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TMI Blog2015 (6) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that the facts and circumstances in all the appeals are identical except the assessment years and amount involved; therefore, the submissions made by him in case of one assessment year will also be applicable to others, and therefore, all the appeals can be heard together. The aforesaid submission of the ld. Authorized Representative were not objected to by the ld. Departmental Representative. We, therefore, proceed to dispose of all the appeals by a consolidated order for the sake of convenience and thus proceed with the facts for Assessment Year 2003-04 in IT(SS)A No.509/Ahd/2011. 3. IT(SS)A No.509/Ahd/2011, the assessee has raised following grounds of appeal:- 1. The Ld.ClT(A) has erred in law and on facts in deleting the addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year end and hence he asked the assessee to submit as to why work-in-progress should not be determined in this case. The assessee filed certain details in this regard and having considered the same, the Assessing Officer made addition of closing work-inprogress of Rs. 7,62,728/-. 4.1 Matter was carried before the First Appellate Authority, wherein various contentions were raised on behalf of assessee and having considered the same, CIT(A) granted relief to the assessee observing that the assessee is engaged in the business of dyeing and printing of cloth on job work basis for which fabric is supplied by parties and the assessee has been following consistent method of valuation of closing stock wherein it does not value chemicals consumed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t basis in past year where assessment has been done u/s 143(3). The CIT(A) further relied upon the decision of ITAT, C-Bench, Ahmedabad in the case of Bajaj Fashions Pvt Ltd v. DCIT, wherein similar issue has been decided in favour of the assessee, after considering the decision in the case of CIT vs. EMA Inida Ltd, (2008) 296 ITR 510 (All), by observing as under:- "11. In view of the above decision, in our considered opinion on the facts and circumstances mentioned above, we do not find any error in the consistently followed system of valuation of stock by the assessee. As the said system was accepted by the Department also in past in the case of the assessee, we do not find any good reason for departure from the said accepted method. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee had taken unsecured loan of Rs. 1,90,00,000/- from Varelli Fabrics Pvt Ltd, on which interest @ 18% amounting to Rs. 36,41,487/- has been paid as against prevailing market rate of 11.25%. Having considered the submission in this regard, the Assessing Officer observed that the rate of interest paid at 18% was in excess of market rate, therefore he disallowed interest expenditure to the extent of 6.75% after considering market rate of interest @ 11.25% and the disallowance has been worked at Rs. 13,65,558/-. 5.1 Matter was carried before the First Appellate Authority, wherein the CIT(A) granted relief to the assessee by observing as under : "5.2 I have carefully considered the Assessing Order and submission made by the App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) be set aside and that of Assessing Officer be restored. On the other hand, ld Authorized Representative for the assessee supported the order of the CIT(A) in this regard and submitted that Hon'ble Gujarat High Court in Tax Appeal No.1126 of 2007 with Tax Appeal No.814 of 2009, in assessee's own case, similar issue has been decided in favour of the assessee by upholding the order of the Tribunal, who has granted relief to assessee, as under:- "10. We have heard learned advocates appearing for both the parties and perused the material on record. We have also perused the decision of the Apex Court in the case of Walchand and Co. Private Ltd. (supra), relied on by the learned advocate for the respondent-assessee, wherein it is hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as mentioned in the order of Hon'ble Gujarat High Court in assessee's own case (supra), we are not inclined to interfere with the findings of the CIT(A) who has rightly deleted the addition of excess payment of interest to sister concern amounting to Rs. 13,65,558/-; accordingly, the same is upheld. 5.4. Similar issue arose in Assessment Years 2004-05, 2006- 07, 2007-08 & 2008-09 wherein the CIT(A) has granted the relief on similar issue by deleting the amount of Rs. 16,25,550/-, Rs. 16,20,956/-, Rs. 16,20,956/- and 16,25,709/- respectively, on addition for excess payment of interest to sister concern. Facts being similar, so following the same reasoning as mentioned above, this issue in all these appeals is decided in favour of as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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