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TMI Blog2014 (5) TMI 476X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee instead of taking the net realizable value of stock in the trading account took gross value of stock in trading account and claimed the decrease in value in its P&L A/c - Had it had claimed the net realizable value of closing stock in trading account, the debit of provision for diminution in value of stock in P&L Account under schedule 15 would not have appeared - The valuation of stock has been done on the basis of general accounting policy as regularly followed by the assessee - CIT(A) has rightly deleted the addition – Decided against Revenue. - I.T.A. No.4209/Del/2009 - - - Dated:- 29-4-2014 - Shri I. C. Sudhir And Shri T. S. Kapoor,JJ. For the Appellant : Ms. Y. Kakkar,DR. For the Respondent : Shri Anil Bhalla, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer. It was argued that before Ld CIT(A) no application for additional evidence was filed. Therefore, the Ld IT(A) has accepted the additional evidence without following the proper procedure. It was further argued that whole of the assets as mentioned at page 1 2 of paper book has been written off without any technical report. It was further submitted that Ld CIT(A) has given relief to the assessee on the basis that assessee was following generally accepted accounting policy to value stock at cost or net realizable value which is not correct as Ld CIT(A) should have considered the provisions for claim of such un-ascertained liability with respect to provisions of Income Tax Act. 4. The Ld AR, on the other hand, submitted that claim of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on by Ld AR were distinguishable. 6. We have heard the rival submissions of both the parties and have gone through the material available on record. We find that the Assessing Officer had made the addition in view of the fact that assessee had claimed an amount of Rs..30,45,000/- in the P L A/c as provisions for diminution in valuing of stock whereas the fact remains that assessee has been following its policy of valuing stock at cost price or net realizable value whichever is lower which is apparent from the accounting policy being followed by the assessee placed at paper book page 16. The net realizable value of stock is always determined after reducing the value of damaged/un-useable stock from the gross value of stock. The assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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