9911796707
TMI Blog2021 (2) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... mited), for the assessment year 2014-15, assessee preferred this appeal on 3 grounds. Ld. AR, however the time of arguments, gave up grounds No. 1 and 2 and confined the arguments to ground No. 3 in respect of the disallowance of forward losses basing on the closing stock for the assessment year 2013-14, which would be the opening stock for the assessment year 2014-15. 2. Brief facts of the case are that the assesseeis a private limited company incorporated under the provisions of the Companies Act, 1956 and is mainly engaged in the trading of agricultural commodity i.e. cotton; that during the immediately preceding year i.e. AY 2013-14, the assessee has valued its closing stock based on Net Realizable Value (NRV), in accordance with the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - as against returned loss of Rs. 3,18,86,095/- thereby reducing the losses. Hence the available loss frob/f with the appellant is Rs. 56,44,239/-. The AO had confronted this to the appellant vide note sheet dated 28.11.2016. There is no provision for keeping such disallowances in abeyance. The AO restricted the set-off of brought forward loss to Rs. 56,44,239/-. On the facts as discussed supra, this ground is decided against the appellant. The action of the AO is upheld" 4. Aggrieved by such findings of the Ld. CIT(A) the assessee preferred this appeal. 5. At the outset, Ld. AR submitted that the assessee is contemplating to settle its litigation for AY 2013-14 and AY 2014-15 by opting for Vivad-se- Vishwas Scheme, but the above issue is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. The closing stock of the previous year has to be treated as the opening stock of the current year and there cannot be any quarrel to it. Because the assessee is playing this direction/clarification in order to get the matter stated under the Vivad-se-Vishwas Scheme, in the absence of any dispute as to the principle involved in this, we are of the considered opinion that there is no harm in issuing such clarification and we accordingly direct the authorities to treat the closing stock of the assessment year 2013-14 as the opening stock for the assessment year 2014-15. We accordingly clarify that the authorities may treat the closing stock of the Assessment Year 2013-14 as the opening stock for the assessment year 2014-15. With this obser ..... X X X X Extracts X X X X X X X X Extracts X X X X
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