2016 (7) TMI 933

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..... g account has since been made to give effect to the under valuation of stock pertaining to the earlier year which was declared under the VDIS Scheme. The reconstructed trading account as stated in the submission of the appellant clarifies the position in this regard. It is therefore held that necessary effect to the VDIS declaration has since been given in the case of the appellant and no further .....

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..... the facts the Tribunal is right in law in upholding the addition of ₹ 9,44,771/- towards adjustment entry of closing stock valuation as a consequential effect to the accepted 'VDIS' proceedings in A.Y. 1997-98?" 2. The appellant is a firm being regularly assessed to tax by the I.T.Office, Vadodara. For the A.Y 1998-99, return of income was filed which was thoroughly processed by the Income .....

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..... ation of the aforesaid substantial question of law. 4. Mr. B.D. Karia, learned advocate appearing with Mr. Darshan Patel, learned advocate on behalf of Mr. R.K. Patel, advocate for the revenue submitted that the Tribunal failed to appreciate that the disputed amount of ₹ 9,44,771/- was in respect of prior period adjustments in connection with the preceeding assessment year since the corresp .....

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..... in deleting the addition of ₹ 9,44,771/-. He submitted that the assessee could not prove that the said amount was shown as investment in the closing stock by way of assets. 6. Having heard learned advocates for both the sides and having gone through the records of the case, we are of the view that the CIT(A) is justified in deleting the addition. The CIT(A) in para 3.3 of its order has obs .....

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..... shed and set aside and the question raised in the present appeal is required to be answered in favour of the assessee. 7. Accordingly, the question raised in the present appeal is answered in favour of assessee and against the revenue. The impugned order passed by the Tribunal is quashed and set aside. The order passed by CIT(A) is restored. Appeal is allowed accordingly.
Case laws, Decisions .....

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