TaxTMI 
TaxTMI 
2024 (11) TMI 887
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....filing the appeal before the Tribunal and thereby there is no delay in filing the appeal in the event of filing of Form No. 8 & Form No. 8A. Upon perusal of appeal memo and Form No. 8 & Form No. 8A uploaded by the Appellant- Revenue, we accept the submissions of the ld. DR. 3. The Appellant-Revenue raised only one ground in challenging the direction of the ld. CIT(A) in considering non-existing stocks claimed by the assessee for the purpose bank loan as opening stock of next assessment year by placing reliance on the decision of the Hon'ble Supreme Court in the case of VKJ Builders and Contractors Pvt. Ltd. v. CIT reported in 318 ITR 204 (SC). 4. Brief facts relating to the case are that the assessee filed return of income declaring total income at Rs.. NIL after adjusting business loss of Rs.. 2,46,305/-. The assessment was completed under section 143(3) of the Act vide order dated 31.03.2014, inter alia making addition on account of difference in closing stock of Rs.. 76,28,385/- by adjusting same against brought forward business loss, consequently determining total income at Rs.. Nil. Aggrieved by the order of the Assessing Officer, the assessee preferred an appeal before the ....
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....Tax dated 10.08.2000, treatment of added closing stock as opening stock for next year is not acceptable and the assessment is completed with no interference on the assessment order passed u/s. 143(3) on 31.03.2014. 5. Considering the facts and circumstances of the case as discussed above the income/loss is assessed and computed u/s 143(3) r.w.s. 254 of the I.T. Act, 1961 as under: Total income returned before adjusting business loss as per order u/s 143(3) dated 31.03.2014 Rs.2,46,305 Add. Difference in closing stock between return of income and statement submitted to Bank Rs.76,28,385 Rs.78,74,690 Less: Business loss adjusted Rs.78,74,690 Total income assessed u/s 143(3) r.w.s. 254 on 28.12.2018 NIL COMPUTATION OF LOSS Broad forward Business loss as per order under Sec. 147 r.w. Sec. 143(3) of the Income-tax Act, 1961 dated 30.03.2016 for A.Y. 2010-11 Rs.5,98,14,644/- LESS: Loss adjusted in this order dated 28.12.2018 Rs.78,74,690/- Balance loss to be carried forward Rs.5,19,39,954/- 5. Aggrieved by the order of the Assessing Officer, the assessee filed an appeal before the ld. CIT(A). The assessee contended that the Assessing officer has erred in....
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....the case we are dealing with is u/s 69 of the Act. The core issue in VKJ Builders (supra) was valuation of closing stock. The issue is hand, here also, is closing stock. Therefore, respectfully following the Judgment of the Hon'ble Supreme Court in VKJ (Supra) it is held that closing stock taken by the AO for the previous accounting year shall be the opening stock for coming accounting year. In sum, the appeal is Partly Allowed. 6. The ld. DR submits that the assessee has been constantly adopting two different closing stock methods i.e., one for audited balance sheet i.e., in the return of income and the other for availing credit facilities from bank for all the financial year relevant to the assessment years 2008-09 onwards. She submits that the difference in the value of stock was added as undisclosed investment under section 69 of the Act. She refers to AY 2009-10 and submits that the ld. CIT(A) confirmed the addition made therein rejecting the plea for treating the closing stock adopted for the year ending 31.03.2008 as opening stock of the subsequent year. The Tribunal held that it is fundamental principle of the accounting of closing stock of earlier year form part of op....
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....2 of the assessment order. Further, there is no doubt the Assessing Officer made addition in the event of consideration only on the basis of value of closing stock given to Bank, which is a 3rd party, but, not on the statement of closing stock shown in the return of income. We find the order of this Tribunal for AY 2008-09, wherein, by following the decision of the Hon'ble High Court of Madras in the case of CIT v. N. Swamy 241 ITR 363 (Mad), held that the assessee's income is to be assessee by the ITO on the basis of material, which is required to be considered for the purpose of assessment, but not on the basis of statement, which the assessee might have given to a 3rd party unless there is any material to corroborate the statement given to the 3rd party. The relevant part of the order of the Tribunal at para 4.1 of the order dated 02.01.2020 in assessee's own case for AY 2008-09 is reproduced herein below: 4.1 Before us, the ld. DR has relied on the decision in the case of Coimbatore Spinning & Weaving Co. Ltd. v. CIT and pleaded for reversing the appellate order. We have gone through the above case law as well as the decision relied on by the ld. Counsel in the case of CIT v.....