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TMI Blog2008 (4) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... Krishnan for the respondent. JUDGMENT The judgment of the court was delivered by V. B. GUPTA J.— The Income-tax Appellate Tribunal (for short as "the Tribunal"), vide its order dated August 31, 2006, in I. T. A. No. 3231/Delhi/2004, relevant to the assessment year 2001-02 has allowed to the assessee relief of Rs. 15,48,502 on account of valuation of its opening stock. 2. Aggrieved by the decision of the Tribunal, the Revenue has filed the present appeal. 3. Brief facts leading to the dispute are that the assessee is a registered firm showing income from business of manufacturing rubber flaps and retreading of tyres. Return was filed by the assessee declaring loss at Rs. 86,170 on October 29, 2001. During the assessment pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the Assessing Officer, a fresh plea was also raised by the assessee that there was, no doubt, a difference of Rs. 17,84,486 but then there was also a difference of Rs. 15,48,502 in the value of stock as on the opening day. It was explained that the value of closing stock as on March 31, 2000, as per bank statement was Rs. 40,06,760 whereas in the balance-sheet the same was at Rs. 24,58,257. Thus, a plea was made, that, if an addition to be made on account of difference between the stock shown to the bank and the stock shown in the balance-sheet is to be confirmed, reduction should be allowed for the difference which was there in the opening stock. Thus, it was pointed out that net difference of Rs. 2,35,983 only (Rs. 17,84,486 to Rs. 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods in the opening stock as between that shown to the bank and that shown to the Department should be reduced. 11. It has been held by the Commissioner of Income-tax (Appeals) that : "The Justice demands that reduction should be allowed for that part of the inflated cost which pertains to the opening stock, i.e., the closing stock of the last year. For that purpose, an addition of the equivalent amount for the inflated stock pertaining to the immediate assessment year is to be excluded. As for the year in question, a corresponding reduction will be allowed so as to avoid double addition." 12. The Tribunal has also confirmed the findings of the Commissioner of Income-tax (Appeals) on this issue. Further, both the authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X
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