CIT v. Bharat Commerce and Industries Ltd.

Nihon Parkerizing (India) Pvt. Ltd., Gurgaon vs. DCIT Circle-18(1), New Delhi

The Appeal of the assessee is partly allowed

Bench: Sh. Pradip Kumar Kedia & Shri Yogesh Kumar U.S.I.T.A. No. 5441/Del/2019 (A.Y 2013-14)

…st. In the absence of any basis for valuing the obsolete items at 50 per cent. of the cost, the Tribunal could not have upheld the findings of the Assessing Officer." 40. Hon'ble Delhi High Court in case cited as CIT vs. Bharat Commerce and Industries Ltd. - 240 ITR 256 (Del.) held that, "An assessee is free to adopt a particular method of valuation of its closing stock which it has to follow regularly from year to year. At the same time it is well settled that irrespective of the basis adopted for valuation for earlier years, the assessee has an option to change the method of valuation of closing stock, provide…

Sh Tech Park Developers Pvt. Ltd., Gurgaon vs. ACIT, Circle-22(2), New Delhi

In the result, grounds raised by the assessee are allowed for

Bench: SHRI S.RIFAUR RAHMAN (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

…vs. Hind Lamps Ltd., (1987) Taxation 85(3)-225 (All.) (vii) CIT vs. Mopeds India Ltd., 173 ITR 347 (AP) (viii) CIT vs. Bikaner Trading Co., 180 ITR 286 (Cal.) (ix) CIT vs. Hollungooree Tea Co., 192 ITR 125 (Cal.) (x) CIT vs. Bharat Commerce & Industries Ltd., 240 ITR 256 (Del.) (xi) P. Balakrishnan vs. Tranvancore Cochin Chemicals Ltd. 243 ITR 284 (Ker.) 18.1 In view of the aforesaid facts, it is submitted that in view of the clarification issued by the Institute of Chartered Accountants of India, as also Para 6 of ICDS IV having been struck down, the changed method of accounting followed by it from the AY 2018-…

Bg Exploration & Production India Ltd., Mumbai vs. DCIT, International Taxation, Circle-1, Dehradun

In the result, the appeals filed by the assessee for assessment years 2013-14 and 2014-15 are allowed as discussed hereinabove

Bench: Sh. N. S. Saini & Smt. Beena A. Pillaiita No. 7476/Del/2018 : Asstt. Year : 2013-14

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHE ‘I-1’, NEW DELHI Before Sh. N. S. Saini, Accountant Member And Smt. Beena A. Pillai, Judicial Member ITA No. 7476/Del/2018 : Asstt. Year : 2013-14 ITA No. 7477/Del/2018 : Asstt. Year : 2014-15 B.G. Exploration & Production India Vs Deputy Commissioner of Ltd., C/o BSR & Associated LLP, 1st Income Tax, International Floor, Lodha Excelus, Apollo Mills Taxation, Circle-1, Compound, N.M. Joshi Marg, Dehradun Mahalakshmi, Mumbai-400011 (APPELLANT) (RESPONDENT) PAN No. AAACE4569K Assessee by : Sh. Ajay Vohra, Sr. Adv., Sh. Anshul Sachar, Adv. & Sh. Neeraj Jain, Adv…

Bg Exploration & Production India Ltd., Mumbai vs. DCIT, International Taxation, Circle-1, Dehradun

In the result, the appeals filed by the assessee for assessment years 2013-14 and 2014-15 are allowed as discussed hereinabove

Bench: Sh. N. S. Saini & Smt. Beena A. Pillaiita No. 7476/Del/2018 : Asstt. Year : 2013-14

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHE ‘I-1’, NEW DELHI Before Sh. N. S. Saini, Accountant Member And Smt. Beena A. Pillai, Judicial Member ITA No. 7476/Del/2018 : Asstt. Year : 2013-14 ITA No. 7477/Del/2018 : Asstt. Year : 2014-15 B.G. Exploration & Production India Vs Deputy Commissioner of Ltd., C/o BSR & Associated LLP, 1st Income Tax, International Floor, Lodha Excelus, Apollo Mills Taxation, Circle-1, Compound, N.M. Joshi Marg, Dehradun Mahalakshmi, Mumbai-400011 (APPELLANT) (RESPONDENT) PAN No. AAACE4569K Assessee by : Sh. Ajay Vohra, Sr. Adv., Sh. Anshul Sachar, Adv. & Sh. Neeraj Jain, Adv…

