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TMI Blog2012 (8) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... he addition made on account of notional interest income is thus warranted. Trading addition on account of closing stock shown in the balance sheet - CIT(A) after verification of various bills of future purchase, sales etc., recorded a finding to the effect that in the trading account, the assessee had just debited cost of sales , therefore, there is nothing wrong in showing closing stock directly in the balance sheet - CIT(A) also found that the closing stock of Future Urad amounting to Rs. 1,53,89,619/- in the Balance Sheet and in the Trading Account cost of future purchases is debited only to the extent of future sales. Hence question of showing Closing Stock in Trading Account does not arises - against Revenue. - I.T.A.No. 351/Ind/2011 - - - Dated:- 20-6-2012 - SHRI JOGINDER SINGH, AND SHRI R.C.SHARMA, JJ. Appellant by : Shri Keshav Saxena, CIT DR Respondent by : Shri Prakash Jain, C. A. O R D E R PER R. C. SHARMA, A.M. This is an appeal filed by the Revenue against the order of CIT(A) dated 30.09.2011 for the assessment year 2005-06. 2. Following grounds have been taken by the assessee :- On the facts and in law and in the circumstances of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the I. T. Rule and enclosed the additional evidence which are available on page number 25 to 29 and page number 152 153. The appellant has also filed the detail of same along with supporting, with his reply dated 5th December, 2008, which are on page number 1 to 7. After going through the same and appreciating the supporting it is found that the contention of the appellant that the cost of acquisition and improvement of the said property was Rs.20,28,091/- which is also evidenced from the Balance Sheet of the appellant for the Financial Year 2001-02 and onwards. Thus the Computation of Income of the appellant which shows that after considering the investment of Rs. 11,60,000/- made by the appellant in REC Bond u/ s 50EC the Taxable Capital Gain works out to Rs. NIL appears to be in order. In the result the said ground of appellant is allowed. A.O. Is directed to delete the addition of Rs.8,31,336/- on account of Long Term Capital Gain. 4.3 Ground No.3 relates to charging of Notional Interest Income of Rs.15,71,923/- being interest @ 12 % of margin money of Rs. 1,30,99,360/- given to Navratan Commodex Pvt Ltd. The brief facts are that the appellant is engaged in the commodit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant was further required to furnish clarifications and reconciliation in figures appearing in various papers filed. The appellant accordingly furnished further classifications etc. as under :- With reference to the hearing of the above referred appeal you have asked to reconcile the figures given now and filed with earlier reply of Urad Future account and Urad Delivery Account. in this regard we have to submit that all the confusion is arises due to the reason that in earlier statement brokerage and other expenses were neither added in the value of the purchases nor subtracted from sales value and directly debited to profit and loss account. we have prepared a comparative sheet in which figure given in earlier statement and now prepared as per your direction by taking the value as per sales and purchases as per the bills and given the effect of the brokerage and find that both the figures are in agreement which will be clear from the followings:- 1. That in the earlier statement which is on Page 105 and 4A a common account of Urad future and Urad Delivery was given and net loss of Rs. 11,04,568/- was claimed in computation of income. 2. The reason for setoff of profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sales then question of showing closing stock of Future Urad purchased in the last fortnight of March, 2005 in the Trading Account does not arise. Thus the appellant has rightly shown the closing stock of Future Urad amounting to Rs. 1,53,89,619/- in the Balance Sheet and in the Trading Account cost of future purchases is debited only to the extent of future sales. Hence question of showing Closing Stock in Trading Account does not arises. Thus on overall circumstances of fact and circumstance of the case, verification of documents, Bills of future purchases and sales and the appellant's contention, the addition of Rs. 1,53,89,619/- made by the A.O. is found to be totally unwarranted and uncalled for and accordingly directed to be deleted. 6. Against the above order, the Revenue is in appeal before us. 7. We have considered the rival submissions and have gone through the orders of the authorities below and found from record that after calling a remand report, the CIT(A) recorded his own finding to the effect that cost of acquisition and improvement of property sold by the assessee was Rs. 20,28,091/- as per the balance sheet of the assessee for financial year 2001-02 and onwar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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