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TMI Blog2012 (7) TMI 757X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 in the month of October, 2007 and not in the month of April, 2007. Considering the G.P. rate of 17.8% in respect of the said machines and also considering the sale price of Rs.30,72,000, the finished pronlduct valued at Rs.13,32,448 is certainly a case of under valuation. Therefore the said order of the CIT(A) is reasonable and it does not call for any interference - in favour of assessee. - ITA No.1454/Hyd/2010 - - - Dated:- 25-5-2012 - SHRI D.KARUNAKARA RAO, SHRI SAKTIJIT DEY, JJ. Department by : Shri V.Srinivas CIT-DR Assessee by : Shri Sarang Shah O R D E R Per D.Karunakara Rao, Accountant Member: This appeal by the Revenue and the Cross-Objection by the assessee are directed against the order of the CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old for Rs.22,33,90,325. The assessing officer worked out the average price of each machine sold at Rs.1,01,54,106. Reducing the excise duty and sales tax and the gross profit of 17.8%, he worked out the cost of the machines in stock at Rs.1,11,73,470 and added the difference of Rs.98,41,022 on account of under valuation of closing stock. 4. On appeal before the CIT(A), assessee contended that average price of the machines could not be taken because the assessee produces many kinds of machines and the sale price of some of its machines is as low as Rs.5,00,000. The assessee also submitted details of all the 24 machines manufactured and of the pricing of the 22 machines sold. The CIT(A) found merit in this contention of the assessee and af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss account. He further submitted that outsourced purchases of Salzer machine received by assessee in first week of April, 2007 and debited to purchase in next financial year is sought to be taxed in the current year which is totally unjustified. He submitted that the method of valuation of closing stock followed by the assessee is consistent and according to Accounting Standard AS 2. He further submitted that the closing stock of this year is to be taken as the opening stock of next year and therefore, there is no benefit which can be said to entail to the company since valuation of closing stock is on consistent method. 8. We heard the parties and perused the orders of the Revenue and the information filed before us. So far as the additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide any details regarding exact nature of the machines which were lying in the stock. In case, the explanation of the appellant, duly supported by technical details and bills was to be rejected, the onus lies squarely on the Assessing officer to provide evidence for rejecting the explanation and also to show as to which were the machines actually lying in stock. This onus has not been duly discharged by the Assessing officer. 8.5 I find that there is no reason to dispute the fact that the machines lying in stock were sold to M/s. Finolex Cables Limited for Rs.30,72,000/-. Accordingly, the assessing officer is directed to reduce gross profit of Rs.17.8% from the sale price of the machines amounting to RS.30,72,000/-. The difference between ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat leaves for consideration only ground No.1 for adjudication and the same reads as follows The learned Commissioner of Income-tax(Appeals) has erred in not allowing claim for Employees Contribution to Provident Fund of Rs.35,977. In this regard, learned counsel referred to para 6 of the impugned order of the CIT(A), which reads as follows- 6. The first issue now pertains to the disallowance of employees contribution to the Provident Fund amounting to Rs.35,977/-. I find that the contribution made by the appellant was late. During appeal proceedings, these facts have not been disputed. Therefore, I see no reason to interfere with the addition made on this account. 13. Referring to the above order of the learned CIT(A), the lea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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