Bg Exploration & Production India Ltd., Mumbai vs. DCIT, International Taxation, Dehradun

Bench: Shri R.K. Panda & Shri Kuldip Singh

…t. In the absence of any basis for valuing the obsolete items at 50 per cent. of the cost, the Tribunal could not have upheld the findings of the Assessing Officer.” 40. Hon’ble Delhi High Court in case cited as CIT vs. Bharat Commerce and Industries Ltd. – 240 ITR 256 (Del.) held that, 36 ITA No.6791/Del./2017 “An assessee is free to adopt a particular method of valuation of its closing stock which it has to follow regularly from year to year. At the same time it is well settled that irrespective of the basis adopted for valuation for earlier years, the assessee has an option to change the method of valuati…

DCIT, New Delhi vs. M/S. Hcl Comnet Ltd., New Delhi

In the result this ground is dismissed

Bench: Shri S.V. Mehrotra : & Shri C.M. Garg :

…such stock was allowed by the department in the assessment year 1996-97 and 1997-98. However, during the year under consideration, by disturbing the method of valuation the AO made addition. Jurisdictional High Court in case of Commercial and industrial Ltd. (240 ITR 256) upheld the order of the Tribunal alone claiming the loss arising out of valuation .of slow moving raw material as estimated realizable value. Since the finding recorded by the CIT(A) has not been controverted by Ld. D.R. We, therefore, do not find any reason to interfere in the finding of CIT(A) for deleting the addition on account of valuation…

Hcl Comnet Ltd., New Delhi vs. DCIT, New Delhi

In the result this ground is dismissed

Bench: Shri S.V. Mehrotra : & Shri C.M. Garg :

…such stock was allowed by the department in the assessment year 1996-97 and 1997-98. However, during the year under consideration, by disturbing the method of valuation the AO made addition. Jurisdictional High Court in case of Commercial and industrial Ltd. (240 ITR 256) upheld the order of the Tribunal alone claiming the loss arising out of valuation .of slow moving raw material as estimated realizable value. Since the finding recorded by the CIT(A) has not been controverted by Ld. D.R. We, therefore, do not find any reason to interfere in the finding of CIT(A) for deleting the addition on account of valuation…

DCIT, New Delhi vs. M/S. Hcl Comnet Ltd., New Delhi

In the result this ground is dismissed

Bench: Shri S.V. Mehrotra : & Shri C.M. Garg :

…such stock was allowed by the department in the assessment year 1996-97 and 1997-98. However, during the year under consideration, by disturbing the method of valuation the AO made addition. Jurisdictional High Court in case of Commercial and industrial Ltd. (240 ITR 256) upheld the order of the Tribunal alone claiming the loss arising out of valuation .of slow moving raw material as estimated realizable value. Since the finding recorded by the CIT(A) has not been controverted by Ld. D.R. We, therefore, do not find any reason to interfere in the finding of CIT(A) for deleting the addition on account of valuation…

ACIT, New Delhi vs. M/S. Hcl Comnet Ltd., New Delhi

In the result this ground is dismissed

Bench: Shri S.V. Mehrotra : & Shri C.M. Garg :

…such stock was allowed by the department in the assessment year 1996-97 and 1997-98. However, during the year under consideration, by disturbing the method of valuation the AO made addition. Jurisdictional High Court in case of Commercial and industrial Ltd. (240 ITR 256) upheld the order of the Tribunal alone claiming the loss arising out of valuation .of slow moving raw material as estimated realizable value. Since the finding recorded by the CIT(A) has not been controverted by Ld. D.R. We, therefore, do not find any reason to interfere in the finding of CIT(A) for deleting the addition on account of valuation…

Hcl Comnet Ltd., New Delhi vs. CIT, New Delhi

In the result this ground is dismissed

Bench: Shri S.V. Mehrotra : & Shri C.M. Garg :

…such stock was allowed by the department in the assessment year 1996-97 and 1997-98. However, during the year under consideration, by disturbing the method of valuation the AO made addition. Jurisdictional High Court in case of Commercial and industrial Ltd. (240 ITR 256) upheld the order of the Tribunal alone claiming the loss arising out of valuation .of slow moving raw material as estimated realizable value. Since the finding recorded by the CIT(A) has not been controverted by Ld. D.R. We, therefore, do not find any reason to interfere in the finding of CIT(A) for deleting the addition on account of valuation…

