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TMI Blog2018 (8) TMI 1490X X X X Extracts X X X X X X X X Extracts X X X X ..... sing stock, he should have also objected to opening stock on same basis, which was not done - thus the action of the AO of changing the method of valuation of closing stock without pointing out any reason for the rejection of valuation of closing stock which was accepted by the department in earlier assessment year, is not justified. The calculation mistake done by the AO has been corrected by the Ld.CIT(A). The assessee has been consistently following the same method of valuation of closing stock year after year. The AO has been accepting this method in the earlier years also. Hence even on the ground of consistency, the order of the AO on this issue had to be reversed. - Decided in favour of assessee. Disallowance of depreciation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Depreciation on railway rakes. 3. We have heard Ld. CIT DR, Sh. A.K.Tiwari on behalf of the Revenue and Sh. Subash Agarwal, Advocate on behalf of the assessee. 4. On a careful consideration of the facts and circumstances of this case and material available on record, we find that the AO in this case made an addition of ₹ 5,76,23,688.23 to the closing stock of the assessee company. The assessee submits that during mining operations, the company produced Lumps Fines. These material are further crushed/screened as per the content of the extraction and the market requirements and the output is sold to different customers at exmines, FOR, FOB and CFR basis. Various material were lying at Mines, Crusher site, different railway s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tire iron ore fixes which were purchased were admittedly exported during the year and hence cost of purchased can not be taken while valuing the closing stock as on 31.03.2008. The First Appellate Authority appreciated this point and at page 9 deleted the addition by holding as follows:- I have considered the finding of the AO on this issue in the assessment order and the written submission as well as oral submission made by the AR during the appellate proceedings. I have also considered orders/ decisions of different judicial authorities brought on record on this issue. I find that (a) the assessee has calculated the valuation of closing stock during the relevant assessment year in the same way and manner and adopting the same m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal held that Assessing Officer had not given any logical basis for not accepting valuation of work-in-progress -Tribunal also observed that if Assessing Officer objected to valuation of closing stock, he should have also objected to opening stock on same basis, which was not done , I am of this view that the action of the AO of changing the method of valuation of closing stock without pointing out any reason for the rejection of valuation of closing stock which was accepted by the department in earlier assessment year, is not justified. Accordingly, assessee's appeal on this issue (ground no. 3) is allowed. 9. We find no infirmity in this factual findings of Ld.CIT(A). The assessee has given the details in the Paper Book. These d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessee had invested/purchased two Railways wagons. (b) That, the assessee purchased them for the sake of its business. (c) That, under the WIS, the ownership of these wagons were to be transferred to the Indian Railways after 10 years. (d) That, the assessee was the owner of these wagons for the initial 10 years. (e) That, the assessee got the value of Railways wagon amortized in its books of accounts as per the Company Act. (f) That, the amortization amount alongwith the depreciation of other assets was added back to the book profit to calculate the taxable income of the assessee. Keeping in view facts discussed above, it seems that AO failed to appreciate the fact that the assessee had offered the ent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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