrutiny and notice u/s 143(2) and 142(1) of the Act are issued. In compliance, the Ld. AR of the assessee appeared from time to time and filed the submissions and documents. The assessing officer (A.O) considered the facts and material submitted supporting the information and accepted the returned income and passed the order u/s 143(3) of the Act dated 16.10.2017. 3. Subsequently the Pr.CIT on perusal of the records found that the A.O has passed the passed the assessment order without examining and making ....
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....es items are carried in opening stock where sold upon closure of the manufacturing unit and therefore the items are consumable and packing stores and the nature of items required for repairs and maintenance of machinery and supported with the details. The Ld. AR relied on the provisions of Sec. 37(1) of the Act to claim as a business expenditure and supportive judicial decisions. Whereas, on first issue of set off of loss, the Pr. CIT is of the opinion that the assessee has business loss for the A.Y 2007-08 which could not be set off against the income from other heads in the current assessment year. The assessee has earned income from short term capital gains and claimed set off of brought forward loss. The Pr.CIT dealt on the provisions o....
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....dicial to the interest of the revenue and direct the A.O to do afresh assesseement. The Ld.AR submitted that the explanation 2 to sec 263 of the Act ought to be considered only when the AO has not applied his mind, the facts are to be verified and no enquiry is conducted. Whereas, on the merits of the case with respect to set off of brought forward business loss against the short term capital gains and the cost of stores debited to profit and loss account pertains to the earlier years. The Ld.AR substantiated the arguments relying on the documentary evidence, provisions of the Act, judicial decisions and factual paper book and prayed for allowing the appeal. 7.Whereas the Ld. DR supported the order of the Pr. CIT and made submissions wit....
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...., stores, sundry sales(scrap) and compliance of Accounting Standard 2 of ICAI and claim allowable u/sec37(1) of the Act. We find the assessee has filed the information incompliance to the notice issued and clarifications are filed over a period of time in the assesseement proceedings on the cost of stores debited to the profit and loss account. The Ld.AR has demonstrated the documents filed in the factual paper book discussed. Accordingly the assessee has diligently complied with the provisions of Act, and maintained the facts /details in the books of accounts and fallowed the Accounting standard -2 in valuation of inventories. Therefore we are of the opinion that the directions of the Pr.CIT order in respect of claim of stores in the profi....