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Income Tax Appellate Tribunal, “D” BENCH: KOLKATA
Before: Shri A. T. Varkey, JM & Dr. A. L. Saini, AM]
ORDER
Per Shri A.T.Varkey, JM
This is an appeal filed by the revenue against the order of Ld. CIT(A)-1, Kolkata dated 20.03.2015 for AY 2005-06.
The sole issue involved in this appeal of revenue relates to deletion of addition of Rs.62,93,959/- on account of valuation of closing stock. 3. None appeared on behalf of the assessee at the time of hearing before us. After carefully perusing the records we find that this appeal can be decided by us ex parte after hearing the Ld. DR. 4. We have heard Ld. DR and carefully perused the material available on record. We note that the assessee had reduced the value of closing stock due to obsolescence as the mill was lying closed since 2002 and the value of closing stock and plant were being depleted. We also note that identical issue was considered by the Tribunal in assessee’s own case for AY 2004-05. We also note that the Ld. CIT(A) for deleting the impugned addition of Rs.62,93,959/- followed the Tribunal’s order dated 26.10.2007 in assessee’s own case for AY 2004-05 has observed as under: “4.2. The submissions of the Appellant have been considered. It is seen from the Assessment Order that the A.O. has made addition on the basis of addition made in the case of the 2 The India Jute & Ind. Ltd.., AY, 2005-06 Appellant on similar grounds in A.Y.2004-05. It is however seen that the same has been considered in A.Y. 2004-05 by Hon ITAT Kolkata, vide its order dated 26.10.2007 in which the ITAT has held as under- "We have given our careful consideration to the rival submissions made before us and have perused the orders of lax authorities. We have also considered the relevant material available on record. It is an undisputed fact that the Mill Of the assessee is lying closed since 2002 and the sale of the assessee-company during the year under consideration also came down to Rs.0.47 crores against Rs.13.65 crores in 2003-04 and Rs.29.29 crores in 2001-02. The assessee-company in support of its argument for de-valuation of stock has furnished details of sales of the finished good for the subsequent year, which has not been considered by the Id. CIT(A) holding that sale of subsequent year will not have any bearing for the relevant assessment year. However, it is also a fact that in the immediately next year also, the assessee has shown loss of Rs.0.l1 crore and if the so-called closing stock enhanced by the Revenue is being given effect to the opening stock, the loss would have increased comparing to the loss own by the assessee in this year at Rs.0.431 crore and, therefore, considering the above facts and circumstances, in our opinion, the action of A.O. and ld. CIT(A) in making and sustaining the addition was not correct and therefore, the same is deleted and the grounds raised
by the assessee in this regard are accepted." It is therefore, seen that the addition has been made in the current year under similar grounds and no new fads have been brought on record by the A.O in this year, therefore following the order of ITAT as above in the Appellant’s own case for AY 2004-05 the addition made by the AO of Rs.62,93,959/- is deleted.”
5. After hearing the Ld. DR and carefully considering the material available on record, we note that the issue involved is squarely covered in favour of the assessee by the decision of Coordinate Bench of this Tribunal in assessee’s own case for AY 2004-05 dated 26.10.2007 and the Ld. CIT(A) deleted the impugned addition by relying on the order of the Tribunal, cited supra. Since the Ld. CIT(A) deleted the addition by following the order of the Tribunal, and since there is no change in facts or law, we confirm the order of Ld. CIT(A) and the same is hereby upheld. So, the appeal of the revenue is dismissed.