M/S. Ntpc-Sail Power Co. Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result the appeals filed by the assessee for assessment years 2008-09 and 2009-10 stands allowed

Bench: Shri N. K. Saini & Smt. Beena Pillai

…uent years. Therefore, we are of the view that assessee's claim was justified. We accordingly allow this ground of appeal" 4.18 We find that the Hon'ble Delhi High Court in the case of cit vs. Bharat Commerce & Industries Ltd. (1999) 157 CTR (Del) 53: (1999) 240 ITR 256(Del) has held as under (short notes) : "An assessee is free to adopt a particular method of valuation of its closing stock which it has to follow regularly from year to year. At the same time it is well-settled that irrespective of the basis adopted for valuation for earlier years, the assessee has an option to change the method of valuation of…

M/S. Honda Siel Power Products Ltd., Gautam Budh Nagar vs. DCIT, New Delhi

In the result, both the appeals of the assessee-company are partly allowed for statistical purposes

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

…Sahib v. CIT: 56 ITR 360 (Mad.) • India Motor Parts and Accessories (P) Ltd v. CIT: 60 ITR 531 (Mad.) • CIT v. Dalmia Cement (Bharat) Ltd: 215 ITR 441 (Del.) • CIT v Indo-Commercial Bank Ltd.: 44 ITR 22 (Del.) • CIT vs. Bharat Commerce & Industries Limited : 240 ITR 256 (Del HC) • IAC v. Consolidated Pneumatic Tool Co. (India) Ltd.: 14 ITD 564 (Bom.) • Wipro Limited vs. DCIT: 96 TTJ 211(Bang.) • Samsung Electronics India Ltd. vs. JCIT (ITA No.3200 & 2344/Del/2000 & ITA No.3734/Del/2002) [Del ITAT] Reliance, is also placed on the following decisions, wherein it has been held that the provision made by the assesse…

Bses Rajdhani Power Ltd., New Delhi vs. ACIT, New Delhi

The appeal is partly allowed

Bench: Shri I.C. Sudhir & Shri Inturi Rama Rao Assessment Year : 2005-06 Bses Rajdhani Power Ltd., Vs. Assistant Cit, Bses Bhawan, Nehru Place, Circle-3(1), New Delhi. New Delhi. (Pan: Aagcs3187H) (Appellant) (Respondent) Assessment Year: 2005-06 Deputy Cit, Vs. Bses Rajdhani Power Ltd., Circle 3(1), Bses Bhavan, Nehru Place, New Delhi. New Delhi. (Pan: Aagcs3187H) (Appellant) (Respondent) Assessment Year : 2006-07 Bses Rajdhani Power Ltd., Vs. Assistant Cit, Bses Bhawan, Nehru Place, Circle-3(1), New Delhi. New Delhi. (Pan: Aagcs3187H) (Appellant) (Respondent) Assessment Year: 2006-07 Deputy Cit, Vs. Bses Rajdhani Power Ltd., Circle 3(1), Bses Bhavan, Nehru Place, New Delhi. New Delhi. (Pan: Aagcs3187H) (Appellant) (Respondent)

…tion of stock, the assessing officer failed to provide any reason/ logic in the impugned assessment order. 19.17 Reliance placed by the assessing officer on the decision of the Hon’ble Delhi High Court in the case of CIT vs. Bharat Commerce Industries Ltd.: 240 ITR 256 and the Hon’ble Bombay High Court in the case of CIT vs. Sanjeev Woollen Mills: 127 Taxman 209 is misplaced. 19.18 In the case of Bharat Commerce (supra), the Hon’ble Court categorically held that change in method of valuation is permissible if it is bona-fide and followed regularly from year to year. 19.19 In the instant case, the assessing o…

Commissioner of Income Tax vs. Samsung India Electronics Ltd

In the result, all the three appeals filed by the revenue are dismissed with

…y the department in the assessment year 1996-97 and 1997-98. However, during the year under consideration, by disturbing the method of valuation, the A.O. made addition. Jurisdictional High Court in case of CIT Vs. Bharat Commercial and industrial Ltd. (240 ITR 256), upheld the order of the tribunal alone claiming the loss arising out of valuation of slow moving raw material as estimated realizable value. Since the finding recorded by the CIT(A) has not been controverted by Ld. D.R., we, therefore, do not find any reason to interfere in the finding of CIT(A) for deleting the addition on 2012:DHC:5445…